If you believe your Partnership is a going concern and can continue to trade through financial troubles a PVA may be the right option for your partnership.
A PVA (Partnership Voluntary Arrangement) is very similar to a CVA (Company Voluntary Arrangement).
A Partnership Voluntary Arrangement (PVA) is an insolvency procedure which allows a financially troubled company to reach a legally binding agreement with its creditors. In a PVA a company can pay part of their debts back or agree payment in full over an pre-agreed period of time.
A PVA can be proposed by the partners of the partnership by using an Insolvency Practitioner to setup and manage it.
When the PVA has been proposed, a nominee (insolvency practitioner) reports to court on whether a meeting of creditors and shareholders should be held to consider the proposal.
The meeting decides whether to approve the PVA. If 75% of the creditors (by debt balance) agree to the proposal, it is then legally binding on all creditors who had notice of the meeting and were entitled to vote.
If the meeting of creditors and shareholders approves a PVA, the nominee becomes the supervisor of the PVA.
Once the PVA has been carried out, the company's liability to its creditors is cleared. This allows the company to continue trading throughout the PVA and afterwards. Once the PVA has been completed any remaining debts will be legally written off and the company continues to trade as before.
A PVA proposal is drafted by the directors with the assistance of our Insolvency Practitioners.
The proposals are then sent out to all interested parties (court, creditors and shareholders) allowing 14 days notice of the creditors meeting for the PVA.
At the PVA creditors meeting 75% of the creditors (by debt balance) vote either in person or by proxy at the meeting must approve the PVA.
" I found McCambridge Duffy to deliver on what they said they would do and to do so quickly with a minimum of fuss. There were not endless phone calls and letters but they got the facts, assembled the proposal and put it in place very quickly. The process was made less stressful by the way in which they managed it."
Work out what your new monthly debt repayment could be by filling in our debt and budget calculator form.
Client was struggling with monthly debt repayments of £500 to several creditors. We were able to have this reduced to £250 per month, with all interest and charges frozen. In 60 months, any remaining debts will be written off and they will be debt free.
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