Ashley Park Debt Solutions

Ashley Park: PVA

What is a PVA?

A Partnership Voluntary Arrangement (PVA) can be used by a Company trading as a partnership. A PVA is useful for companies that have unsecured debts that they are struggling to repay. A PVA is a legally binding agreement whereby the creditors of the company agree to receive smaller regular repayments over a period of time (usually 5 years). At the end of this period any outstanding debts are wiped clear, regardless of how much is outstanding.

Creditors see a PVA as a better alternative to a company with solvency issues, as they can usually reclaim a larger proportion of the debts owed to them.

A PVA will allow a company continue to trade, providing the owners have proven that they have a viable business model.

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