Partnership Voluntary Arrangement Process

We will work closely with you and your partners traduce a realistic and affordable proposal to settle your debts. We will assist you in collating all the necessary information and deal with all creditors.

Our recommended Insolvency Practitioner will then act as a nominee who will have the responsibility of reviewing the proposals we put together. If the nominee is then satisfied with our proposal and believes that it maximises the interest of the creditors he will put it the court and your creditors.

Writing the proposal

In drawing up a proposal for the nominee's consideration we will need to take into account a number of factors that will affect how much you will be able to afford to pay such as the cash flow of the business, overheads including fixed and variable costs, the problems and the future viability of the business.

In writing the proposal we will not put forward an offer, especially for the first year of the arrangement that is too high or unrealistic for the partnership to pay. However, each partnership is different and a proposal will be made based on the merits of the business and what is affordable for the partnership.

PVA Proposal contents

The proposal will outline why the business has failed and reasons as to why it is insolvent. It will give a synopsis of the arrangement detailing how the creditors will be repaid.

The statement of affairs will be used by the creditors to decide whether they are willing to support the PVA. The statement of affairs will outline the financial situation of the partnership and subsequently show that the partnership is insolvent. In addition it will also explain what the consequences will be if the partnership went into liquidation and the PVA which will in turn show which option will give the creditors a better return.

The proposal will also show how long the arrangement will last and how the partnership will pay during that period.

Creditors meetings and voting

The proposal will be filed at court and sent to all the creditors after which a creditors meeting will be called.

The creditors will have a minimum of 14 days to review the proposal documents from which they can raise any questions or concerns or even make propose amendments at the meeting.

At the meeting, there will need to be a 75% approval from the creditors that are in favour of the PVA. Once the proposal is agreed, you will be able to continue trading as a partnership whilst clearing your debts in accordance with the arrangements.