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Debt Free after IVA

Your IVA is completed once you have made all your payments and received a Completion Certificate. Any outstanding debt is then written off and you can start your new debt free life.

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When does your IVA finish?

Your IVA will finish once you have fulfilled all of your agreed obligations. To achieve this you must have made all your agreed payments. This includes any additional payments required due to changes in your circumstances.

In addition you must have carried out any other requirements in your IVA. For example if you are a home owner you will be required to try and release equity from your property.

Once your Insolvency Practitioner (IP) is happy that all of your obligations have been fulfilled they will issue your Completion Certificate. Only after you have received this is your IVA legally over.

Many people mistakenly believe that their IVA is automatically finished once they have made their final payment. This is not the case. It is only finished once you get a Completion Certificate.

What is an IVA Completion Certificate?

A Completion Certificate is a written letter from your IP confirming that you have completed all the obligations within your IVA. It normally states the Arrangement has been successfully completed and your IP is no longer acting as the Supervisor.

It is your proof that the Arrangement is legally over. A copy of the Certificate together with a final report from the Supervisor will be sent to both you and all of your creditors.

You should receive your Completion Certificate within 3 months after you have finished paying your IVA and satisfied all your other obligations.

If you have been waiting for longer than 3 months for your Completion Certificate you should contact your IVA Company. Ask the reason for the delay. If there is no good reason this may be grounds to issue a formal complaint.

What happens to unpaid debt after an IVA is finished?

Once your completion certificate is issued your creditors must fulfil their side of the agreement. They must now write off any debt owed to them that is left unpaid.

They are no longer allowed to take any actions against you to collect their unpaid debt. If any creditor were to try to take legal action to enforce payment it would be thrown out by the Court.

Only remaining unsecured debt included in your IVA will be written off. If you have outstanding secured debt such as a mortgage you must continue to pay this.

If you have unsecured debt that you did not include in your IVA you are still obliged to repay this. Only the creditors that were listed in your original Proposal are obliged to write off unpaid debt.

When does your Credit Rating start to improve?

Approximately 3 months from the date your Completion Certificate was issued your details will be deleted from the Insolvency Register. This removes the formal record of your IVA.

However your credit rating will not start to improve immediately. The record of your IVA will remain on your Credit File for 6 years from the Arrangement start date. This is the case whether you pay it early or not.

Your Credit Rating will only start to improve naturally once the record of your IVA comes off your credit file. However there are things you can do to speed up the process.

After your IVA is completed you should review your Credit File. The issue date of any Default Notices should be no later than the start date of the Arrangement. If any are later you can ask the creditor to amend the date. This will ensure such Notices come off your file at the same time as your IVA.

You can also start to build up a history of using credit responsibly. The best way to do this is to start using a “Credit Repair” credit card. Using the card regularly but paying off the balance in full each month will start to generate a history responsible credit usage on your Credit File.

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