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How long does an IVA last for?

Wed 25th July 2012

The simple answer for how long an IVA (Individual Voluntary Arrangement) lasts is five years.

In the majority of cases someone entering into an Individual Voluntary Arrangement will make sixty monthly payments meaning that the full length of their IVA from start to finish is five years.

Not all IVAs last for this period of time however and there are some exceptions -

IVAs shorter than five years

One type of Individual Voluntary Arrangement which lasts for less than five years is a Full and Final IVA. In a Full and Final IVA rather than paying off your debts over many months you instead settle your debts with a one off lump sum payment. You make a single payment and in return your creditors agree to write off any remaining unpaid debt.

Similarly if during your IVA you have a sudden windfall, such as from a lottery win or inheritance, then you may be able to end the arrangement early by offering a lump sum. 

IVAs longer than five years

Should your financial situation worsen then in some circumstances you may be able to increase the length of your IVA. If you find that you can no longer keep up with your repayments you should speak to your Insolvency Practitioner who can apply for a variation order. Your creditors may agree to accept lower repayments on the basis that you make them for a longer period of time. There is still however a legal maximum length of an IVA of seven years.

Royal Exchange provides professional debt advice to individuals throughout the UK. If you have any questions about IVAs or any other financial problem call us today on 0800 028 4422. Alternatively complete the enquiry form and one of our advisors will call you back.


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