In the event that a business is facing failure as a result of debt which it is not able to pay, and instead it finds itself engaging in coping with creditors rather than operating, a company voluntary arrangement may be the perfect solution to bail the business out.

A company voluntary arrangement (CVA) enables the business to keep on running as usual while servicing its debts within a convenient repayment program. The program works in such a way that creditors of the company agree to receive reduced installments towards payment of the debts owed for a given agreed period, often five years.

Creditors are lawfully restricted not to add any extra interest or charges during the course of the CVA arrangement. At the end of the period of the arrangement, any outstanding debt is promptly written off, and the company is now left to run without any more debt problems.