Is a CVA the Right Option for Your Business?

The directors who benefit most from a CVA are those whose business has sound underlying operations — good customer relationships, a reliable revenue base, a capable team — but whose accumulated debt has reached a point where normal trading cannot clear it.

Common triggers include significant HMRC arrears from a difficult trading period, a winding-up petition that needs to be addressed urgently, an onerous property lease that is dragging on profitability, or a combination of creditor pressures that individually might be manageable but together are not.

The critical question is viability. A CVA only works if the business can realistically generate enough cash to fund both ongoing operations and the agreed creditor repayments over the term of the arrangement. If it cannot, a CVA is not the right tool — and we will tell you so before you commit to the process.

What is a Company Voluntary Arrangement?

A CVA is a formal, legally binding agreement between a company and its creditors to repay a proportion of its debts over a fixed period — typically three to five years. It is initiated by the directors, supervised by a licensed insolvency practitioner, and approved by a creditor vote.

To be approved, the proposal must receive support from creditors representing at least 75% by value of those who vote. Once that threshold is met, the CVA binds all unsecured creditors — including those who voted against it or did not vote at all. This is one of the most powerful features of the procedure: a minority of dissenting creditors cannot block a proposal that the majority supports.

During the CVA, directors retain day-to-day control of the business. There is no administrator, no external manager, no loss of authority over trading decisions. The supervisor — the licensed insolvency practitioner overseeing the arrangement — monitors compliance with the terms and manages distributions to creditors, but operational control remains with the management team throughout.

Expert Advice, Delivered Personally

The Insolvency Practitioners is an independent national firm led by Michael Chamberlain – one of the UK’s most experienced insolvency professionals. With over 30 years of practice, Big 4 pedigree, and a consistent track record of successful business turnarounds, Michael built this firm on one belief: that directors facing difficult decisions deserve honest, expert advice delivered with humanity, not judgement.

Every director who contacts us speaks to Mike directly – not a junior, not a call handler. That is not something every firm can say.

“Thirty years in insolvency, and the conversation I have most often isn’t about CVAs or liquidations. It’s with a director who knew something was wrong six months ago and didn’t know who to call. That delay almost always makes things harder.”

• Mike Chamberlain, Founder & Licensed Insolvency Practitioner

How the CVA Process Works

Once we have assessed your position and agreed that a CVA is the right route, the process follows a clear sequence.

1. Appointment of a nominee. You appoint a licensed insolvency practitioner — the nominee — to assess the company’s viability and prepare the formal proposal.
2. Proposal formulation. Together, we draft the CVA proposal: a plan that is fit, fair, and feasible, setting out how creditors will be repaid over the term of the arrangement.
3. Creditor voting. The proposal is put to a creditor vote. We manage the correspondence and virtual meetings throughout.
4. Supervision. If approved, the nominee becomes the supervisor — overseeing implementation, monitoring repayments, and managing distributions to creditors.

Completion. Once the terms are met in full, the remaining unsecured debts included in the arrangement are written off and the company continues trading debt-free.

Ready to Find Out if a CVA is Right for You?

Our first conversation costs nothing and commits you to nothing. It will tell you clearly whether your business is a viable CVA candidate – and if not, what the alternatives are.

Speak to Mike Chamberlain – book a free, confidential call

Not yet sure whether a CVA or Administration is the right route? Our Rescue My Company page explains both options side by side.

Start the Conversation

Let’s slow this down and go through it together. Use the form below to request a callback from Mike or a senior member of the team. We will listen to your situation and outline your practical options without judgement.

Your enquiry is strictly confidential. We will never share your details with third parties or creditors without your explicit instruction.

Speak to Mike Chamberlain

What happens next? Mike or a member of the team will review your details and call you back for a quiet, professional conversation about your company’s future.