IVA Question
Why would a creditor allow my to write off a proportion of the money I owe and accept an IVA proposal?
It's the lesser of 2 evils, the other one being Bankruptcy. The IVA must offer a higher return to creditors than could otherwise be expected if you were to be made bankrupt. Where contributions from income are being made, IVA’s are generally expected to be for a period longer than that in bankruptcy, i.e 5 years as opposed to 3 years. The 5 year period is often required by creditors in return for allowing the debtor to avoid bankruptcy.