How long does an IVA last?
IVAs usually last for 5 years (maximum is 7 years)
We receive a lot of calls and emails from the public asking; "How long does an IVA last?"
Please note that an IVA is a very flexible and the length of time they can last can vary from 3 months to seven years. The Insolvency Act 1986 states that an IVA can last a maximum period of 7 years. In reality the longest an IVA lasts for is 5 years if the debtor makes regular monthly payments from income as per the IVA contract.
What factors can change how long an IVA lasts for?
- Is the date of retirement near for the person applying for an IVA?
- The age of person applying for an IVA?
- Special circumstances where the person applying for an IVA such temporary loss of job and so need to make the IVA last longer to make up for the gap in payments.
Can an IVA be extended to last longer or reduced to finish early?
An IVA repayment period can be extended if the creditor requires the term to be varied. An example of this happening if some IVA payments are missed and so have to be added on to the IVA.
To extend an IVA the creditor must make a "Variation Order". A variation order is requested by the IVA Insolvency Practitioner.
Please note that an IVA lasts usually for 5 years or 60 months. Every IVA is different a and the length of time is dependant on the individual case. An IVA usually lasts for a period of five years At the end of the period the balance remaining on your debts is written off by your creditors, and you are completely debt free (subject to terms and conditions). Using the IVA as a method of debt help removed the disadvantages of bankruptcy, such as not being able to act as a company director or being publicly examined in court. Click here to read more about IVAs.
The advantage of an IVA is it allows you to pay back a proportion of your debts in a realistic time period and most importantly at a level the person can easily afford.
Why do IVAs last for so long?
The IVA creditors like an IVA to last longer because bankruptcy payments usually last for 3 year. The IVA creditors are writing off a lot of debt so want to see a five year commitment from you.
Is there ever an instance where an IVA doesn't have to last so long?
IVAs can be for a much shorter time frame. There is a type of IVA that can last about 12 weeks. This is called a “Full and Final Settlement IVA" .
For example, we often get calls from the public where they have a friend, relative or third party that will assist by offering a lump sum of money in full and final settlement of the debts.
Full and Final Settlement IVA deals
In return for a lump-sum payment the IVA creditors will actually agree to writing off up to 80% of the debts. The write offs are generally higher in lump-sum IVAs as the money is received quicker over a shorter period of time.
These type of IVAs last about 3 months to get the agreements up and running then between 1-2 months to arrange the money if needed.
IMPORTANT NOTE: An IVA must provide a better monetary return than would be achieved under bankruptcy.
If are would like to know how long does an IVA last or just discuss an IVA in general please complete the following form or telephone freephone 0800 074 6918.
IVA Knowledge Base Menu
- IVA Knowledge Base Home Page |
- Why should I choose an IVA? |
- What will an IVA cost? |
- Are there any additional fees after my monthly contributions to my IVA? |
- Is an IVA the best option? |
- Will I lose my home, house or property in an IVA? |
- How will an IVA affect the equity in my house, home or property? |
- Can I still obtain a mortgage with an IVA? |
- What happens if some of my creditors disagree with the IVA? |
- Is the IVA registered on your credit file? |
- Are there any disadvantages to an IVA? |
- What happens if I come into money whist I am in an IVA? |
- Can I include family members that I owe money to in an IVA? |
- Can I still have a bank account with an IVA? |
- How do I settle my IVA early? |
- Will an IVA affect the people I live with? |
- Can self employed people do an IVA? |
- Can I get an IVA while living abroad? |
- Who can enter an IVA? |
- Will I lose my house with an IVA? |
- Can I stay in business with an IVA? |
- I am a professional person will it affect my position with an IVA? |
- Will an IVA become public knowledge? |
- How long does an IVA last? |
- Which creditors can be included in an IVA? |
- Can I enter into an IVA if I have already received a Statutory Demand? |
- Can I obtain an IVA if a Bankruptcy Order has been made against me? |
- What happens if I don't keep up the payments on my IVA? |
- What happens once I finish paying my IVA? |
- Can I enter an IVA if I already have CCJs against me? |
- Does it make a difference if I am a homeowner with an IVA? |
- Do I have to tell my partner if I do an IVA? |
- Does an IVA cover all of my debts? |
- What is the difference between a secured and unsecured debt? |
- Do creditors have to accept an IVA? |
- Can an individual creditor refuse to accept an IVA? |
- Will the IVA prevent my creditors taking further recovery action? |
- What if my circumstances change whilst in an IVA? |
- Can I cancel the IVA once it is set up? |
- What happens if I just stop paying into the IVA? |
- How long does it take to set up an IVA? |
- Will interest and other charges be frozen while the IVA is being set up? |
- Can a creditor take further recovery action before the IVA is approved? |
- What happens if the IVA is not approved? |
- What Does IVA Stand For? |
- How do I work out how much I can afford to pay per month in to an IVA? |
- I am considering an IVA. How does it work? |
- Do I have to attend IVA meetings, or can this all be done by post? |
- What do creditors expect from an IVA? |
- How likely is it that an IVA will be accepted? |
- Are all creditors forced to accept the IVA majority decision? |
- What happens if the creditors don't like the IVA deal? |
- What do I do if the IVA is rejected? |
- IVA - Individual Voluntary Arrangement |
- I've buried my head in the sand, now I've got a bankruptcy petition hearing next week. Can I do an IVA at this late stage?
- Will an IVA really write off all of my debts?
- Will I live in poverty for the duration of the IVA? |
- What if I win the lottery whilst in an IVA? |
- What if I get a pay rise whilst in an IVA?
- Will my IVA appear in the newspapers? |
- Will people know about my IVA? |
- Will I ever be able to get credit again after an IVA? |
- Is an IVA more expensive than just going bankrupt?
- What will happen to my house in an IVA? |
- What will happen to my furniture in an IVA? |
- What will happen to my car in an IVA? |
- I run a business. What will happen to my business in an IVA?
- Will my partner have to contribute to my IVA?
- My partner and I have joint debts. Can we lump them all together in the same IVA?
- What happens if I'm unable to keep up with the IVA payments?
- What happens at the end of the IVA arrangement?
- Are there any upfront fees with an IVA? |
- Why should I consider an IVA over bankruptcy? |
- What are the advantages of an IVA over a debt management plan? |
- How will an IVA Improve my life? |
- Is there immediate relief if I do an IVA? |
- How much debt do I need to do an IVA? |
- What types of debt can an IVA deal with? |
- Can utility bills be included in an IVA? |
- Will an IVA stop collection calls? |
- Will an IVA freeze my interest rates? |
- Will I have to sell my house if I do an IVA? |
- Will an IVA stop home repossession? |
- How will An IVA affect my home equity? |
- Can I keep my car if I do an IVA? |
- What assets might an IVA affect? |
- Will an IVA be reflected on my credit file? |
- Do I need to include all my creditors in an IVA? |
- Can I apply for credit while I'm in an IVA? |
- Will I need to change bank accounts in an IVA? |
- What will my monthly payment be on an IVA? |
- What if I am unable to keep up with my payments in an IVA? |
- Can my IVA payments go up? |
- Under what circumstances can I reduce my IVA payment? |
- Who will know if I do an IVA? |
- Will my landlord need to know if I do an IVA? |
- I've decided to do an IVA, should i stop paying my creditors now? |
- Will an IVA affect my employment or my ability to get a job? |
- I'm in an IVA and I've lost my job, what can I do? |
- What situations would prevent me from doing an IVA? |
- I've been told I can't do an IVA, what should I do? |
- Can I exit out of my IVA before five years? |
- Under what circumstances can an IVA proposal be rejected? |
- What percentage of IVA's are blocked by creditors? |
- What happens if my IVA fails? |
- What if I can't remortgage as per my IVA proposal? |
- My husband and I are considering an IVA as a solution to our £25,000 debt |
- What happens if I change from being employed to self employed during my IVA? |
- If my partner enters an IVA will I have to sell my car because it is registered in my name? |
- What happens if my income rises during an IVA, would the creditors want all of the increase? |
- What is the minimum level of debt for an IVA? Is it 12000 or 15000 pounds? |
- Can I keep my home if my IVA is accepted? |
- Will I have enough money to live if I go for an IVA? |
- Information on the IVA procedure in the UK |
- IVA Questions |
- IVA Specialists |
- IVA Company |
- IVA Info |
- IVA Companies - What makes a good IVA Company? |
- IVA Debt Solution |
- Can I include HM Inland Revenue and Customs (TAX) debt in an IVA? |
- IVA Info |
- IVA-site
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]