Most IVAs run for five years, sometimes six. But the exact length depends on your circumstances, and a few things can make it shorter or longer. Here is what to expect.
A typical IVA based on monthly payments lasts five years (60 monthly payments). The exact term is written into your proposal and agreed with your creditors before it starts.
If you own your home, you may be asked to release some equity towards the end. If you cannot remortgage to do that, the IVA is commonly extended by around 12 months instead, taking it to six years. Payment breaks, agreed if you hit genuine hardship, can also push the end date back, because missed payments usually have to be made up.
If you come into a lump sum, for example from a relative or a redundancy payment, it may be possible to offer a full and final settlement and complete the IVA early. Your creditors would need to agree.
Once you have made all the agreed payments you receive a completion certificate and any remaining included debt is written off. The IVA stays on your credit file for six years from the date it started, and it is removed from the public Individual Insolvency Register about three months after it ends.
An advisor can sketch out a realistic term for your situation, with no obligation. Or try the IVA calculator to picture the payments.
You never have to pay anyone to understand your options. These services are free, independent and will go through every route with you.