www.iva.co.uk

Is the time period always set at 5 years to pay off the money you owe when you go into an IVA?

Yes this is the mamimum time that you have to pay off an IVA. They say maximum as if you happen to win the lottery or something.... We can wish... Then it can be paid off early with a lump sum

Just to confuse people - an IVA can run for longer than 5 years in certain circumstances, sometimes if it is not possible to release equity from a property.

Onwards and upwards!!!
View my blog at: http://skippy13.blogs.iva.co.uk/

Our proposal is for 6 years, the payments are ok but do increase and I am a bit worried about the last 16 months, it is very high, almost double the first few years but we should have finshed paying off our cars and an overpayment from the Tax Credits by then, so I think they presume we will have more disposable income by then!!

the iva that has been proposed im my case is at a lower amount for the first year then goes up in another amount for years 2-6.

on paper it doesn't appear too bad but whatever you do get at least 2/3 different companies to look at your case.

good luck.

Hi
Sarah is right in that MOST IVAs are proposed over 5 years but can be proposed/ extended for reasons including equity release,meeting a minimum dividend and problems during the original proposal such as missed or reduced payments.My own IVA was extended for 15 months.[6 years 3 months total]
regards

I don't think there's anything in the legislation that requires an IVA to be any particular length. As neverending says 5 years seems to be the norm, but why this has come about I'm not sure.

Just Wondering. . .

'5 years sticking my head into the Lion's mouth of debt !'