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How long does an IVA last?

Understand how long an IVA lasts, when it may be extended, how equity impacts your arrangement, and what happens once it’s successfully completed.

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Most Individual Voluntary Arrangements (IVAs) will last five years (60 months). In some cases, it can be extended to six years (72 months), depending on your situation.

Why might an IVA be extended?

If you own a home and have £10,000 or more in equity, your IVA will usually run for an extra year instead of you needing to remortgage.

It can also be extended if you miss payments or fail to declare additional income you receive while in an IVA. In these cases, your Insolvency Practitioner (IP) may allow extra time to make up the shortfall.

How property and equity work in an IVA →

How is equity calculated?

Equity is how much of your home you truly own. It’s worked out like this:

  1. Take 85% of your home’s current market value.
  2. Subtract your remaining mortgage and any other secured loans.

If your share of equity is:

  • £10,000 or more – your IVA is extended by 12 months (no remortgage needed).
  • Less than £10,000 – your IVA stays at five years, unless:
    • You miss payments and need time to catch up.
    • Your income drops and your monthly payments are reduced.
    • You and your Insolvency Practitioner agree changes are needed to make the plan work.

Can I finish my IVA early?

Yes. If you can make a lump sum payment (from savings, a family gift, or another source), your creditors might agree to close your IVA early. Any fees would be paid out of the lump sum payment.

Learn more about settling an IVA early →

What happens after my IVA ends?

Thinking about an IVA but unsure what’s right for you?

Get free debt advice online or call 0800 316 1833 to speak to one of our experts. We’ll explain the solutions available, check what you may be eligible for and help you choose the option that best fits your situation. 

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FAQs

What if I become seriously ill?

Please contact us as soon as possible. We know these conversations can feel difficult – but you’re not alone, and our dedicated Vulnerability Team is here to support you with care and practical guidance.

Your Insolvency Practitioner (IP) may speak to your creditors and request early completion of your IVA on compassionate grounds.

What happens if I come into money during my IVA?

If you receive a financial windfall – such as inheritance, compensation or lottery winnings – you’ll usually need to pay all of it into your IVA.

Because your creditors have agreed to write off part of your debt at the end of your IVA, any extra funds must be considered.

If the amount’s large, you may be able to offer an early Full and Final settlement.

If friends or family want to help with a lump sum, creditors may accept it as a settlement offer. It doesn’t have to cover everything you owe, but it must be fair and reasonable.

Can I settle my IVA early?

Yes – you can ask to offer a lump sum as a Full and Final settlement.

  • Your creditors will vote on the offer at a Variation Meeting.
  • Even if accepted, your IVA stays on your credit file for six years from the original start date.
  • It remains on the Insolvency Register for three months after completion or termination.

Early settlement can give flexibility, but you’ll still need to rebuild your credit after it completes.

Can I add debts to my IVA?
Because an IVA is a legally binding agreement, adding new debts can be difficult.

  • Forgotten debts: If a debt was missed at the start, it may still be possible to add it. Sometimes a second Creditors’ Meeting is required if the debt is significant.
  • New debts: If you’ve taken on new borrowing since your IVA began, contact us immediately. We’ll explain your options and what this means for your arrangement.
Can an IVA affect citizenship?
Your IVA will appear on the Insolvency Register, which may be visible during a citizenship assessment. It doesn’t automatically prevent approval – and in many cases, it reflects that you’re actively managing your debts responsibly.

Read more FAQs →

FAQs

What if I become seriously ill?

Please contact us as soon as possible. We know these conversations can feel difficult – but you’re not alone, and our dedicated Vulnerability Team is here to support you with care and practical guidance.

Your Insolvency Practitioner (IP) may speak to your creditors and request early completion of your IVA on compassionate grounds.

What happens if I come into money during my IVA?

If you receive a financial windfall – such as inheritance, compensation or lottery winnings – you’ll usually need to pay all of it into your IVA.

Because your creditors have agreed to write off part of your debt at the end of your IVA, any extra funds must be considered.

If the amount’s large, you may be able to offer an early Full and Final settlement.

If friends or family want to help with a lump sum, creditors may accept it as a settlement offer. It doesn’t have to cover everything you owe, but it must be fair and reasonable.

Can I settle my IVA early?

Yes – you can ask to offer a lump sum as a Full and Final settlement.

  • Your creditors will vote on the offer at a Variation Meeting.
  • Even if accepted, your IVA stays on your credit file for six years from the original start date.
  • It remains on the Insolvency Register for three months after completion or termination.

Early settlement can give flexibility, but you’ll still need to rebuild your credit after it completes.

Can I add debts to my IVA?
Because an IVA is a legally binding agreement, adding new debts can be difficult.

  • Forgotten debts: If a debt was missed at the start, it may still be possible to add it. Sometimes a second Creditors’ Meeting is required if the debt is significant.
  • New debts: If you’ve taken on new borrowing since your IVA began, contact us immediately. We’ll explain your options and what this means for your arrangement.
Can an IVA affect citizenship?
Your IVA will appear on the Insolvency Register, which may be visible during a citizenship assessment. It doesn’t automatically prevent approval – and in many cases, it reflects that you’re actively managing your debts responsibly.

Read more FAQs →

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