My IVA is nearly complete, what happens now?

An IVA generally lasts for up to six years and if you’re coming to the end of the term, you’re probably wondering what happens next. Once the process is complete and the last payment has been finalised by your insolvency practitioner (IP), you will be free of the debts included in your IVA.

Living on a strict budget for such a long time is tough but it gives some the opportunity to get their finances back on track. For others, it may have helped to establish good habits to keep out of the red. There is not much for you to do and there is not much you can do when an IVA comes to an end, but there are some things to keep in mind.

• Before the last payment, your IP will check all payments to date and if everything is ok, you’ll make your final payment and the IVA will be complete.
• Once completed and approved, you’ll receive a completion certificate for your IVA confirming that it has finished and debts have been cleared.
• You will not have to notify your creditors that your IVA is now completed as your IP will do this for you when you make your last payment.
• An IVA will stay on your credit file for six years from the date of approval and it is likely it may affect your credit rating even after it has been removed.
• After your IVA has finished, you should start looking into rebuilding your credit score by keeping on top of payments of bills and any secured debts you have. You could also consider using a credit card to build up a better picture of your financial reliability. Only take out a credit card if you can afford to make the minimum repayments on time, it is worth setting up a direct debit for this, and be aware that the interest rate will probably be significantly higher.
• Check the insolvency register to make sure you have been removed from there as you are no longer in an insolvency procedure. It can take up to three months for your name to be removed but do query this with them if it has been longer.

Otherwise, make sure you enjoy being debt free!

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