Where the partners of a business believe that the partnership is viable but is under financial strain, a PVA can act as a rescue mechanism in controlling the finances of the business whilst you focus on restructuring the business and trading forward.
However, if you or your partners are considering a PVA, you will need to be able to prove that the partnership business is viable and that each of the partners' estates is solvent prior to the being able to propose a PVA.
By having a PVA in place, it will allow for an arrangement between the partners and your creditors to be put in place to allow the debts of the partnership to be paid over a period of time.
Under the arrangement the partnership will make regular payments periodically from which the creditors will be paid a certain amount each month.
This means that you have your financial worries all under control and can return to running the partnership.
A PVA is only a viable option for your partnership business is viable and if you have disposable assets which may need to be sold.
If however the partners believe that the business is not viable there are other options which would be more suitable such as winding up the partnership.