Partnership Voluntary Arrangement (PVA)

A Partnership Voluntary Arrangement (PVA) is a legal agreement designed for partnerships facing financial difficulties. It allows the partners to propose a repayment plan to their creditors, helping them manage debt in a structured way. By reaching an agreement, the partnership can continue operating while paying off its debts over time. The PVA must be approved by creditors, and once agreed upon, it protects the partners from legal actions from those creditors. This arrangement aims to find a practical solution, enabling the business to recover financially while maintaining relationships with creditors.