How long does an IVA last?
Quick Answer: A standard IVA lasts 5 years (60 months), with possible extension to 6 years.
A typical IVA runs for 60 months (5 years). During this period, you make one agreed monthly payment to your Insolvency Practitioner, who distributes it among your creditors.
In some cases, the IVA may be extended to 6 years (72 months). This usually happens when a homeowner is unable to remortgage their property to release equity in the final year.
The 5-year term is fixed from the date the IVA is approved by creditors. If there are delays in the creditor voting process, the term starts from the date of approval, not from when you first applied.
At the end of the IVA term, assuming you've made all required payments and complied with the terms, your IP issues a certificate of completion. Any remaining balance on the included debts is legally written off at this point.
Some people are able to settle their IVA early by making a lump sum payment. This could come from an inheritance, savings from a third party, or other windfall.
* This information is for general guidance only and does not constitute financial advice.