Hi Debt Advisor, you are right to point out the option of a Debt Management plan. However the issue that I suspect Aligaz will find is that to make a DMP work you need to make a reasonable payment each month and this is what they are currently struggling to do. If such a payment could be made then the IVA would not be at risk.... Even if you can afford to make a sensible monthly payment into a DMP, repaying the debt in full can take many years which I suspect was what they were trying to avoid by doing an IVA.
In terms of how a credit rating is affected, bankruptcy will be registered on your file for 6 years. However if you start a debt management plan your credit rating will be poor until your debt are paid in full which could take much longer. As such, given there is no property to lose I still suspect Bankruptcy is Aligaz's best option if the IVA payments can not be reduced.