Keep trading while addressing company debts through a realistic repayment plan, with direct advice from Molly Monks F.I.P.A., Licensed Insolvency Practitioner.
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A Company Voluntary Arrangement is a formal insolvency procedure that allows a company to agree how it will repay its debts over a fixed period. Where the business has a viable future, it can continue trading while making the payments set out in the approved proposal.
A licensed insolvency practitioner helps prepare the proposal, assesses whether it is achievable and, if it is approved, supervises the arrangement. Directors normally remain responsible for running the business.
The terms depend on the company’s circumstances and creditor approval. Some debts may be reduced under an agreed proposal, but a write-off is not guaranteed. Secured and preferential creditors’ rights need separate consideration.
A CVA needs more than a wish to keep trading. The company must be able to meet its ongoing costs and maintain the proposed contributions.
Your products or services still have a market, and there is a credible plan to restore sustainable trading.
Forecasts allow for wages, suppliers, rent and new tax liabilities as well as CVA payments. Repayments must remain affordable.
Creditors need enough clear information to assess the proposal and compare it with the likely outcome under alternative procedures.
Proposing a CVA does not itself stop creditor enforcement. If you have received a demand or winding-up petition, seek urgent advice about the protection and options available.
Molly explains what a CVA is, how the process works and when it may help a company with genuine prospects for recovery.
We explain each stage and help you build a proposal grounded in what your business can afford.
We listen to the pressures facing your company and explain the information needed to review its position.
We review debts, trading performance and cash-flow forecasts, and compare a CVA with other available options.
If a CVA is suitable, the proposal sets out contributions, duration, fees and the expected return for creditors.
Approval requires at least 75% by value of creditors voting, with an additional safeguard for unconnected creditors. Modifications may be requested.
If approved, the company makes the agreed payments while directors continue to run the business and meet ongoing liabilities.
The supervisor monitors compliance and reports to creditors. When the agreed terms are fulfilled, the arrangement is completed in accordance with the proposal.
You normally retain control of day-to-day trading. Your duties continue, including considering creditors’ interests where required. We will review guarantees and any separate personal exposure with you.
Continuing to trade can help preserve jobs, although restructuring may still involve changes or redundancies. A CVA does not automatically end employment contracts.
Creditors bound by the approved arrangement are dealt with under its terms. Secured and preferential claims require particular care, and rights cannot simply be removed without the necessary consent.
Molly is Parker Walsh’s founder and in-house Licensed Insolvency Practitioner. With more than 20 years’ experience, she helps directors understand their position and choose a practical way forward.
Our small, friendly team provides the expertise needed to review your finances, prepare a proposal and guide you through the formal process. Based in Bramhall, we work with businesses across the UK and offer consultations by telephone, video or in person.
Fees depend on the complexity of the company’s finances, the work needed to prepare the proposal and the length of supervision. There is no single cost that fits every company.
We will explain the proposed fees and how they are funded before you decide whether to proceed. The proposal should make the costs and anticipated creditor returns clear.
A free initial consultation is the starting point for assessing suitability and discussing likely costs.
We will explain which routes are realistic for your company and why.
If the main pressure is tax arrears and the company can repay them, an agreed payment schedule with HMRC may be an option. It does not address debts to other creditors.
Explore Time to Pay →Changes to costs, funding or operations may support recovery, sometimes alongside negotiations with creditors.
Explore restructuring →Where a formal rescue procedure or protection from enforcement is needed, administration may be considered. An administrator takes control of the company.
Understand administration →If the company is insolvent and there is no realistic prospect of recovery, a CVL may provide an orderly route to closure.
Understand CVL →Explore our CVA articles and related guides to understand the options before you decide what to do next.
Explains options when a company cannot pay HMRC, including Time to Pay arrangements, CVAs and pre-pack administration, stressing early advice and realistic, sustainable repayment commitments for directors.
Read the article →A Company Voluntary Arrangement allows struggling businesses to repay debts over time while continuing to trade, offering a viable alternative to liquidation for companies with genuine long-term prospects.
Read the article →Directors facing distress must choose wisely between CVAs, administration or informal standstills. This guide explains when each option works best, costs involved, risks, and how early advice improves rescue outcomes.
Read the article →This article explains HMRC debt escalation, enforcement risks, and when directors should consider a Company Voluntary Arrangement (CVA) or Creditors’ Voluntary Liquidation (CVL), featuring expert insights from insolvency practitioner Molly Monks.
Read the article →A Company Voluntary Arrangement (CVA) and a Time to Pay (TTP) arrangement with HMRC are both mechanisms to help a business manage debt, but they differ significantly in scope, formality, and impact.
Read the article →Explaining the benefits of a CVA and how it can allow a business to restructure its debts.
Read the article →Our free director’s guide explains urgent steps, Court hearings and banking risks when a petition has been received.
View the free guide →Our CVL guide explains when liquidation may be suitable and how the process works. It is useful if a CVA cannot be sustained.
View the free guide →If your question is not covered here, call us on 0161 546 8143. Initial advice is free and confidential.
Many proposals run for three to five years, but the duration depends on the company’s circumstances and the terms approved by creditors.
Yes, where the business remains viable. Directors normally stay in control, but the company must meet the arrangement’s terms and keep up with its ongoing trading costs and new liabilities.
No. Approval requires at least 75% by value of creditors who vote. The proposal cannot be approved if more than half of the total value of unconnected creditors whose claims are admitted for voting vote against it. Secured and preferential creditors’ rights cannot be reduced without their consent.
No. Preparing or proposing a CVA does not itself create an automatic moratorium. Once approved, creditors bound by it must follow its terms for the debts covered. Urgent enforcement risks may require a separate protective procedure.
HMRC can be a creditor in a CVA. Its treatment depends on the tax debts involved, their priority and the proposal’s terms. Support should not be assumed; affordability, compliance and creditor rights all need careful assessment.
Not automatically. A CVA deals with company obligations. Creditors may retain rights under personal guarantees, so these must be reviewed separately.
Speak to the supervisor promptly. Depending on the terms and circumstances, a variation may be considered, or the arrangement may fail and creditor enforcement or another insolvency procedure may follow.
The initial consultation is confidential. A formal CVA is a public procedure and can affect the company’s credit rating and relationships with lenders and suppliers.
Talk to Molly about your company’s debts, trading prospects and next steps. There is no charge for an initial conversation and no obligation to proceed.
