A Company Voluntary Arrangement (CVA) is a debt management tool offered to businesses in Scotland.

Unfortunately, a huge proportion of companies that attempt a CVA end up collapsing.

This infographic investigates the numbers and the causes behind them.

A CVA allows an insolvent company to reorganise itself, write off some of its debts and replay the remainder over an agreed fixed period. This, in theory, allows a business to reduce its montly expenditure and increase the likelihood of long-term survival.

For businesses in trouble, a company voluntary agreement (CVA) can seem like an attractive and simple propositio. It lets directors stay in control, results in a portion of debt being written off, prevents creditors taking action against the company and the shareholders retain their ownership.



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