What happens after my IVA finishes?
Published Tue, Sep 27, 2016 Updated Tue, Feb 16, 2021
Congratulations on successfully finishing your Individual Voluntary Arrangement (IVA) – you’re now a big step closer to becoming debt free! But what happens after your IVA finishes? Here are a few things to consider…
Certificate of Completion
Your Insolvency Practitioner will give you a Certificate of Completion and let your creditors know that you’ve finished your IVA. The certificate is also sent to the Insolvency Service so your details can be wiped from the Insolvency Register.
Update your credit record
It’s vital to let credit reference agencies know immediately that you’ve completed your IVA. Your creditors will update your credit record to reflect your finished IVA within 28 days. If they don’t then you can contact them to update your details and send your Certificate of Completion as proof. It’s worth noting that the IVA will stay on your credit record for six years from the start date – even if the terms of your IVA were less than six years. That means if you have a 5 year IVA then it will stay on your credit record for one more year after completion.
Financial freedom after your IVA
The money you have been paying into your IVA each month will be free for you to use. Of course, you can treat yourself but now would be a fantastic time to save some aside. Some people choose never to take out credit unless in an emergency because they’re used to living on a budget. But if you want to rebuild your credit rating after an IVA without getting into debt then it’s entirely possible!
Rebuilding your credit rating
It’ll be difficult to obtain credit directly after finishing your IVA – so it’s a great idea to wait a few months before applying for a credit card, as any credit checks made by lenders can affect your credit rating. Stick to the golden rule of borrowing 30% of what you’re offered. So if you’re offered a credit card with a £150 limit then just spend £45 and pay it back as soon as it’s due. It’s a great idea to make one small transaction with your credit card and pay it off on or just before the due date.