What Happens at the End of an IVA?

How an IVA ends

An IVA can end in several ways. The usual and best outcome is that you complete it: you make all the payments the arrangement requires, including any review or equity release terms, for the full term. At that point your practitioner issues a certificate of completion and the remaining balance of the included debts is written off. Your creditorsHow to Deal with Creditors: Communication and NegotiationPractical advice on communicating with creditors, negotiating affordable repayments, and understanding your rights when dealing with the companies you owe.Read more → cannot ask for the written-off amount. The other possibilities are that you pay the arrangement off early, or that it fails because payments stop, in which case creditors may take action again. See our guide to missed IVA payments for what to do if you struggle.

The final year: checks and reviews

Towards the end, your practitioner carries out a final review of your finances. Homeowners with equity may be asked to try to release some, for example by remortgagingHow to Remortgage: A Step-by-Step UK GuideHow remortgaging works in the UK: when to do it, how much it saves, fees, early repayment charges, product transfers and the steps from start to finish.Read more →, and if that is not possible the term may be extended. Your income may be reviewed, and you may be asked to pay extra if it has risen. Do not ignore any request for information. Answering promptly avoids delays to your completion certificate. See IVA for homeowners for how the end-of-term review works.

What you should receive

• A completion certificate or equivalent notice from the practitioner, confirming that the IVA is complete.
• A final report setting out what you paid, what creditors received and any fees.
• Confirmation that the entry on the public register will be removed.

What happens to your records

The Individual Insolvency Register is the public list of IVAs. GOV.UK says your entry is removed three months after the IVA ends. Your credit fileHow Credit Scores Work in the UKHow UK credit scores work: what the credit reference agencies record, what affects your score, why scores differ between agencies and what lenders actually see.Read more → is separate. An IVA is normally recorded for six years from the date it started, so if your IVA ran for five years, it will remain for around a further year. Check each credit reference agencyCredit reference agencyA credit reference agency is a company that collects information about people's borrowing and sells it to lenders. The main UK agencies are Experian, Equifax and TransUnion.Read more →, Experian, Equifax and TransUnion, to see that the IVA is marked as completed and the included accounts are shown as settled or closed correctly. See IVA and your credit score.

Your first steps after completion

1. Check all three credit reports. Look for errors, such as accounts shown as still open or balances still owing. Use our guide to correcting errors on your credit report.
2. Keep your certificate and final report.
3. Review your budget. The money you were paying into the IVA is now yours. Decide in advance where it will go.
4. Build an emergency fund. Even a small cushion makes a relapse into debt less likely. See how to build an emergency fund.
5. Rebuild credit slowly. See credit cards and loans after an IVA.

Making the money count

Many people find that the first months after an IVA feel strange, because they suddenly have spare money each month. The best habit is to give it a job straight away. Put a fixed amount into savings on payday, pay yourself first, and keep the rest for living costs. If you have kept to a strict budget for years, use it as a base rather than abandoning it. Our guides on how to make a budget and how to save money each month can help.

Common worries

• Will the debt come back? Debts that were included and written off cannot be revived. New debts you take on later are separate.
• Can a creditor chase me after completion? Not for included debts. Keep your certificate in case an agency tries.
• What about the IVA on my credit file? It stays for six years from the start date, but its weight fades over time.
• Can I get a mortgage? Many people can, often after a period and with a larger deposit. Speak to an independent adviser.

If you need more help

If your finances are still tight after the IVA, do not wait. Free advice is available from StepChangeStepChange Explained: What It Does and How It WorksWhat the debt charity StepChange offers, how its free debt advice and debt management plans work, who it suits and what to expect when you contact them.Read more →, National DebtlineNational Debtline: How It Works, When to CallWhat National Debtline is, who runs it, what it can help with, how to get free advice by phone, webchat or online tools, and what to expect.Read more → and Citizens Advice at any time. See free debt advice in the UK. For an overview of how IVAs work from start to finish, read our guide to the Individual Voluntary Arrangement.

A typical timeline

Suppose your IVA starts in January and runs for five years. In the final months, your practitioner carries out a last review and asks for up-to-date income details. If you have equity in your home, they may ask whether you can remortgage. When the last payment clears and everything is in order, they issue the completion certificate. Three months later the entry on the public register is removed. Your credit file continues to show the IVA until six years after the January start date, so for around a year after completion. Each step happens in sequence, but the exact timing depends on your practitioner and your circumstances.