Partnership Voluntary Arrangement (“PVA”)
Broadly speaking, a PVA is a legally binding contract between the partnership and its creditors where the partners want to save the business but cannot afford to pay all of the debts due now.
It usually involves a freezing of interest and partially writing off debts with an agreed payment plan over one to five years, whilst continuing to trade.
If suitable, a PVA can mean a fresh start for the partnership. This insolvency procedure tends to be proposed as an alternative to liquidation when the Partners wish to continue to trade the partnership. This can mean that a business can be saved and employees may be able to keep their jobs.
Successful PVAs usually have a better outcome for the partnership and the creditors than liquidation because the partnership continues to trade and creditors usually get a higher dividend.
At our initial free meeting we can provide Partners with advice as to whether a PVA is the best option for your partnership in the circumstances or whether an alternative should be considered. We can explain the pros and cons of all of your options available to help you make the right decision
We can help
We have offices in Plymouth and St Austell. Geographically we cover all of Cornwall, Devon and Somerset and the initial free meeting can be held at a local venue to suit you.
I’m based in Plymouth (not a call centre with an anonymous number) and have been in practice here since 2002. I am a licensed insolvency practitioner.