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A company voluntary arrangement (CVA) is a formal agreement between a company and its creditors to repay part of its debts over a fixed period, completed under the Insolvency Act 1986. A licensed insolvency practitioner acts as supervisor, managing the process and binding creditors who vote in favour. The process can pause or restrict creditor enforcement while the proposal is considered and implemented, and it may affect directors’ powers and duties. It is used to rescue a business or achieve an orderly wind‑down.
What a solicitor handles in these matters
The solicitor drafts the CVA proposal, coordinates the creditors’ meeting, drafts the terms of the arrangement, and liaises with the supervisor and company management. They prepare the accompanying documents, advise on HMRC and employee considerations, and respond to creditor inquiries. They ensure compliance with statutory requirements, monitor ongoing performance, and address any modifications or enforcement actions under the CVA.
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