Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Voluntary arrangement definition

What does Voluntary arrangement mean? In practice, a voluntary arrangement is a negotiated, legally binding compromise of debts that lets a debtor pay in full or in part over time while avoiding bankruptcy or liquidation. The term is descriptive: in England & Wales and Northern Ireland it most commonly refers to a company Voluntary Arrangement (CVA) for companies and an Individual Voluntary Arrangement (IVA) for individuals, both statutory procedures under the Insolvency Act 1986 (and the Insolvency (Northern Ireland) Order 1989). In Scotland, CVAs are available, but individuals use protected trust deeds or the Debt Arrangement Scheme rather than IVAs. In Ireland, “voluntary arrangement”...

Secured creditors and guarantees in CVAs: enforcement rights, moratorium vetoes, landlord issues, proving and valuation, and unfair prejudice (England and Wales)

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

A company Voluntary arrangement (CVA) proposal, or any alteration to it, cannot be approved by the company or its creditors if it would interfere with a secured creditor’s ability to enforce its security, unless that secured creditor agrees. In practice, where significant secured creditors or major landlords are involved, it would be atypical to advance a CVA without prior dialogue with them before circulating the proposals (see Practice Note: CVAs—landlord issues and remedies). In addition, where a CVA is put forward within 12 weeks of a Moratorium ending under the Corporate Insolvency and Governance Act 2020 (CIGA 2020), those owed unpaid moratorium debts and Priority pre-moratorium debts effectively hold a veto: neither the company nor the creditors may sanction the CVA unless those liabilities are discharged in full, unless the relevant creditors consent. CIGA 2020, Sch 3, para 4 protects creditors with unpaid moratorium debts and priority pre-moratorium debts (as defined in new section 174A of the Insolvency Act 1986 (IA 1986)) in any subsequent CVA (see Practice Note: Moratorium). The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, apply to CVAs...

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Lexa Hilliard , KC

Wilberforce Chambers

Lexa Hilliard KC is a popular and well-respected silk who is recommended by the legal directories for commercial dispute resolution, commercial chancery, company, insolvency and professional negligence. Her expertise also covers arbitration, banking and finance as well as fraud. She is particularly known for her cross-border litigation experience, often involving an insolvency or civil fraud angle. Clients note that she is: 'keenly commercial, incredibly passionate and works seamlessly with the team' and that she has: 'hugely impressive advocacy skills and strategic input'. She regularly handles high value, legally complex cases in both the domestic and international market, acting both as advocate and expert. Her ability to be 'highly inventive and always think of new ways to approach a case" allied to her: "no-nonsense approach" ensure her success with judges and tribunals as well as clients....

Web page updated on 21/05/2026

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