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This is usually a creditor driven process, which follows a court winding-up order, usually on the petition of a creditor. It is a creditor’s action of last resort in attempting to collect an outstanding debt.


PVA’s are available to partnership in the same way that CVA’s are to companies.
A proposal is prepared within a statutory framework that needs to be approved by the partnership and its creditors.


The advantage to the partners is that they may be able to remain in business and may avoid the stigma of bankruptcy.

The advantage to the creditors is that they generally receive a higher dividend than in bankruptcy.

An IVA may also be appropriate for individual members of the partnership and also all partners can enter into separate voluntary arrangements with their creditors.

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