Both the government as well as other financial institutions promotes Individual Voluntary Arrangement (IVA) to facilitate easy settlement of dues outside the gambit of the lengthy and tedious formal bankruptcy procedures. To achieve this objective, free Individual Voluntary Arrangement (IVA) help centers are established to advice the insolvent debtors in their future course of action in case they wish to avoid bankruptcy proceedings. Apart from the government sponsored or public institutions, a large number of private financial institutions, firms and financial consultancies offer free Individual Voluntary Arrangement (IVA) advice to the debtors desirous of entering into an IVA contract with their unsecured creditors. If the free IVA advice is found to be helpful and relevant by the debtor, he may avail the services of the same institution in executing the complete IVA process. This business opportunity drives the various financial institutions to offer free IVA advisory services to their customers. An Individual Voluntary Arrangement (IVA) is a legal contract between the debtor and the creditors supervised by a licensed Insolvency practitioner that outlines the terms and conditions for repayment of an outstanding debt.

In this regard, advising a customer regarding an IVA not only entails drafting the contract but also involves providing the services of a Licensed Insolvency Practitioner. In this way, providing free IVA advice to the customers brings more business to the financial institutions and is considered desirable by them. This makes them view the act of providing free IVA advisory services as advertisement or promotional expenditure incurred in the process of soliciting IVA clients. Further, an insolvent client may decide to take up an IVA loan thereby increasing the business opportunity for the financial institution. 

Taking up an IVA loan requires regular repayments without failing on the part of the insolvent debtor. Any default in the repayment of an IVA loan installment may lead an IVA supervisor to initiate bankruptcy proceedings against the debtor that may render the whole purpose of going for an IVA useless. The terms of agreement of an IVA loan are such that an insolvent debtor is required to give as much as possible in a manageable way towards the repayment of an IVA loan. In this way, Free IVA advice helps the customer or the insolvent debtor as well as the advisory institution.