{"id":10986,"date":"2012-08-05T11:55:50","date_gmt":"2012-08-05T10:55:50","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=10986"},"modified":"2020-08-25T15:28:53","modified_gmt":"2020-08-25T14:28:53","slug":"how-long-will-my-iva-last","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/how-long-will-my-iva-last\/","title":{"rendered":"How long will my IVA last?"},"content":{"rendered":"\n<p>Most IVAs have a typical duration of five years from commencement.  However the duration will depend on the debtor\u2019s circumstances,  particularly the key factors of assets, debts, income and expenditure  and the attitude of creditors as expressed at the meeting of creditors  which precedes the commencement of the IVA. In practice the debtor\u2019s IVA  proposal spells out the proposed duration and this may be as short as a  few months to as long as seven years. <\/p>\n\n\n\n<!--more-->\n\n\n\n<p>A shorter duration IVA may be proposed based on what is often  described as a \u2018one-off\u2019 proposal. This is where the main contribution  to be made by the debtor is a lump sum. In such cases the lump sum may  come from the proceeds of sale of a property (owned by the debtor or by a  third party who is prepared to help), the release of equity by  remortgage of property, monies advanced by the debtor\u2019s spouse or by  other members of the debtor\u2019s extended family. If the debtor has regular  disposable income as well as assets the IVA may well be a combination  of a lump sum and monthly contributions from income and in such a case  the duration could be five years or longer.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"772\" src=\"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/08\/Fotolia_54918574_M-1024x772.jpg\" alt=\"Reading about an IVA\" class=\"wp-image-10995\" srcset=\"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/08\/Fotolia_54918574_M-1024x772.jpg 1024w, https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/08\/Fotolia_54918574_M-300x226.jpg 300w, https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/08\/Fotolia_54918574_M-768x579.jpg 768w, https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/08\/Fotolia_54918574_M.jpg 1587w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Frequently however, the availability of the lump sum may be dependent\n on the debtor\u2019s capacity to repay the source of the lump sum (family or\n re-mortgage provider) from income and in some cases the debtor\u2019s \ndisposable income would be largely or fully committed for that purpose. \nIf that is the case, the proposed duration of the IVA could be \nrelatively short. Two other factors may affect the duration of the IVA. \nCreditors may seek to have the proposed duration extended so as to \nenhance the dividend or to address potential equity which may build up \nin the debtor\u2019s property over the normal five years duration. The second\n factor is that the debtor\u2019s financial circumstances may change for the \nworse during the life of the IVA and the proposed monthly contributions \nmay have to be reduced. One solution to this problem which is often \nproposed is to extend the duration of monthly payments so as to achieve \nthe dividend originally proposed. The mechanism to do this is for the \nsupervisor to call a \u2018variation meeting\u2019 of creditors so that the \nduration may be extended.<\/p>\n\n\n\n<p>In general IVAs last five years with a small percentage having a much\n shorter duration of as little as six months and an even smaller \npercentage lasting six or seven years.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Most IVAs have a typical duration of five years from commencement.  However the duration will depend on your circumstances.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-10986","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=10986"}],"version-history":[{"count":5,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10986\/revisions"}],"predecessor-version":[{"id":13247,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10986\/revisions\/13247"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=10986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=10986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=10986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}