A partnership that gets into financial trouble can use a Partnership Voluntary Arrangement to restructure its debt and come to a new agreement with its creditors.
The key to a partnership in trouble is to realise you need a Partnership Voluntary Arrangement and get on with doing it.
Quite often the arrangement will involve the individual partners doing their own Individual Voluntary Arrangements.
The usual terms of a Partnership Voluntary Arrangement are:
- Freezing existing unsecured debts such as PAYE, Business Rates.
- A monthly regular payment to cover all existing debts over a period of 1 to 5 years.
- A partial debt write off – so debt being forgiven.
- No interest.
A Partnership Voluntary Arrangement will be drafted by you with our help as Licensed Insolvency Practitioners. Find out more about voluntary arrangements.