If you’re in the last few payments of your Individual Voluntary Agreement, you’ll be looking forward to making the last one. This might feel a lot like getting to the completing line of a marathon… However, when should you cancel the standing order? And how long does it take to get the Ultimate certificate? And when actually are all the outstanding debts written off? Today’s guide looks at what actually happens at the end of an IVA settlement plan.
Are you sure that this is your last monthly payment?
With 5 to 6 year IVA, possibly with a further 1 year added instead of a remortgage, you might be aware actually when your 60th or 72nd payment is going to be made.
However at times, this is less clear:
There may be certain payments pending if additional months were added or if you had a payment break because of extra income; so
a change of IVA company won’t by itself modify the end date, however admin issues can happen thus, there is more possibilities that payments are pending;
And, if you’ve some property like a house or anything relevant, however your IVA firm hasn’t talked to you about releasing the equity, then an additional year is not required at all.
Henceforth, it is genuinely worth verifying with your IVA firm and how does an iva work a few months before “the end” of your last payment.
An ultimate review by your IVA firm
Your IVA firm can make the ultimate review. Usually, large & reputed companies have a few Closure Teams that deal with these circumstances directly. Certain companies do the review in the last few months, & others wait until after your last payment.
And this is almost like your annual reviews. Certain companies ask for pay slips, or bank statements. Basically, they want to verify if you had a bonus, pay rise, a lot of overtime, or any other windfall that you have not told them about. And if you’ve, you might require making some additional payment.
And hopefully, after this, the company will confirm that no more payments are required & you will be able to cancel the DD or STO.
Your IVA Company closes the IVA settlement program
When the Closure team assures that you’ve made each & every monthly payment, they’ll distribute the last money to all your lenders.
And if you have not already agreed to the company collecting PPI after your IVA settlement has completed, you will possibly be asked to sign certain papers. But in case you don’t, the firm might decline to close the IVA settlement program unless they are certain there is not any more PPI to come – & it can be years.
It might feel unfair however; they’re enabled to do this. If you want your IVA closed, you are going to have to sign.
And the closure process usually takes 6 to 8 weeks, however, at times there might be large delays. In case, your Completion Certificate has not arrived after 2 to 3 months, then it is always recommended asking every few weeks what is actually happening & whether you require to render any more data.
And if it gets to 4 to 5 months after your last payment, then you should put in a formal complaint to the Free IVA Help Company. And after six months, make sure you put in a complaint to the Insolvency Service and ask about the delay in closing your IVA settlement.
Ultimately, you’ll get your Completion Certificate:
Your IVA settlement program is over. The last dividend has been sent to your lender & the outstanding of your debts are written off. Your hired IVA firm will update the Insolvency Register. You will find your name on the register where it is defined that you “completed” for 3 months, & then the entry is removed.
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Thereafter, the Insolvency Register sends the data that your IVA settlement process has finished to the 4 Credit Reference firms. The IVA will stay on your credit report until 6 years from the beginning of your IVA. Or unless it gets finished, whichever is later.
This comes to the end of what happens at the end of an IVA. Thanks for reading our blog. Hopefully, we have provided sufficient information regarding “end of an IVA”. If you still have any kind of questions related to “how do an IVA works” or need “free IVA help“, let us know in the comment section below…we would be happy to help you out. On the other hand, you can also give us a ring or send us mail!