Bankruptcy can be very damaging for business owners. However, if you do find yourself in financial difficulties, there are alternatives Dains can advise you on..

Individual Voluntary Arrangement (IVA)
An IVA is a procedure for individuals, which is an alternative to bankruptcy. The process is legally binding and allows an individual to put forward a proposal to their creditors for a financial settlement of debts over a period of time.

Assets need to be realised for the benefit of the creditors in the proposal. This is usually from the sale of an asset and/or contributions from income. If you wish to proceed with an IVA a Licensed Insolvency Practitioner should be appointed who will prepare the proposal and try to get the necessary approval of creditors. If the terms of the agreement are defaulted on, it usually results in a bankruptcy order being made.

Partnership Voluntary Arrangement (PVA)
This can be used to prevent the bankruptcy of individual partners. A PVA allows the partnership to continue to trade, with the partners retaining the day to day control of the business. As with an IVA, contributions are made to an Insolvency Practice to repay the creditors of the partnership.
The personal assets of individuals are usually excluded. It is however advisable for partners to draw up interlocking IVA’s to maximise protection.

Company Voluntary Arrangement (CVA)
Again, this is controlled by a Licensed Insolvency Practitioner. It is similar to a PVA but is used for Limited Companies.



Dains Business Recovery Limited - Registered Company number 10115314. Registered office St John's Court, Wiltell Road, Lichfield WS14 9DS. Registered in England and Wales.

Martin FP Smith and Nicola J Meadows are licensed in the United Kingdom to act as Insolvency Practitioners by the Institute of Chartered Accountants in England and Wales.  Furthermore, they are both bound by the Insolvency Code of Ethics when carrying out all professional work relating to an insolvency appointment.  When acting as Receivers, Administrative Receivers or Administrators they act as agents only, without personal liability and when acting as Administrators, the affairs, business and property of the company are being managed by them.