Most IVAs last 5 years (60 months). You make monthly payments for 60 months, then any remaining debt is written off.
But your IVA can be extended to 6 years (72 months) if you’re a homeowner and can’t release equity from your property in the final year. You can also finish early if you make a lump sum payment to settle the debt.
Standard IVA Length: 5 Years#
When you apply for an IVA, your Insolvency Practitioner (IP) will propose a 5-year term. This is the standard length for most IVAs in the UK.
You’ll make monthly payments for 60 months based on what you can afford. At the end of 5 years, any remaining debt is legally written off — even if you’ve only repaid a fraction of what you owed.
For example:
- You owe £20,000 in total
- You pay £150 per month for 5 years (£9,000 total)
- At the end of 5 years, the remaining £11,000 is written off
This is why IVAs are appealing for people with large debts they can’t realistically repay in full.
When IVAs Extend to 6 Years#
Under the 2025 IVA Protocol, if you’re a homeowner with more than £10,000 equity in your property, you’ll need to try to release some of that equity in your final year.
Your IP will ask you to remortgage or take out a secured loan against your property to release equity. The money released goes into the IVA and is shared among your creditors.
If you can’t remortgage (because lenders won’t approve you due to your credit rating), your IVA automatically extends by 12 months to 72 months total. You continue making your monthly payments for the extra year instead of releasing equity.
This is common. Many people in IVAs can’t remortgage because their credit rating is too damaged, so most homeowner IVAs end up lasting 6 years.
If you’re not a homeowner or you have less than £10,000 equity, this doesn’t apply to you. Your IVA will end after 5 years regardless.
When IVAs Get Extended Beyond 5-6 Years#
There are other situations where your IVA term can be extended:
Missed Payments#
If you miss payments during your IVA, those missed months get added to the end of your term.
For example:
- You miss 3 months of payments due to job loss
- Your IVA term extends from 60 months to 63 months
- You’ll continue paying until all 60 payments are made
If you miss more than 3 payments in a row without contacting your IP, they might issue a Notice of Breach. This gives you up to a month to catch up. If you don’t, your IVA could fail.
If you’re struggling to make payments, contact your IP immediately. They can arrange a payment break or reduce your payments temporarily if your circumstances have genuinely changed.
Payment Breaks for Hardship#
If you experience genuine financial hardship — like redundancy, serious illness, or a major drop in income — your IP can grant a payment break.
During a payment break, you don’t make IVA payments for a set period (usually 1-3 months). But those months get added to the end of your IVA term.
For example:
- You lose your job and can’t pay for 3 months
- Your IP grants a 3-month payment break
- Your IVA term extends from 60 to 63 months
Payment breaks are different from missed payments. With a payment break, you’ve contacted your IP and arranged it in advance. Missed payments happen when you just stop paying without telling anyone.
Changes in Living Expenses#
If your living expenses increase significantly — like a new child, higher rent, or increased care costs — your IP might reduce your monthly payment and extend the IVA term to compensate.
For example:
- Your monthly payment was £200 for 60 months (£12,000 total)
- Your rent increases by £100/month, so your IP reduces your payment to £150/month
- Your IVA extends to 80 months so you still pay £12,000 total
This is negotiated with your creditors. They want to receive the full agreed amount, so if your monthly payment reduces, the term usually extends.
Finishing Your IVA Early#
You can end your IVA before the 5-year term if you make a lump sum payment to settle the debt. This is called a “full and final settlement offer.”
How It Works#
You offer your creditors a lump sum to settle all remaining IVA payments in one go. Creditors usually accept 80-90% of the remaining balance.
For example:
- You’ve paid 2 years of a 5-year IVA (£150/month = £3,600 paid)
- You have 3 years left (£5,400 remaining)
- You receive a £10,000 inheritance
- You offer £4,500 (about 83% of remaining balance) as a full and final settlement
- Creditors accept, and your IVA ends immediately
The money can come from:
- An inheritance
- A work bonus or redundancy payment
- A gift from family
- Savings you’ve accumulated
- Sale of a non-essential asset
Your IP will negotiate with your creditors on your behalf. Most creditors accept full and final offers because they get a lump sum immediately rather than waiting 3+ more years for monthly payments.
Windfalls in IVAs#
If you receive a windfall during your IVA (inheritance, bonus, tax refund, etc.), you’re usually required to pay it into the IVA. The definition of a windfall varies, but anything over £500 is typically included.
But this doesn’t automatically end your IVA. The windfall is added to your total contributions, and you continue making monthly payments until the term ends.
If the windfall is large enough, your IP can propose ending the IVA early with a full and final settlement.
Can IVAs Last Less Than 5 Years?#
Rarely. Most IVAs last at least 5 years because creditors want to see a sustained effort to repay the debt.
The only way to shorten an IVA is to make a large upfront payment or full and final settlement early in the term.
For example, if you have £15,000 in savings or assets you’re willing to use, you might be able to negotiate a shorter IVA term (like 3 years) with higher monthly payments plus the lump sum.
But this is uncommon. Most people who enter IVAs don’t have significant assets or savings — if they did, they’d use them to pay the debt directly instead of entering an IVA.
Can IVAs Last Longer Than 6 Years?#
Technically yes, but it’s rare.
The Insolvency Act 1986 allows IVAs to last up to 7 years, but most creditors won’t agree to terms longer than 72 months (6 years).
Extensions beyond 6 years only happen in exceptional circumstances, like:
- Multiple extended payment breaks due to serious illness
- Major changes in financial circumstances requiring ongoing renegotiation
- Disputes over equity release that take years to resolve
Some IVAs have lasted 8-10 years, but this is extremely uncommon and usually involves complex situations or multiple modifications.
Most IPs and creditors prefer to keep IVAs within 5-6 years because longer terms increase the risk of failure. The longer an IVA lasts, the more likely something will change in your life that makes it impossible to continue.
What Happens If You Can’t Complete Your IVA?#
If you can’t keep up with payments and can’t extend the IVA any further, it might fail.
When an IVA fails:
- You’re back to owing the original debt amounts (minus what you’ve already paid)
- Creditors can restart enforcement action (court, bailiffs, etc.)
- The IVA is removed from the Individual Insolvency Register
- You’ll need to find an alternative debt solution
If your circumstances change and you genuinely can’t afford your IVA anymore, talk to your IP immediately. They might be able to:
- Reduce your monthly payment
- Arrange a payment break
- Extend the term
- Propose a variation to creditors
Don’t just stop paying. IPs are used to dealing with financial difficulties and can often find a solution to keep your IVA on track.
IVA Length vs Other Debt Solutions#
For comparison:
Debt Management Plan (DMP): No fixed term. Lasts as long as it takes to repay your debts in full. Could be 5-10 years or longer. No debt is written off.
Debt Relief Order (DRO): Lasts 12 months. After that, all included debts are written off. But you must have less than £50,000 debt, less than £75/month spare income, and own few or no assets.
Bankruptcy: Usually lasts 12 months before you’re discharged. But restrictions can last longer, and you lose control of your assets during bankruptcy.
IVAs offer a middle ground: longer than bankruptcy or DROs (so you contribute more toward your debt), but shorter than most DMPs (because part of the debt is written off).
If you’re struggling with debt and want to find out what options are available, use our free IVA calculator to see if you qualify and how much debt you could write off. It takes 2 minutes and won’t affect your credit score.
Frequently Asked Questions#
Can I choose how long my IVA lasts?#
Not directly. Your IP proposes a term (usually 5 years) based on your circumstances. Creditors must approve it. You can’t decide “I want a 3-year IVA” unless you can afford higher payments or have a lump sum available.
What happens in the final year of my IVA?#
In your final year, your IP will review your circumstances. If you’re a homeowner with £10k+ equity, they’ll ask you to try to remortgage. If you can’t, your IVA extends by 12 months. If you’re not a homeowner or have less equity, your IVA ends after making your final payment.
Can I pay off my IVA early?#
Yes, if you make a full and final settlement offer that creditors accept. You’ll usually need to offer 80-90% of your remaining balance as a lump sum.
Do payment holidays extend my IVA?#
Yes. Any months you don’t pay (whether due to payment breaks, missed payments, or holidays) get added to the end of your term.
What if I can’t afford my IVA payments anymore?#
Contact your IP immediately. They can negotiate with creditors to reduce your payment, arrange a payment break, or extend your term. Don’t just stop paying.
Will my IVA automatically extend to 6 years?#
Only if you’re a homeowner with more than £10,000 equity and you can’t release any of that equity through remortgaging in your final year. If you’re not a homeowner or have less equity, your IVA ends after 5 years.
If you’re struggling with debt and want to find out what options are available, use our free IVA calculator to see if you qualify and how much debt you could write off. It takes 2 minutes and won’t affect your credit score.