What happens at the end of an IVA? IVA Issue
Summary: What happens at the end of an IVA? - This article explains the end process of the IVA and next steps for the Insolvency Practitioner and debtor.
The end of an IVA
Providing you stick to the terms of an IVA arrangement your debts will be cleared and you will be able to move on with your life debt free. Once an IVA (Individual Voluntary Arrangement) has been completed, you will be issued with a statement of satisfaction showing that you have fulfilled the requirements of the IVA. In the final year of the IVA, homeowners will be asked to see if any equity in their property is releasable through remortgaging. The Insolvency Practitioner (IP) will guide you on this. No one will be asked to remortgage if it puts them into further financial hardship.
The role of the IP at the end of an IVA
The Insolvency Practitioner will also notify the required authorities and it would be in your best interest to contact the various credit reference agencies, to notify them that you have made a full and final settlement of your debts by completing the IVA. This can then be added to your credit file for anyone to see, should they have need to check it. An IVA normally ends when you have made the last payment per the IVA agreement. Before the Certificate of Completion can be issued, steps are taken to ensure that all payments have cleared, that any funds due to be released from any assets have been paid in and that all dividends have been made to the creditors. This naturally will take time, but usually completes in no more than 3 months.
The surplus income you would then have left each month is now yours to spend on what you wish. The creditors will have no further claim on your income, assets or any windfall. Your credit file may take a little longer to repair - but it surely will. If you do take credit again, then sensible use and up to date repayments will allow you to repair your credit history.