Long IVAs

IVAs that are longer than five years are becoming more and more common because they are sensible in certain situations. Six and even seven year IVAs are appropriate when the creditors believe the debtor won’t repay enough of their debt over the typical five year period.

These longer IVAs occur because the standard five year arrangement wwould not provide some of the debtor’s creditors with the artificially high sum they want to see repaid.

Another reason they may be suggested is because certain IVA providers want such high fees that the creditors’ expectations for repayment can’t be met without lengthening the period of the IVA.

While the first situation is understandable, the other two are not ethical because creditors need to judge each IVA based on whether or not its debtor is making a sincere best effort to repay the bill in payments they’re able to afford.

Still, it is true that most IVAs last only five years, but they can be either longer or even shorter. The key is to find an Insolvency Practitioner who is right for your needs and understands your unique financial circumstances.