How long does an IVA last?

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 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.

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.

Need support?

We know IVAs can feel complex – we’re here to answer any questions you have. 

Get debt help online or call us on 0800 316 1833 for a confidential conversation.