Bankruptcy can last for a year or two and is a legal status that allows for debts to be written off when you are unable to pay. Bankruptcy has a serious impact on your ability to receive credit in the future.
A Debt Management Plan (DMP) is a contract which means you will pay off all of your debts to your creditors. This is usually happens through monthly payments to the creditors.
An Individual Voluntary Arrangement (IVA) is an agreement that you will pay part or all all of your debts off to the creditors. You can make regular payments to pay off the debt and it will give you more options and control over your assets than bankruptcy.