- The percentage of IVAs failing within the first three years decreased for IVAs registered since 2011, compared with those registered before 2008.
- Over 12% of IVAs registered in 2008 and 6% in 2007 were still ongoing, having started around 7 to 8 years earlier.
- IVA failure rates increased for IVAs registered between 2001 and 2007. Failure rates for 2008 and later registrations are uncertain as many are still ongoing.
Between the years 1990 and 2002, inclusive, the percentage of IVAs registered each year that
eventually resulted in termination was around 30% (the lowest figure in this period being 28%
for 2001 registrations and the highest 33% for 1995 registrations).
The percentage of terminations has since followed a generally upward trend from 30% for
2002 to the level for 2007 registrations, which currently stands at 40%. As at October 2015,
30% of IVAs registered in 2009 were still ongoing (Table 1 below), so the percentage of IVAs
registered this year which result in termination is likely to increase going forward.
It is not possible to make direct comparisons between termination rates for IVAs registered
from 2010 onwards, and those registered before, as over half of IVAs are still ongoing for
more recent registrations.
It is usual practice for IVAs to last for five or six years. However, as at October 2015 over 6%
of IVAs registered in 2007 were still ongoing, having started around eight years earlier; and
over 12% of IVAs registered in 2008 were still ongoing, having started around seven years
earlier. There are a number of reasons why IVAs could last for this length of time, such as:
- the individual originally agreeing to an IVA that would last for this length of time;
- payment holidays or other variation of an IVA agreement which has lengthened its original duration;
- IVAs being kept open pending the outcome of Payment Protection Insurance claims