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Entering into and maintaining payments to the IVA will demonstrate to your creditors your commitment to repay a proportion of your debts by way of a formal legally binding arrangement. For them it will allow a percentage of the debt to be repaid back, with their approval.
When an IVA has been proposed to your creditors, they will also have received a comparison to Bankruptcy. This shows the creditors what they could receive back from both options. As the fees in an IVA are generally a lot less than in Bankruptcy, the return for the creditors in an IVA, is better.