Partnership Voluntary Arrangement (PVA)
To manage this problem of joint and several liability an individual partner can also propose an Individual Voluntary Arrangement (IVA), either alone or by having an “interlocking” IVA with the other partners.
NOTE: A Partnership Administration Order and the protection that offers can be granted by a court provided it is satisfied that the order would achieve one of the following.
- The continuance of the partnership as a going concern.
- A greater realisation of the partnership assets than would occur in a winding up.
Once a Partnership Administration Order is granted all creditor action against the partnership is frozen and an Administrator is appointed to deal with the management of the business and its affairs, in accordance with a pre-arranged plan (or pre-package).
Read our blog on the insolvency options available to partnerships
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