That is why it is important to be absolutely sure that an IVA is suitable and can be completed with confidence. A lot can happen in five years, such as job loss.
How long does an iva last?
In some circumstances, if you are able to offer your creditors a lump sum in settlement of your debts, an IVA can last for less than 5 years. This can either be via a windfall, third party assistance or more commonly by sale or remortgage of a property.
An IVA can last longer than five years if you need to make up for missed or reduced payments or if your proposal states that the IVA must be extended if you are unable to release any equity at the end of the fifth year.