Birmingham 0121 728 5581

Bristol 0117 332 3844

London 0203 667 8693

Manchester 0161 537 2702

Southampton 0238 235 8122

What is a CVA?

What is a CVA?

A CVA is a formal insolvency procedure for a limited company in the UK where directors get to retain control of the company.

A CVA is usually used as an alternative to liquidation

In a nutshell a CVA is an agreement between a company and its creditors which is legally binding and approved via the court. 

More often than not the company proposes to pay its creditors a better return than the sum they would get in liquidation but over much longer period of time.

If creditors accept the proposed CVA then a line is effectively drawn and all the old liabilities are frozen. 

The company then continues to trade under the control of the directors but must pay for its on-going supplies and liabilities.

David Kirk ACA FABRP

David Kirk

David Kirk is a Chartered Accountant and Licensed Insolvency Practitioner.
Read More

Business Recovery
"We were cornered and thought it was the end of the business after 20 years but he got us out of it."
Lynne Firman of Just Beds Ltd
Business Renewal
“You made a very difficult time much easier for us.”
R Johns
Business Rescue
"David Kirk helped us with an Administration to rescue the business. He did exactly what he said he would do. It has worked out very well."
Chris Pratt of Elecsis Ltd
Business Renewal
"It was a very difficult decision to make to go into Administration but now I am so glad we did it. David and his team were great thank you."
Jacci Dellaway of Baylift Services Ltd
Business Rescue
“At the initial meeting you told us the good and bad things that can happen and were honest and told us to watch out for. No one else had done that.”
J White