IVA not only protects a borrower in his social and economical problems but also protects the creditors to get their money back through a legal process. That is why most of the creditors agree on accepting IVA rather than insisting upon bankruptcy. IVA offers better security features for creditors which ensure loan repayment within specified period of 5 years. But in some cases where creditors feel skeptical about IP’s legal standing and find that the chances of IVA success seems to be unsure then they reject the IVA proposal completely. So an IVA must be administered by licensed IP and must regard the creditor’s right to get their approval easily.
