Reaching the end of an Individual Voluntary Arrangement (IVA) is a big milestone. For many people, it marks the end of several years of careful budgeting, regular payments, and commitment to getting back on track financially.
But what actually happens when your IVA finishes? Do your debts disappear straight away? Does your credit file update automatically? And what should you expect in the weeks and months that follow?
This guide explains what happens at the end of an IVA, what you need to do, and what life looks like after it’s over.
Step 1: Making Your Final IVA Payment
When you reach the end of your IVA term, you’ll make your final agreed payment. This might be:
- Your last regular monthly payment, or
- A final lump sum payment, if your IVA included one
Once this payment is made, your payment obligations under the IVA are complete. However, this doesn’t mean the IVA is instantly finished from an administrative point of view.
Step 2: The IVA Is Closed and Reviewed
After your final payment, your IVA provider needs to:
- Check that all payments have been received
- Make sure all terms of the IVA have been met
- Finalise the accounts
- Distribute any remaining funds to creditors
This process can take several weeks or even a few months, depending on how complex your case is.
During this time, your IVA is effectively completed, but not yet formally closed.
Step 3: Receiving Your Completion Certificate
Once everything has been checked and finalised, your insolvency practitioner will issue a Certificate of Completion (sometimes called a Notice of Completion).
This is a very important document. It proves that:
- You have successfully completed your IVA
- You no longer owe the remaining debts included in the arrangement
- Those debts are now legally written off
You should keep this certificate safe, as you may need it in the future if there are any questions about your debts.
Step 4: What Happens to Your Debts?
Once your IVA is completed:
- All remaining unsecured debts included in the IVA are written off
- Creditors can no longer chase you for those debts
- You are no longer legally liable for them
This is one of the biggest benefits of an IVA and often comes as a huge relief.
Step 5: What Happens to Your Credit File?
Your IVA stays on your credit file for six years from the date it started, not from the date it ended.
This means:
- If your IVA lasted five years, it will usually drop off your credit file about one year after completion
- If it lasted six years, it may drop off around the time it finishes
Once the six-year point is reached, the IVA should automatically disappear from your credit report.
You should also:
- Check your credit file to make sure the IVA is marked as completed
- Make sure included debts are marked as settled or satisfied
If anything is incorrect, you can contact the credit reference agencies to have it updated.
Step 6: Can Creditors Still Contact You?
No. Once your IVA is completed and you have your completion certificate:
- Creditors included in the IVA are no longer allowed to chase you
- They cannot take legal action for those debts
- If any creditor does contact you by mistake, you can show them your completion certificate
What About Assets and Your Home?
If your IVA included conditions relating to assets (such as equity in your home), these should already have been dealt with before the IVA was completed.
Once the IVA is finished:
- Any restrictions linked to the IVA should be lifted
- You regain full control of your finances without the IVA in place
What If Your IVA Was Extended?
Some IVAs are extended beyond the original term, often because:
- Payments were missed and had to be made up
- An equity release clause couldn’t be met and extra payments were added
If this happened, your IVA will only complete once the extended term and all required payments are finished.
Life After an IVA
Finishing an IVA is a great opportunity to reset and rebuild your finances.
Rebuilding Your Credit
Even though your IVA will still show on your credit file until the six-year point, you can start rebuilding your credit by:
- Paying all bills on time
- Keeping balances low
- Using any credit carefully and responsibly
- Avoiding unnecessary applications
Over time, your credit profile can improve significantly.
Should You Change Your Financial Habits?
An IVA often teaches people strong budgeting skills. After it ends, it’s a good idea to:
- Keep using a budget
- Build an emergency savings fund
- Avoid relying on credit
- Only borrow what you can comfortably afford to repay
This helps prevent future debt problems.
FAQ’s About the End of an IVA
Do I need to tell anyone my IVA has finished?
You don’t usually need to tell creditors, but you should keep your completion certificate and check your credit file is updated.
Can I get credit after my IVA ends?
You can, but you should be cautious. Some lenders may still see you as higher risk until the IVA drops off your credit file.
What if a debt shows up later?
If it was included in your IVA, it is written off. Your completion certificate is your proof.
If you want more advice or information on renting with an IVA, please get in touch with My Debt Plan today.
