Individual Voluntary Arrangements (IVA) and Company Voluntary Arrangements (CVA).

Individual Voluntary Arrangements (IVA) and Company Voluntary Arrangements (CVA) are, as their name would suggest, voluntary agreements with creditors to secure a better return on monies owed than would be achieved in a liquidation or bankruptcy.

They allow creditors and debtors to negotiate a flexible solution which can be actioned over a long period to resolve debt situations. The key is that both the debtor and creditors must approve the arrangement (the debtor via proposing it in the first place and the creditors by voting). As such, no party (save for up to 25% of creditors that do not approve the arrangement but are still bound by it) is forced into accepting the IVA or CVA, which generally means parties are happier proceeding this way rather than via more formal insolvency options.

We can help with the formation of an IVA or CVA working with a network of local and national insolvency practitioners to ensure that proposals are constructed with the greatest chance of acceptance by creditors from the outset.

Our specialist insolvency team has extensive experience in advising on the interpretation of proposals and assisting supervisors in the conduct of their office. We also act for supervisors on the occasions when such arrangements fail and liquidation or bankruptcy ensues.