Company Voluntary Arrangement Service
A Company Voluntary Arrangement (CVA) service could offer the structured support you need to regain control if your company is struggling with debt but remains fundamentally viable.
Designed to help insolvent businesses avoid liquidation, a CVA allows your company to continue trading while repaying creditors under binding terms.
At the Liquidation Centre, our award-winning, in-house insolvency practitioners offer expert guidance through every stage of the CVA process.
With over 20 years of experience supporting UK businesses, we provide a professional, clear and efficient service that reduces stress and restores direction.
Contact the Liquidation Centre today for confidential advice and a free consultation on whether a CVA is the right option for your company.
Why use a Company Voluntary Arrangement service?
For many directors, the idea of liquidation feels like the only way forward when financial pressures mount. However, if your business is still operational and capable of recovery, a Company Voluntary Arrangement service offers an alternative path that preserves your operations and protects your reputation.
A CVA is a legally binding agreement between a company and its creditors that allows debts to be repaid over time, often at a reduced rate. In most cases, creditors receive a percentage of what they are owed, based on what the company can realistically afford over a three to five year period. This means your business can continue trading, safeguarding jobs and avoiding the disruption of liquidation. Creditors benefit from a structured and transparent repayment plan, and your company avoids immediate closure, asset loss, or forced legal action.
Choosing a Company Voluntary Arrangement can stabilise your financial position and give your business room to breathe. With the right guidance and a compliant, HMRC-approved plan, your company will be in a stronger position to rebuild and grow, free from the threat of creditor pressure.
Who will benefit from a Company Voluntary Arrangement service?
A Company Voluntary Arrangement service can offer practical and financial relief to a variety of business types and situations, including:
- Companies experiencing short-term cash flow difficulties
Businesses that are temporarily unable to meet obligations but are fundamentally viable in the long term can benefit from the breathing space a CVA provides.
- Directors under increasing pressure from creditors or legal threats
If you are facing winding-up petitions, statutory demands, or County Court Judgements, a CVA can help halt these proceedings and prevent forced liquidation.
- Businesses looking to avoid reputational damage
A CVA offers a more discreet and professional exit from financial difficulty compared to insolvency or compulsory liquidation.
- Companies that want to restructure and streamline operations
A CVA provides the opportunity to renegotiate contracts, exit costly premises, or reduce workforce overheads while staying in business.
Signs you need a Company Voluntary Arrangement expert
If you’re unsure whether a CVA is the right course of action, consider the following signs:
- Your company is unable to pay its debts when they are due.
- You are receiving frequent contact from creditors, HMRC, or debt collection agencies.
- You’ve received formal threats, such as a winding-up petition or a statutory demand.
- Cash flow has tightened significantly, even though your business model is still sound.
- You want to continue trading and protect your employees from redundancy.
- You are willing to repay creditors from the company’s profits, but need time and structure to do so.
- You require professional support to negotiate with multiple creditors.
If several of the above signs apply to your company, a Company Voluntary Arrangement service may be the most suitable option.
Why choose Liquidation Centre for your Company Voluntary Arrangement services
Choosing the right provider is essential to the success of your CVA.
At the Liquidation Centre, we take the time to understand your company’s unique situation and craft a proposal that satisfies both your business goals and creditor expectations.
As your Company Voluntary Arrangement service provider, the Liquidation Centre will:
- Provide clear and jargon-free guidance from day one.
- Prepare and negotiate a detailed proposal on your behalf.
- Help you to protect your business operations while dealing with legal and financial pressures.
- Work with HMRC and other creditors to secure support for your plan.
- Manage all statutory filings and compliance responsibilities throughout the arrangement.
- Ensure complete transparency and fixed pricing with no hidden costs.
Get in touch now for tailored advice and a free initial consultation with one of our licensed insolvency practitioners.
What are the benefits of a Company Voluntary Arrangement service?
Protects your business from legal action
Once a CVA is in place, creditors are legally prevented from taking further action against your company to pursue the debts included in the CVA, including winding-up petitions or bailiff enforcement. This gives your business the breathing space it needs to recover.
Keeps you in control of trading
Unlike liquidation, a CVA allows the directors to retain control of the company during the process. You continue to trade and make business decisions while meeting the company’s obligations to creditors under a formal repayment plan.
Helps preserve jobs
Because the company remains operational, jobs can be saved. This avoids the disruption and emotional toll of redundancies associated with closure or insolvency.
Restructure debt into one affordable payment
The typical CVA simplifies repayment into a single monthly contribution based on what your business can genuinely afford. Over the agreed three to five year term, creditors receive a percentage of the outstanding debt rather than full immediate repayment, which makes the arrangement realistic and sustainable while improving cash flow and forecasting.
Improves creditor relationships
A well-managed CVA demonstrates that you are proactive and committed to repaying the company’s obligations, which can help rebuild trust and improve your standing with suppliers, landlords, and HMRC.
Prevents reputational damage
Compared to liquidation or administration, a CVA offers a more discreet process that allows you to preserve your brand image, retain customers, and maintain staff morale.
What is the cost of a Company Voluntary Arrangement service?
The cost of a Company Voluntary Arrangement service depends on the size, complexity, and number of creditors involved. Typically, professional fees include:
- Initial Consultation and Proposal Drafting: Often rolled into the Nominee’s fee.
- Nominee’s fee: Usually between £3,000 to £6,000, depending on the business’s complexity.
- Supervisor’s fee: A percentage of monthly repayments, typically agreed upon with creditors.
At the Liquidation Centre, we provide transparent pricing with no hidden costs. We’ll give you a clear quote upfront based on your unique circumstances. Our aim is to ensure the service is cost-effective and supportive of your business’ recovery.
What is the Company Voluntary Arrangement process?
A CVA involves several structured stages, each managed with precision by our insolvency practitioners. Here’s how this process works:
Stage 1 – Initial consultation
We assess your financial position, business viability, and suitability for a CVA. If appropriate, we begin drafting a tailored proposal.
Stage 2 – Proposal preparation
We work with your team to prepare a formal CVA proposal. This includes outlining how much creditors will be paid, usually a percentage of the total debt, over what period (commonly three to five years), and how the business will operate during the term.
Stage 3 – Nominee appointment and filing
A licensed insolvency practitioner is appointed as the Nominee. They file the CVA documents with the court and notify creditors.
Stage 4 – Creditors’ and shareholders’ meetings
Creditors vote on the proposal. At least 75% (by value) of voting creditors must approve it for the CVA to take effect. A shareholders’ meeting is also held.
Stage 5 – Implementation and supervision
Once approved, the CVA is legally binding. The company begins making monthly payments, which the Supervisor pays to creditors in the legal order of priority, and the Supervisor ensures the arrangement is adhered to throughout the agreed term.
Company Voluntary Arrangement FAQs
What is a Company Voluntary Arrangement? ▸
A CVA is a formal insolvency procedure that allows a financially distressed but viable company to repay its debts over time under a legally binding agreement with creditors. It is overseen by a licensed insolvency practitioner.
How long does a CVA last? ▸
Most CVAs last between three to five years, depending on the repayment terms agreed with creditors. Some may be shorter if sufficient funds are available.
Will my creditors accept a CVA? ▸
Creditors are likely to accept if it offers them a better return than liquidation. In most cases, this means receiving a structured percentage repayment over several years, rather than little or nothing if the company were wound up. Approval requires a 75% majority (by value) of those who vote. Engaging experienced liquidation and insolvency practitioners improves the chances of acceptance.
Can a CVA stop legal action? ▸
Yes. Once approved, the CVA prevents creditors from pursuing further legal action to collect the debts included in the CVA or forcing liquidation, provided the terms are adhered to.