What to expect in the final months of your IVA

Your IVA has nearly finished. Here's what to expect, what to check and what happens before you complete it.

Disclaimer: This guide is for general education only and isn’t financial or debt advice.

Confirm the completion date

Check that the final date on your IVA paperwork is correct with your Supervisor. Once you’ve confirmed the completion date, continue to follow your Supervisor's instructions until your IVA is formally completed.

What could delay your IVA completion, or your final payment date?

Sometimes an IVA finishes later than expected. This isn't necessarily a sign anything's gone wrong. There are a few reasons this can happen, including:

• You might have taken a payment break, or extra months were added along the way.
• If you own your home, you may have had an equity review as part of your IVA. Depending on your circumstances and the terms of your agreement, this could affect when your IVA finishes. Check with your Supervisor that any equity requirements have been resolved and confirm whether they affect your completion date.
• If you receive unexpected money during your IVA, such as a lottery win, you may need to pay some or all of it into your IVA. Let your Supervisor know if this happens so they can explain what applies to your agreement.
• If you receive a bonus or other additional income, tell your Supervisor, and they will advise if some of it needs to be used to pay your IVA. The amount will depend on the terms of your agreement.
• If you receive a bonus, different rules usually apply. You can keep your bonus of up to 10% of your declared monthly income — anything above that limit is treated as excess, and 50% of that excess is paid into your IVA. 
  
  • ^{For example: if your declared monthly income is £2,000, your income limit for that month is £2,200 (10% higher). If you receive a bonus that takes your pay to £2,400 that month, the excess above your income limit is £200. You'd pay 50% of that excess — £100 — into your IVA.}
• Paying a bonus into your IVA usually increases what your creditors receive, rather than delaying your completion date. However, failing to disclose a bonus, or not paying the required share, counts as a breach and can extend your IVA term or in some circumstances, can lead to your IVA being cancelled. So always remember to disclose any additional income above your threshold within 14 days of receiving the funds. Most importantly, check with your Supervisor on the bonus rules that specifically apply to your circumstances and any additional payments that may be required into your IVA.  
  

What happens in the closure process?

When you make your final monthly payment to your Supervisor, they will then begin the process of closing your agreement. They may contact you for a final review. If invited for a review, do ask in advance what you’ll need to provide so you’re fully prepared and they have everything they need.

Once the final review is complete and your Supervisor starts to close your agreement, they’ll issue your completion certificate. In practice, this is usually a letter from the Insolvency Practitioner that confirms you have made your final payment and that your IVA has finished. By law, this must be issued within 28 days of meeting your final requirements. It may arrive by post or by email, depending on your provider. Either way, save the email or print a copy for your records.

Once your completion certificate is issued, your Supervisor officially notifies the relevant insolvency register and your creditors. Credit Reference Agencies (CRAs) should then automatically pick up this update on your file.

When the insolvency register is updated, your IVA will show as “completed” for up to three months, then the record will be removed. 

However, your  IVA marker and defaulted accounts will stay on your credit file for six years from the start date of your IVA.

If your property has a restriction registered at Land Registry, your Supervisor will usually contact HM Land Registry to have it removed. In practice, it's worth asking your Supervisor directly to confirm they'll do this before completion, and checking your property title with Land Registry yourself a few months after completion, just to be sure it's gone through.

Remember, once your completion certificate arrives, your IVA is finished. Any outstanding unsecured debt named in your IVA no longer needs to be paid back to those creditors. 

Some unsecured debts are not eligible to be included in an IVA, for example, TV licence arrears, court fines, and child maintenance arrears. If you have these types of debts, you will need to continue repaying them after your IVA is finished. See Citizens Advice for the full list.

When your IVA is complete, check that any Standing Orders or Direct Debits are cancelled. Some IVA providers may charge by card payments; again, check with your Supervisor if this applies and that they have cancelled your card payments. 

What documents should you keep?

Your paperwork, particularly the completion certificate, marks the end of the process and gives evidence of years of effort in making payments. 

Keep a folder in a safe place, and put in it: your completion certificate, final report, original IVA paperwork, and any subsequent letters.

What will change on your credit report?

Your credit report won't update all at once. It changes gradually in the weeks, months, and years after your IVA ends. As long as you keep up responsible credit habits, you should see it positively impacted over time.

There's a predictable timeline of changes to expect. Here's what usually happens, and when:

When will the IVA disappear from your credit file?

Six years from the start date of your IVA. Any defaulted accounts included in your IVA will also show on your credit report for six years, before both the IVA marker and defaulted accounts disappear. 

Rebuild your credit history

When your IVA ends, you can start looking ahead to what comes next. Rebuilding your credit history takes time, and there are practical steps you can take to start making progress.

In our next guide, we’ll explain what can happen to your credit history after an IVA and the steps you can take to start rebuilding it.