why do creditors chose IVAs? to lose their money?

Galeeno

Howcome Creditors accept people to go into IVAs, when the money is written off?

Something to do with a better option than bankruptcy? which they would NOT prefer the person to go into?

why is bankruptcy worse ? from the creditors' point of view ?

Find_The_Real

Because in bankruptcy the creditors generally get a much smaller percentage than being paid in an IVA. An IPA if there is one only lasts for 3 years max whereas an IVA lasts for at least 5 plus there is the option of equity release or a further year to be paid if not.

Basically a lot less money is written off in an IVA. Plus there is a longer period for there to be any windfalls in a IVA which would have to go into it and lastly the PPI issue as you don't get to see any of that either.

mjm3346

They also have the option to go down the bankruptcy route if the IVA fails.

Anondebtadvisor

In a bankruptcy the trustee fees and much higher than in an IVA which means less money goes to creditors

Vikipollard

In an IVA my creditors received 42p in the £.

In bankruptcy, they would have got less than 14p in the £.

It's a no-brainer for the creditors when you look at it like that.