Voluntary Arrangement

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Definition: Voluntary Arrangement

Voluntary Arrangement
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What is the dictionary definition of Voluntary Arrangement?

Dictionary Definition

  1. A Company Voluntary Arrangement (CVA) is a procedure provided for by the Insolvency Act 1986, in which a company may come to an arrangement with it’s creditors to pay off it’s debts and to manage it’s affairs so that it resolves it’s financial difficulties.
  2. An Individual Voluntary Arrangement (IVA) is a similar agreement between a debtor and his creditors (also under the Insolvency Act 1986). It takes the form of either a scheme of arrangement or a composition and can be made either before or after a bankruptcy order is made.

Full Definition of Voluntary Arrangement

The CVA is a form of composition, similar to the personal IVA (individual voluntary arrangement), where an insolvency procedure allows a company with debt problems or that is insolvent to reach a voluntary agreement with its business creditors regarding repayment of all, or part of its corporate debts over an agreed period of time.

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May 18, 2024 https://payrollheaven.com/define/voluntary-arrangement/.
Chicago Manual of Style (CMS):
Voluntary Arrangement. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/voluntary-arrangement/ (accessed: May 18, 2024).
American Psychological Association (APA):
Voluntary Arrangement. PayrollHeaven.com. Retrieved May 18, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/voluntary-arrangement/

Definition Sources

Definitions for Voluntary Arrangement are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th August, 2019 | 0 Views.