What happens when you make your final IVA payment?

posted by in Living with debt

This article was written in relation to a debt solution available in England, Wales and Northern Ireland. Debt advice in Scotland involves similar but different solutions. Before considering an IVA as your debt solution, please make sure you fully understand the risks involved when entering an IVA.

Your last payment

Your last payment

It’s been a long journey and you should feel very proud, completing an individual voluntary arrangement (IVA) is no mean feat.

It means you’ve lived without credit and on a budget for a period of five to six years, and of course, the reward at the end of an IVA is that you’re debt free.

So you’re approaching your final payment, what should you expect?

Unlike the start of the process where you helped set up the IVA by providing us with all the paperwork, the end of an IVA is a fairly simple process.

We will check that you have paid in all the overtime & additional income due and if you have paid everything to us there’s essentially nothing more for you to do.

You just make your final payment and we do the rest. We’ll send out your IVA completion certificate as well as your completion report. This is usually done within 4-6 weeks after your last payment. And that’s it, you’re debt free.

What about my creditors?

Your creditors will usually update your credit file to show that your IVA is completed within 28 days. However if you do get a copy of your credit report that doesn’t show the IVA is completed you can ask creditors to update the information. To do this you should send the creditors a copy of your completion certificate.

What about my credit file?

Even though your IVA is completed details of this will still show on your credit file for six years from the day it started. So your credit rating may not improve straightaway.

We wrote a blogpost on how to improve your credit rating after your IVA, it gives some useful tips on how to get your rating back on track.

Is there anything else I need to do?

There’s nothing else you need to do, but putting our advisor hats on we’d suggest:

  • For the duration of the IVA you’ve been paying all your surplus income into the arrangement and it would be natural to treat yourself to a little something once the arrangement is completed. However we’d also suggest that you maintain your budget for the future; by the time you come to finish an IVA you should really have a firm grip on your expenses.
  • And it’s always a good idea to save for a rainy day fund once you finish the IVA. Even saving what you would pay into your IVA for three to four months could build up a great emergency fund in case anything goes wrong with the car or those pesky domestic appliances.

The end of the road

All in all completing an IVA is a real achievement, and we hope you now find yourself with a good solid financial footing for the rest of your life.

Matthew worked as an IVA drafter prior to working in social media. In a former life he wrote scripts for Eastenders, Emmerdale and Hollyoaks. He has 3 chickens, 2 dogs and a rabbit.

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Tags Living with debt
  • moneyaware

    Hi Lee

    Great news on you completing your IVA, I hope you can now look forward to a debt free future.

    Your IVA will very likely have impacted your credit score and it’s important to remember that how your credit rating is perceived is different between lenders.

    There are also three credit reference agencies: Experian, Equifax and Call Credit and your score can be different between each of these companies

    There are things you can do to improve your credit rating and I would recommend speaking to a credit reference agency for more help and advice on this.

    I hope this helps.

    Rory

  • Bev

    I finished y IVA onthe 5th Dec 14. It is now the 21st Jan 15 and I still have not reeived any paperwork from my IVA company, I have sold my house and they are taking £ 45,000.00 out of the equity of my house and they ahve give me an estimated statement which is more than I originally owed and I a a bit upset. Can you help.

    • moneyaware

      Hi Bev,

      Thanks for your message and I’m sorry to hear you’re finding your situation upsetting.

      As an IVA is a formal agreement between you and your creditors, I’m not able to advise you on your situation. I’d suggest you speak to your Insolvency Practitioner (IP) about this, as they will know more about your specific situation and will be able to answer any questions you have about your circumstances. Alternatively you could get in touch with the Insolvency Service – you can find their contact details here: https://www.gov.uk/the-insolvency-service

      Kind regards,

      Laura

  • johnnoname

    i finished my iva in 2012 (120,000) and today i received a payment of 8500 uk pounds from my iva company back to my account ?. i have no letters etc from them prior to this .

    • moneyaware

      Hi there,

      It might be worth getting in touch with your IVA company to let them know about this.

      They should be able to give you more information about why this has happened.

      Kind regards,

      Jen

  • eliphas_levi

    So my final payment is £2500 which I cant afford. Now what?

    • moneyaware

      Hi there,

      Thanks for posting.

      As an IVA is a formal agreement between you and your creditors we’re unable to offer
      advice on it.

      In this situation, you should get in touch with the IVA supervisor dealing with your IVA to
      let them know. They’ll be able to talk through your options with you.

      We’ve got an article about missed IVA payments that you might find useful to read here:

      http://moneyaware.co.uk/2012/11/can-i-miss-payments-into-an-iva/

      If you have any more questions please let us know.

      Kind regards,

      Jen

  • Suzy37

    My final payment is due on the 10th of June do I still have to send my financial details as this pertains to next year

    • moneyaware

      Hi there,

      Thanks for posting.

      Your question is a little unclear and we’d need more information to be able to help.

      As your IVA is a formal agreement with your creditors, and tailored to suit you, we’re unable to offer advice on it.
      However, for most things relating to your IVA it’s worth getting in touch with your IVA provider if you have any queries as
      they should be able to help.

      Kind regards,

      Jen

  • John Hills

    Hi, my iva finished on the 31st dec. 2015 but i still dont have a completion certificate and they have just extended it for another 6 months!, how long legally can they do this for?
    Regards John

    • moneyaware

      Hi John,

      I would usually expect completion certificates to be sent out a few weeks after your final payment. I’d suggest contacting your IVA provider and asking them why it has taken so long.

      If you find you can’t make any progress by speaking to them directly, you could make a complaint about your insolvency practitioner to the Insolvency Service. Here’s a link to an online complaint form: https://www.gov.uk/complain-about-insolvency-practitioner.

      Kind regards

      James

  • Martin Lock

    i have £6000 left to pay over 4 years ..would they take £7000 for early completion so i can move on with my life

    • moneyaware

      Hi Martin,

      It’s possible to apply to vary an IVA if your situation changes and you’re in a position to pay in a lump sum. Whether your creditors would agree to it isn’t something I can answer though.

      The best thing is to speak to your IVA supervisor and they should be able to tell you what options you have if there’s a lump sum (potentially) available.

      Kind regards

      James

  • Troy

    Hi i complete and IVA back in 2008 but was never sent my certificate where can i obtain this from.

    • moneyaware

      Hi Troy,

      The first place to start would be the company that organised your IVA.

      Thanks

      James

  • Arshad

    I have had an IVA, which I paid to an IVA provider for 4 years then my circumstances had changed and I informed the company i was dealing with to hold on for sometime.

    I emailed them about my situation but no answer, I rang and left messages to call back but no joy. This has ended up saying that I breached the contract.

    recently I managed to speak to the their telephone advisor who told me that they have closed my file and if i want to go for an IVA then re-apply with some other service provider as we cannot re-start it for you.

    Now Creditors are sending letters & asking for full payments.

    What happened to the payments that I’ve paid over the period of 4 years?

    Can you please advise any solution?

    Kind Regards,

  • Rachel R

    I finished my IVA in February 2016. I never received a certificate and they are now asking for an income and expense sheet to be completed,and bank statement, payslips etc. As far as I am concerned everything is done and dusted. why do they need this from me when the agreement is completed

  • Rachel Smith

    Hi I have just paid a settlement figure to my IVA company as creditors agreed to let me settle early! Can I now sell my house or do I need to wait for my completion certificate !

    • moneyaware

      Hello Rachel

      Congratulations on completing your IVA. We would recommend that you speak to your IVA Supervisor and check with them what you should do next.

      Thanks
      Becca

  • Richard Toolbox Talbot-Ashby

    Hi there!

    My final payment in my IVA (with StepChange VA) will be in January 2019, a few months after the original final date because of a payment break. Anyway, I will have my next review in March 2018 to arrange the final chunk of payments. Is there anything different that takes place in this final period that I should be aware of?

    Would I be right in assuming that after the final payment you need a copy of a payslip to check that I would have declared any additional income/overtime? Are there any other checks that are performed to finalise the IVA? I’m super curious and excited since I only have 19 payments and 571 sleeps left to go!! 🙂 Not that I’m counting or anything…

    Cheers,

    Rich

    • moneyaware

      Hi Richard

      Apologies for the late reply on your question, I am liaising with a team member in our IVA department to get you some further information, please bear with me.

      Thanks
      Becca

      • Richard Toolbox Talbot-Ashby

        Becca,

        Thanks for looking into this! I really can’t wait to get that final payment completed, (in 556 days!!!), and I must admit I’m a bit of a control freak and just like knowing as much as I can on the whole process!

        Cheers,

        Rich

      • moneyaware

        No problem, well done for getting this far and best of luck in completing your IVA.

        Thanks
        Becca

    • moneyaware

      Hello Richard

      Apologies for the lateness in my reply – I needed to check the details with the VA team.

      If your last review falls when you have 6 or less payments remaining, then we’d do a more condensed version of the review, which only involves checking your payslips for additional income. However we don’t need to do any sort of review or check once your final payment has been made. So depending on your approval date, it may be that we’ll do a full review for you in March 2018 and then you’ll reach your final payment before any other review will be due.

      Once you’ve made your final payment we’ll draft a completion report with a completion certificate to confirm your IVA has completed successfully, which will be sent to you and your creditors.

      I hope that this helps and best wishes for the future.

      Thanks
      Becca

  • John Nicholls

    Hello,

    I have completed my final agreed payment to the IVA (StepChange), which included all calculated extra income etc. I have received a letter stating this, and that the process of completion is underway; so I will receive my certificate within 4 – 6 weeks. My question is, if I receive a bonus payment from work, or a bank refund during this time – should it go to my completed IVA during this period of completion or not? It seems a very grey area.

    Thank you

    John.

    • moneyaware

      Hi John,

      If you received a windfall in the period between making your last IVA payment and before receiving your completion certificate it’s possible some or all of the money would need to go into the IVA. It depends on the circumstances and the specific terms of your IVA, so you’re right in saying that it’s a grey area.

      If you give our us a call we’ll be able to look at your specific circumstances and hopefully, we’ll be able to give a more definite answer.

      Kind regards

      James

  • Tracy

    hi i completed my iva early 10 weeks ago and i haven’t received my completion certificate or a letter stating that the consent order has been lifted off my house doe anybody know how long this takes please