How long does an IVA last?

An Individual Voluntary Arrangement (IVA) usually lasts for 5 years, and it can be extended if property is involved. But once it’s finished you will be completely free from the debts involved and you will no longer have the worry of them.

Why might my IVA be extended above 5 years?

If you are unable to remortgage your property at the end of the five-year arrangement, you will have your IVA extended for a further year.

Your Insolvency Practitioner will take a look at what you have left outstanding to repay, and evaluate your assets. At this point they may require any property you own to be remortgaged.

Sometimes a mortgage lender won’t allow you to remortgage– because your debts and IVA are affecting your credit rating. But don’t worry, this is very common and the reason why most IVAs go on to continue for another year – with extra payments.

If your IVA is finished it stays on your credit report for 6 years from the start date of the IVA – then it’s deleted entirely.

Is there a maximum length of time an IVA can last?

No, an IVA can go on for longer than 6 years if you miss payments or reduce them.

Your arrangement will be extended if your Insolvency Practitioner or creditors believe you haven’t paid enough to cover your debts. If this happens, your Insolvency Practitioner will re-evaluate your situation and help you work out a way to adjust your payment amount.

You can also reduce the length of your IVA if you can pay a lump sum of the debt owed. If you’ve received a windfall or help from family you can let your Insolvency Practitioner know, and they’ll make sure this surplus income is factored into your repayment plan.

Contact a knowledgeable member of our team today at PayPlan for free, impartial advice.