Answers · UK 2025/26
How long does an IVA last and what happens when it ends?
A standard IVA lasts 5 to 6 years. If you own a home you are typically asked to release equity in year five, which can extend the arrangement by 12 months. On successful completion, remaining eligible unsecured debt is legally written off and you receive a completion certificate.
Full answer
**Standard IVA duration** Most IVAs run for 60 months (5 years). However, if you own a property with equity, your insolvency practitioner will ask you to remortgage or release equity in month 54. If you cannot remortgage — for example because lenders decline due to your IVA — the arrangement is typically extended by 12 months instead, making it 72 months (6 years) in total. **Example: Sarah, 42, homeowner with IVA** Sarah's IVA starts in July 2026 and is due to complete in July 2031. In January 2031 (month 54) she attempts to remortgage to release £15,000 equity. Lenders decline because her credit score is low. Her IP extends her IVA by 12 months with no extra monthly payments. She completes in July 2032 and the remaining £22,000 debt is written off. **What triggers early termination?** An IVA can complete early if you receive a windfall (inheritance, redundancy payout, or bonus) and offer it to creditors as a full and final settlement. Creditors must agree — they typically accept 70–80p in the pound as a full settlement. **What if the IVA fails?** If you miss payments or breach the terms, your IP can revoke the IVA. Creditors can then pursue you for the original debt (minus payments made) and may petition for bankruptcy. It is critical to contact your IP immediately if your circumstances change. **What happens at completion?** When your IVA completes successfully: - Your IP issues a completion certificate - The arrangement is removed from the Insolvency Register within three months - Remaining included debts are legally extinguished — creditors cannot chase you - Your credit file still shows the IVA for six years from the start date (not the end date) **Credit recovery after IVA** After year six your IVA drops off your credit file entirely. Many people find they can obtain basic bank accounts and secured credit products again before this point, though rates will be higher until the record clears.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.