Corporate Insolvency  >  Company Voluntary Arrangement

The Insolvency Act 2000 introduced a court protected debt moratorium for the purpose of instigating the company voluntary arrangement “CVA”. The directors of an eligible company can lodge an application in court setting out the reasons why the company is experiencing financial difficulties and tabling the terms of the proposed CVA i.e. moratorium designed to improve the overall financial position for the benefit of the stakeholders: the company employees, customers, suppliers etc.

The moratorium commences on the day that the application is lodged in court and lasts for a maximum of 3 months during which time a meeting of the company's creditors is convened to consider the proposals for the CVA. The moratorium ends upon acceptance of the CVA.

The debt moratorium sections in this website should be consulted for a fuller overview

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