IVA : What Happens When My IVA Finishes?

Of the many questions that we are asked regarding Individual Voluntary Arrangements (IVAs) and the processes involved, this question is often overlooked, but we feel it is of real importance.

With the sheer amount of information to be digested it isn't until later that these questions begins to surface.

So:

What does happen when your Individual Voluntary Arrangement (IVA) concludes?

Does it really make you debt free?

Will it be the end of your financial worries?

Will you ever be able to get credit again?

(Take this link to our article about how an IVA effects your credit rating)

Well, to put it quite simply, YES!

You'll be pleased to know that there are no more hoops to be jumped through! There is no doubt that during the early stages of your Individual Voluntary Arrangement (IVA), it will seem as though the Individual Voluntary Arrangement (IVA) will never complete, and that you'll be repaying your debts forever. This is quite natural, but remember, your Individual Voluntary Arrangement (IVA) is a legally binding contract on your creditors, so when you have made all the repayments, your creditors will have no choice but to write-off the remaining balance of your Individual Voluntary Arrangement (IVA) debt. Guaranteed. You will be debt free.

When you pay the final repayment into your Individual Voluntary Arrangement (IVA) fund, and you have successfully completed your Individual Voluntary Arrangement (IVA), you will be debt free. This means that the money you have been paying into the Individual Voluntary Arrangement (IVA) will become available to you to spend on exactly what you like. You will have money in excess of your expenditure, which means financial freedom. No more financial worries.

Once you are free of your debt you can start your finances afresh, possibly for the first time in years. You will have been living within a controlled budget, but will now have extra money each month. For some people the need to reach out for credit again will be unnecessary, indeed, the thought of doing so will seem quite alien.

Take this link to read about learning to live without credit.

However, if you wanted to return to spending money on credit you will have to begin the process of rebuilding your credit rating. Here is a brief explanation of what you can expect to happen.

On the completion of your Individual Voluntary Arrangement (IVA), your Insolvency Practitioner will issue you with a 'Certificate of Completion'. This arrives after your Individual Voluntary Arrangement (IVA) payments have finished. The Insolvency Practitioner will, as part of his final duties, pass a copy of your Certificate of Completion to the Insolvency Service so that they can update their records. Your creditors will be informed of your successful completion of your Individual Voluntary Arrangement (IVA) by the Insolvency Practitioner as well, so you will not be required to contact them.

It is in your interests for you to send a copy of your 'Certificate of Completion' to all the Credit Reference Agencies, to enable them to update their records and show that your Individual Voluntary Arrangement (IVA) has been completed successfully.

It will take some time for your credit rating to rebuild, during which time obtaining credit may be difficult, however, as time moves on getting credit will become easier.

myIVA-Adviser.com strongly recommend you resist the temptation of entering into another credit agreement as soon as your Individual Voluntary Arrangement (IVA) has completed. You should take time to adjust to your financial situation and the benefit of having no Individual Voluntary Arrangement (IVA) payments to make. If you do want to take credit, make sure you have calculated exactly what payments you can actually afford to make with your repayments. If you are in doubt, seek advice from an 'independent' financial adviser.