How Long Does an Individual Voluntary Arrangement (IVA) Last?

Debt can be crushing and people across the United Kingdom struggle with the burden that comes with debt. On top of that, many people are experiencing harassment from debt collectors on a daily basis.

Individual Voluntary Arrangement, or IVA, is one of the solutions available to you in order to try to make arrangements to pay off the debt you owe and keep the debt collectors at bay. If you are wondering how long an IVA lasts, it can vary depending on several variables, including the amount of debt you have. It can be a challenge to set up an IVA, even with an insolvency practitioner, and many times people become overwhelmed.

An IVA is one way to pay back your debt on a timeline established by you and your insolvency practitioner, who is an individual that is qualified to manage the situation. The IVA is agreed upon by the debt collectors as well to ensure everyone is on the same page and no further harassment will occur.

If this is too much information to digest at the moment, DoNotPay can help. Read further to learn everything you need to know about getting an IVA and how long it can last. We are here to help you achieve your goal to be debt-free and financially stable.

How Long Does an IVA Usually Last?

An IVA is, ideally, a flexible debt solution option that enables you to create a payment plan to address your financial situation and help bring about a positive solution. That being said, an IVA can vary in the length of time they are established to fulfil the parameters of the payment. An IVA can last a couple of weeks to seven years.

The Insolvency Act 1986 states that "an IVA can last a maximum period of seven years, though in practice most IVAs are shorter."

The Three Main Types of IVA

1. Full and Final IVAs

This type of IVA is proposed based upon the debtor having little disposable income to offer on a continual basis. The debtors usually do have some access to a lump sum to offer the debtors.

If a lump sum is offered and accepted, the IVA can be approved and completed quickly, and the debt settled. Take note - The fact the debtor has undertaken an IVA remains on the debtor's credit file for the same length of time as any other IVA

2. Five Year IVAs

This IVA has a usual duration of five years. It is important to make agreed-upon payments on a regular basis as outlined in the IVAIt is likely at the end of five years if payments have been regularly and reliably made, the remaining debt will be forgiven and written off.

Sometimes creditors will demand a sixth year for IVA if necessary. This may occur when one (or all ) of the below qualifications are met.

• In lieu of equity in a property that can't be released
• Sums of money being offered to provide too low a dividend to creditors

3. Variations

An IVA repayment period can be extended if creditors require the term to be adjusted.

An example would be missed IVA payment that has to be added to the end of the IVA extending the terms.

Putting an IVA together, especially when it comes to determining the time of length required, can be challenging even in the best of circumstances. DoNotPay can help you to establish an IVA length of time that is beneficial to you, your debtors, and a positive financial situation for you and your family.

To try and set up your IVA connect with them through:

What Happens if You Don't Pay Your Debt?

Drowning in debt can be overwhelming for anyone and the temptation to just walk away from it all can loom large in your mind. Even sifting through payback options and financial consolidation can seem complicated and frustrating in the best of times. That being said, companies have guidelines and timelines established that are put into place to try to ensure they receive the money owed to them, even if you attempt to walk away from the debt.

The following is one possible set of options you have when it comes to repayment of your debt

1. Contact the Company - this has several important points that may be established by contacting the company you are indebted to directly such as the following:

• Verify the debt amount and establish if there is a lesser amount they would be willing to settle for.
• See if it is possible to dispute the collections and all fees associated with collections.
• Make a payment (if possible)and establish a payment plan.

2. If you choose not to pay your debt or take any action toward doing so, you could:

• Get sent to collections
• Get taken to court
• Face legal ramifications depending on the debtor and how far they want to go toward prosecuting.

Debt can be crushing and most people struggling to make ends meet can find endless debtor calls exhausting and overwhelming. This is where DoNotPay can step up and help you.

DoNotPay can help you to establish an IVA, with a duration that is amicable for your situation, and communicate that in a manner that is positive and respectful, and most of all effective when dealing with creditors.

Get Help With Your IVA Duration Length With DoNotPay

Managing your debt can be one of the most overwhelming tasks you undertake on a daily basis. Harassment calls from debtors can make that all the more challenging. There is a light at the end of the tunnel, however, thanks to DoNotPay. This robot lawyer can help you identify and create a positive IVA with a workable timeline and be debt-free quickly.

All you need to do to have DoNotPay help is follow these instructions:

1. Search “debt collection” on DoNotPay.
2. Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.
3. Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to a professional trade association.

That being said DoNotPay can also help you to put together a proper IVA, with a useful length of duration with other debt collection agencies such as:

• Moorcroft
• DWP debt management
• Advantis
• Provident Loans
• Marston Holdings
• Lowell Financial
• Amigo Loans

How Else Can DoNotPay Help?

While DoNotPay can help you to create and establish your IVA, DoNotPay can also help you handle many other situations and challenges you face in your life. The following are just an example of the many situations that DoNotPay can help you with

• Small claims court
• Help with bills
• Free trials
• Missing money
• File a Complaint
• How to cancel
• Increase credit limit
• Pay bills online

DoNotPay has a vast amount of skills, contacts, and experience in a variety of industries that can help you to identify and implement a solution to the challenges you may be facing. Sign up today!