Putting it simply, an IVA is considerably better than declaring bankruptcy. In short, these are the main reasons why this is so.
Firstly, there is no social stigma associated with an IVA. Of course if everyone knew there would be, but unlike bankruptcy (which is advertised) you are allowed to keep in the shadows with the IVA.
Secondly, an IVA does not affect your ability to trade. With a bankruptcy on your record, borrowing becomes tough, whilst with an IVA is easier to borrow.
Thirdly, the fees associated with an IVA are considerably less for the creditor and the borrower than the fees for bankruptcy. This is a large positive considering the financial implications.
Fourthly, with an IVA the individual in debt can keep their assets and save them from forfeiture. Unlike bankruptcy there is open access to the individuals home, and assets. This proves to be the defining reason as to why an IVA is considerably more favourable compared to bankruptcy.