CVA vs Administration: Which Rescue Route?

When a company is insolvent but viable, CVA and Administration are the two primary rescue tools. Choosing the right one is critical.

Company Voluntary Arrangement (CVA)

A CVA allows you to pay back a proportion of your debts (e.g., 40p in the £1) over 3-5 years. You remain in control of the company. It requires 75% of creditors to agree.

Administration

Administration is a more powerful tool used to block legal action immediately. An Administrator (an Insolvency Practitioner) takes control of the company to restructure it or sell it as a going concern (Pre-Pack Administration). It is more expensive and intrusive than a CVA but offers stronger protection.