Voluntary Arrangements - Individual / Partner / Company (IVA / PVA / CVA)
A Voluntary Arrangement is an alternative to bankruptcy / liquidation introduced into Northern Ireland by way of legislation – The Insolvency (NI) Order 1989. It enables an individual / company in debt to make a legally binding agreement with the people they owe money to (creditors).
Lismore & Company have specialists who are very experienced in advising, setting up and supervising Voluntary Arrangements.
A Voluntary Arrangement for a company is often referred to as a CVA.
A Voluntary Arrangement for a partnership is often referred to as a PVA.
A Voluntary Arrangement for an individual is often referred to as an IVA.
Technically, agreement is negotiated with the creditors by way of a formal Voluntary Arrangement Proposal and the agreement may provide for creditors to receive either a fixed or estimated dividend in full and final settlement of their debts. The amount of dividend creditors receive may range from Nil to 100 % plus interest.
Once agreed, no further charges will accrue to the debts within the Voluntary Arrangement. The agreement is fixed and creditors cannot randomly demand changes to its terms and conditions.
A Voluntary Arrangement is most suitable when someone / company is unable to pay their debts as they fall due for settlement, or shortly thereafter and where they do not want to file for bankruptcy / liquidation.
The benefits of a Voluntary
Arrangement include –
A Voluntary Arrangement stops all ongoing and pending legal actions against you / the company in respect of the debts included in the Voluntary Arrangement.
The consequences of bankruptcy / liquidation are avoided.
It invariably provides for a better outcome for both you and your creditors than would be the case in a bankruptcy / liquidation.
Creditors cannot pursue you for the debts within the Voluntary Arrangement whilst the Arrangement is being implemented.
When the Voluntary Arrangement is completed you / the company are deemed to be released from the debts within your Voluntary Arrangement.
