Partnership Voluntary Arrangement (PVA)

What is a PVA?

A Partnership Voluntary Arrangement (PVA) is a debt solution that’s specifically designed for business partnerships.

A PVA allows you to keep trading and make just one monthly affordable payment to your creditors. Also, if you make the agreed payments for 5 years, your creditors will write off the rest of your business debts.

It follows the same structure as a normal IVA or self-employed IVA – but it is for business partnerships, where more than one person is responsible for the debts.

PVAs were introduced under the Insolvent Partnership Order (1994). This allowed partnerships to agree a voluntary arrangement with their creditors – so they could continue to trade, rather than entering bankruptcy proceedings where trading would have to cease. 

The partnership will need to be a viable business in order to propose a PVA. And all Partners must consent to the PVA proposal.

Partnership Voluntary Arrangements (PVAs) have multiple benefits – one affordable monthly payment, legal action against the partnership is stopped, and you can continue to trade.

However, as a business partnership isn’t a legal entity like a limited company, all the partners are ultimately personally liable for any business debts.

A PVA could be rejected by creditors, who might see it as more beneficial for them to chase the individual partners for repayment of the business debt.

If you’re being pursued personally by your partnership’s creditors, it might be necessary for you (and other members of the partnership) to enter your own Individual Voluntary Arrangement (IVA).

If you – or any of the other partners in your business agreement – don’t have any other valuable assets or finances set aside, it is unlikely that a PVA proposal would be rejected.

Who should use a PVA?

PVAs may be suitable for partnerships which are insolvent, yet want to keep trading. However, if your partnership is losing money, it might be worth considering whether it is actually beneficial to keep your partnership going. 

If you’re a partner in a partnership and have personal assets – or personal debts you can’t pay – you may also wish to consider an IVA or a self-employed IVA. This will help protect your personal assets from the partnership’s creditors.

Struggling with partnership debts and need help?


You don’t have to go through this alone – get in touch with PayPlan.

Call us FREE today on 0800 280 2816 and our friendly advisers will offer you FREE advice, and talk you through each of your options for dealing with your debts.

What do you have to lose? We might even be able to find a way to save your business.


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