How long does an IVA last?

From 1^st July 2025, most Individual Voluntary Arrangements (IVAs) will last five years (60 months) – but some may be extended to six years (72 months) depending on your circumstances.

Homeowners and equity – why an IVA may be extended

If you own a home and have £10,000 or more in equity, your IVA will typically be extended by 12 months instead of requiring you to release that equity through remortgaging.

How equity is calculated

Equity is worked out by taking 85% of your property’s market value, then subtracting your remaining mortgage and any secured loans.

If your share of equity is £10,000 or more, your IVA will normally:

Be extended to 72 months, with no requirement to remortgage.
Allow you to keep your home, while contributing more over time.

If your equity is under £10,000, the IVA stays at the standard five years, with no extension required, unless:

You miss payments and need more time to catch up.
Your income drops and your monthly payments are reduced.
You and your Insolvency Practitioner (IP) agree to adjust the plan to make it more sustainable.

Can I finish my IVA early?

Yes – if you’re able to offer a lump sum (from savings, a family gift or another source), your creditors may agree to end your IVA early in a full and final settlement. This can be discussed at any time during your IVA.

What happens after my IVA ends?

Your included unsecured debts are written off.
You’ll receive a Completion Certificate.
The IVA stays on your credit file for six years from the approval date, even if the plan lasts longer.
You’re free to move forward without the pressure of those debts.