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When you first start an IVA, you may feel like there’s a lifetime to go to be debt-free. But preparing for the completion of your IVA is wise. To do this, you need to have a good understanding of what happens at the end of an IVA. 

This is why the knowledge you gather from this article will be very helpful. 

Warren Marshall
Last updated on 19 September 2023
Fact Checked

Table of Contents

1. What is an IVA? – The Initial Steps of Understanding What Happens at the End of an IVA
2. How Long Does an IVA Last
3. What Happens at the End of an IVA?
4. What Happens at the End of an IVA if Your IVA Firm Doesn’t Contact You?
5. How Can I Improve My Credit Score After an IVA? – The Aftermath of What Happens at the End of an IVA
6. Can I Get a Mortgage After an IVA? – Crucial Points to Consider After Understanding What Happens at the End of an IVA
7. Precautions to Take At the End of an IVA
8. Key Points
9. FAQ


What is an IVA? – The Initial Steps of Understanding What Happens at the End of an IVA

An IVA (Individual Voluntary Arrangement) is a type of agreement between your creditors and you. It is also legally binding. The agreement is as follows:

1. You agree to pay a portion of your debt every month.
2. Your creditors agree not to contact you or take legal action against you during this time. 

Unlike debt solutions such as DMPs, you can get an IVA by simply contacting an Insolvency practitioner. When you make the payments, your IP will be responsible for distributing the funds between your creditors. 

Your IP will also speak with your creditors on your behalf and give you clarification on any questions that you may have about this process. 

How Long Does an IVA Last?

Usually, an IVA lasts 5-6 years. But this depends on the amount of debt you can afford to pay off each month. 

If you possess the financial resources, another option available is to settle your debts with a one-time lump sum payment, enabling you to conclude your IVA ahead of the typical five-year duration.

Conversely, in the event that you encounter difficulties meeting the agreed-upon portion of your unsecured debt within the stipulated timeframe of your IVA, your Licensed Insolvency Practitioner will collaborate with both you and your creditors to renegotiate terms and prolong your monthly payments.

So, if you’re wondering, “What happens in the last year of my IVA?” you just have to focus on sticking to your side of the agreement. You’ll make the remaining payments and ensure that you’re following the set terms. But here’s a kicker: failing to adhere to these terms could extend your IVA as well.

What Happens at the End of an IVA?

You might be curious about what comes next as you approach the conclusion of your IVA.

The Final Payment: Crucial Points to Note on What Happens at the End of an IVA

What happens first is that your IP will make sure that you have paid all the debt on time and fulfilled your side of the agreement. Once your IP confirms your final payment, you will receive a notice saying you have successfully completed your IVA. 

But keep in mind that if you had a payment break or additional time was added to your agreement, you may have to pay more fees. 

So now you’ve reached the big moment, the climax of your IVA journey. You make your last scheduled payment. But there are still some crucial steps to follow. What happens at the end of an IVA doesn’t just stop at making your final payment. 

The Importance of Your IVA Completion Certificate- The Importance of Documents in Understanding What Happens at The End of an IVA

You’ll get your IVA completion certificate. This piece of paper is like gold; it’s your official ticket out of debt prison. Your Licensed Insolvency Practitioner gives it to you, confirming you’ve met all your obligations. 

You’re free now, or so you think. Do you just tuck this IVA certificate away in a drawer and forget about it? 

Distributing Your IVA Certificate

Keep that IVA certificate safe, but also be proactive. You will need it in order to send its copies to credit references, including:

  • Experian
  • Equifax
  • TransUnion

This is what will help them to update your records and ensure that your credit report is up-to-date and accurate. It is in this step of what happens at the end of an IVA that your remaining debt gets officially written off. 

Checking Your Status at the End of an IVA: The Insolvency Register

So you’ve sent off your IVA certificate to the credit agencies. You’re done now, right? Wrong. About three months after the end of your IVA, you’ll need to do another important task. Check the Insolvency Register. This insolvency register shows everyone with active or recently completed IVAs. 

Your name should be removed three months after your IVA ends.

The Risk of Ignoring the Insolvency Register

Why is checking the Insolvency Register so important? Failing to verify that your name has been removed could lead to all sorts of issues. Imagine still being labelled as insolvent when you’ve completed all the terms! 

Don’t Forget Your Creditors: A Crucial Step in Understanding What Happens at the End of An IVA

But wait, there’s more. Remember those people you owed money to? Your creditors? You may think they’re out of your life for good, but one more interaction is necessary. You need to inform them that your IVA has been completed. This is especially important for any creditors who were not included in the original IVA.

The Consequences of Ignoring Your Creditors

Your relationship with your creditors doesn’t just magically end. What happens at the end of an IVA extends to them, too. If you fail to inform all relevant parties, you risk legal complications and financial hiccups. 

Rebuild your finances

Once you have successfully completed your IVA and your name has been removed from the Insolvency Register, you can begin the process of rebuilding your financial stability.

Restoring your credit rating may require several years, and your IVA will be recorded on your credit report for six years from its approval date. However, the sooner you begin making prudent financial decisions, the quicker you can move toward financial independence.

The disposable income you were allocating towards your IVA will also become available for your discretion. Many individuals choose to deposit this extra money into a savings account to use for everyday expenses.

What Happens at the End of an IVA if Your IVA Firm Doesn’t Contact You?

If your IVA firm doesn’t contact you at the end of your IVA to confirm its completion, you might not be able to confirm its completion. So, in this case, make sure to email or directly call them. Ask them what you should do for the final review process and to confirm the completion of your IVA. 

The process will be much easier if you contact them without delay. If they still don’t cooperate or give you any confirmation or advice regarding this, send them an email every week. Give them one month to get back to you. 

If they don’t contact you even after a month, then you have the right to make a formal complaint. 

How Can I Improve My Credit Score After an IVA? 

Now, Let us talk about the aftermath of what happens at the end of an IVA.

The Initial Impact: How Does an IVA Affect Your Credit Score

You’ve just wrapped up your IVA, and now your focus shifts to rebuilding your life, particularly your credit score. Your score will plummet during the IVA period. So during this time, you won’t be able to borrow any money. But thankfully, this isn’t the end. 

What steps can you take to rebuild it? Trust me, you’ll want to know.

Registering on the Electoral Roll: A Simple Yet Effective Step

Boosting your credit score is not difficult. All you have to do is register on the electoral roll. 

Being on the electoral roll provides proof of your address, which lenders like. It shows you’re stable and rooted. 

Why Electoral Roll Registration Matters 

Many people underestimate the power of the electoral roll when it comes to credit scores. Being on it can increase your credit rating significantly. Could skipping this step make or break your chances of a healthy financial future? Stick around to find out.

Steady Finances: The Backbone of a Healthy Credit Score

Having stable finances post-IVA is vital. Your credit score reflects your financial behaviour. Your credit score will improve if you:

  • Maintain a stable income
  • Don’t miss payments
  • Keep your debts low
The Do’s and Don’ts of Financial Stability

Do keep your bills and financial obligations in check. Don’t open new lines of credit recklessly. Doing so could negatively impact your score. 

Tread Lightly: The Risk of Applying for New Credit

A common mistake people make after an IVA is rushing to apply for new credit cards or loans. While it may be tempting to prove you’re creditworthy again, hold your horses! Why could this be a problem? Well, too many hard inquiries into your credit report could drop your score further. 

Timing Is Everything: When to Apply for Credit

After completing your IVA, give it some time before applying for new credit. Your eagerness could backfire, pulling your credit score down instead of pushing it up. 

To Sum It Up: A Tactical Approach to Improving Your Credit Score

Improving your credit score after an IVA involves a combination of strategic moves. But with:

1. Careful planning
2. Disciplined financial habits

You can easily get it back on track. 

Can I Get a Mortgage After an IVA? – Crucial Points to Consider After Understanding What Happens at the End of an IVA

You might think getting a mortgage after an IVA is impossible. But that’s not true. While challenging, specialist lenders may still offer you a mortgage. However, your interest rates might be higher. A better credit score and a decent deposit can tilt the scales in your favour. Still, timing is key. 

Also, don’t forget that even if your IVA does not fall in your credit report after six years, creditors might ask you for your credit history. Then, you may have to provide all these details, including your IVA. 

Precautions to Take At the End of an IVA

After completing your IVA, enjoy being debt-free. However, hereafter, make sure to always follow a strict budget. This will keep you out of financial issues in the future. You can also start saving up a bit more. Simply put the same or a similar portion of the payment you were making for the IVA into your savings account. 

Keeping some money saved is wise. So, if you have an emergency or want to pay off debts, you will always have savings. Two ideal options for this purpose include:

1. High-interest savings account
2. ISA

The two options help you to get the most out of your money. 

For more advice on what happens at the end of an IVA, contact a debt charity. They offer great advice for free. Some debt charities you can consider include:

  • StepChange
  • National Debtline
  • Citizens Advice
Need More help?

In the United Kingdom, there exist various alternative debt solution options. Selecting the appropriate one for your circumstances could result in the discharge of a portion of your unmanageable debt. 

Conversely, opting for the wrong solution may prove costly and protracted. 

Feel free to fill out this online form from here If you need more help in solving your particular debt issue.

Key Points

  • An IVA is a type of agreement between you and your creditors. You agree to pay a portion of your debt every month, and they agree not to contact you during that time. 
  • An IVA lasts for 5-6 years.
  • After making the final payment of your IVA, you will receive a completion certificate.
  • Even after you receive a completion certificate, it’s important that you check your status.
  • You should also inform your creditors that your IVA is complete. 
  • If you want to improve your credit score after an IVA, register on the electoral roll.
  • Even after an IVA, you can still receive mortgages. But make sure to wait till your credit score improves. 


What Is the Final Step at the End of My IVA?

The final step involves making your last scheduled payment. After that, your Licensed Insolvency Practitioner confirms you’ve met all your obligations. Then, you’ll receive your IVA completion certificate.

What Should I Do with My IVA Completion Certificate?

You should send copies of your IVA completion certificate to all three major credit reference agencies in the UK such as Experian, Equifax, and TransUnion. It helps in updating your credit records.

What Happens in the Last Year of My IVA?

In the last year of your IVA, your Licensed Insolvency Practitioner reviews your financial statements and payment history to ensure that you’ve adhered to the terms. It’s crucial to maintain consistent payments to successfully conclude the IVA.

Can I Get a Mortgage After an IVA?

Yes, but it’s challenging and requires careful planning. You’ll need to prove you’re financially responsible post-IVA and likely face higher interest rates. Your ability to get a mortgage is an important aspect of what happens at the end of an IVA.

Should I Check the Insolvency Register After My IVA Ends?

Yes, checking your Insolvency Register is important. Make sure to check three months after the completion of your IVA. 

What Risks Are Involved If I Don’t Follow Up After My IVA Ends?

Failure to send your IVA completion certificate to credit agencies or to check the Insolvency Register could lead to ongoing financial issues and affect your credit score.

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