This is similar to a Company Voluntary Arrangement, and is usually used by larger partnerships as this is likely to be a cheaper option than the partners undertaking separate Individual Voluntary Arrangements (IVA's).

Any partnership that has carried on business in England or Wales in the previous three years can propose a PVA.

A PVA may protect a partner's personal assets from partnership creditors, it will not protect those assets from partnership creditors who do not participate in the PVA.

For this reason, it is often necessary for individual partners to also propose an IVA. If you want to know more about the information needed in a partnership voluntary arrangement proposal, please Click here.

To read a case study on partnership voluntary arrangements please click here.