Partnership Voluntary Arrangement
A Partnership Voluntary Arrangement (P.V.A.) is similar to an IVA with the exception that it applies to a firm of individuals trading jointly as partners.
Partners are jointly and severally responsible for the debts of their firm and normally for carrying out the terms of an Arrangement if agreed with creditors. It is often necessary to propose also separate, parallel IVAs for each partner relating to their personal income, assets and liabilities.
In that case the different sets of proposals should spell out fully the ranking of claims in each estate, in particular the claims of the partnership as against the individual estates. PVA scenarios are often complex and require very careful handling.
This information is written in general terms and cannot be fully comprehensive. Its application to particular circumstances will depend on specific facts. The views and suggestions set out are not intended to constitute professional advice or to be a substitute for specific advice.
