CVA creation: timeline

A Company Voluntary Arrangement (CVA) is a formal agreement concerning the repayment of debt between a company and its creditors. The agreement will be overseen by a licensed Insolvency Practitioner, and in many cases will mean that a percentage of the company’s debt will be written off.  We explain the process of CVA creation here.

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Why choose a CVA?

Creditors often decide to accept a CVA because the alternative may well mean that the insolvent company has no other choice but to go into liquidation; in these cases the creditor would likely receive much less, or potentially nothing at all. A CVA however, will mean that the creditor will receive less than the full amount they are owed, but this will be better than the alternative in liquidation.

CVA creation: how long does it take?

A common example would be for a company to make payments into a CVA for 5 years, (although this could be for a shorter period if the creditors accept it). Here we outline the timeframes and steps which must be followed for the CVA to be put in place, which will give you an idea of the basic processes.


Initial advice meeting (completely free)

Timeline: same day

We set up a meeting with you either the same day for an ‘online meeting’, or a face to face meeting at a time and place to suit you. We’ll need at least one of the company’s directors there to explain the business’ financial situation, after which we’ll give you an initial outline of various options available. We’ll leave you with a list of further information to get together.


Review information & advice (completely free)       

Timeline: usually 1-14 days

We review all the information and advise you on all the available options (not just CVAs). We’ll provide you with a fee quote and our terms of business for review. We’ll discuss any matters specific to your company in more detail, such as leases, personal guarantees or contracts.


Instruction and convening the creditors meeting        

Timeline: usually 1-3 days

If you would like to go ahead, and you have agreed to our terms, you will formally instruct us to propose a CVA to the company’s creditors.

We’ll prepare the proposals and call a meeting of creditors to take place usually 16 – 28 days after formal instruction. The proposals will be sent to creditors to be considered.


Creditors’ meeting         

Timeline: usually 16-28 days

The meeting is held remotely and usually lasts between 10 – 30 minutes. Often creditors will send in votes through the post or email, rather than attend the meeting. You will need to nominate one of your directors to attend by video link.

In order for a CVA to be approved the creditors must vote in favour of the proposals by enough to represent over 75% of the value of the debt. As long as the creditors agree, the CVA will be put in place after the meeting closes. During this time the CVA creditors are bound by the arrangement and cannot take action against the company.

Find out more about what happens at liquidation creditors’ meetings here.


The arrangement & completion       

Timeline: usually 5 years

We monitor the arrangement to ensure that it proceeds as expected. We distribute payments to creditors.  Generally, we will conduct an annual review to see if circumstances have changed.

After the agreed timeframe is up, once we are happy that there are no outstanding matters, and clearance has been received from H.M. Revenue and Customs, a certificate of full completion will be issued to confirm the balance of any debt from the CVA is essentially written off.


What your CVA timeline could look like

  1. Contact us to arrange a meeting. This can be done same day via an online meeting if there is an urgent need such as bailiff action.
  2. If you work with us in getting information together quickly, we could:
  • Contact your creditors within 2 days of meeting with you
  • Agree a CVA within 21 days of meeting with you

If you have any questions, or would like to book a meeting with one of our business rescue experts to discuss this in more detail, please feel free to contact us directly.