What types of debts can be included in a CVA?

Most unsecured debts can be included in a CVA, making it a highly flexible restructuring tool. These typically include trade creditors, HMRC arrears, rent arrears owed to landlords, and outstanding supplier invoices. In many retail CVAs, landlords are often among the largest creditors, and the arrangement can be used to restructure lease obligations by reducing rents or terminating unprofitable leases. Secured debts, such as mortgages or loans backed by fixed charges, are usually excluded because secured creditors have priority rights over the assets securing their debt. Employee wages and certain statutory payments must also be handled carefully, as employment law provides protections for staff claims. While secured and preferential creditors may sit outside the CVA, they often cooperate if the arrangement preserves business continuity and enhances the likelihood of repayment. The wide scope of debts that can be included is one of the reasons CVAs are particularly useful for businesses with complex creditor structures.