If threatened to fail you work with your IP to attempt to rectify the problem. If it actually does fail you will be back to square one and creditors will, most likely, add back lost interest, which will probably negate any dividend that has been paid over.
Some arrangements allow for an IP to petition for bankruptcy.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
