The Standard Term: 60 Months
The vast majority of IVAs run for 60 months (5 years). This is the standard term used across the IVA industry and reflects a balance between what is affordable for debtors and what offers a reasonable return to creditors.
Homeowners: Potentially 72 Months
If you are a homeowner and are unable to release equity from your property in year 4 (due to being unable to remortgage), your IVA will typically be extended to 72 months (6 years). This additional year of payments compensates creditors for the equity they could not receive.
Can an IVA Be Shorter?
Yes, in some circumstances:
- Lump sum IVAs — If a single lump sum is available upfront (from a family member, inheritance, etc.), a shorter-term or even single-payment IVA may be structured. These can sometimes complete in 1–2 years.
- Full and final settlement — If you come into money during your IVA, you may be able to offer an early settlement and complete the IVA ahead of schedule.
Payment Breaks
If you experience temporary financial hardship (illness, job loss, maternity leave), your IP may agree to a temporary payment break of one to three months. These missed payments are usually added to the end of the IVA, extending it slightly. Always inform your IP proactively — do not simply stop paying.
Key rule: Communication is everything. If your circumstances change — income up or down — tell your IP immediately. Proactive contact prevents problems; silence causes IVAs to fail.
Annual Review
Every year, your IP will conduct an annual review of your income and expenditure. If your income has increased significantly, your monthly contribution may be increased proportionally. If your income has fallen, it may be reduced. This review is standard and built into your IVA terms.
Free debt advice: For personal advice tailored to your situation, contact MoneyHelper (0800 138 7777), StepChange (0800 138 1111), or Citizens Advice — all free, all regulated.