A Company Voluntary Arrangement (CVA) is the main alternative for companies facing liquidation.
A CVA is a formal arrangement with creditors to repay them, usually over a period of several years. The fixed amount to be paid is often lower than the outstanding debt. This arrangement gives the company more security in its budgeting and allows it to continue trading.
People sometimes refer to a CVA as a Creditors’ Voluntary Agreement, a Creditors’ Voluntary Arrangement or simply a Voluntary Arrangement or Voluntary Agreement, but Company Voluntary Arrangement (CVA) is the official term.
If you are not sure whether this is the right option for your company or if liquidation is preferable you can use our two-minute online assessment to get advice and a quote for how much it would cost to start the liquidation process.