What about my credit rating?

Once the IVA has been successfully completed [1] and closed you will be issued with a certificate of completion showing that you have fulfilled the requirements of the IVA. People you owe money to must write off any outstanding balances. This leaves you debt free and at liberty to make a fresh financial start.

The surplus income you have left each month is now yours to spend on what you wish.

Along with issuing you with a certificate of completion, a final report and a full receipts and payments account of the funds received and paid out during the term of the IVA [2], the Insolvency Practitioner will also notify the required authorities such as the court and the Department of Trade and Industry that your IVA has been successfully completed and that you are now debt free.

Once your IVA ends, the Insolvency Service will inform the credit reference agencies. The agencies will then update the IVA entry on your credit report to show it has been completed. The entry then stays on your credit report for six years from the date the IVA began. You might continue to experience difficulties getting credit and other financial services because you were in an IVA in the past, however, when your IVA concludes successfully, your credit rating is likely to be repaired more quickly than if it fails.

Generally, you are better able to obtain credit once your debt problem [3] has been resolved. Having entered into an IVA, the last thing you should be thinking about is more credit, however, there are many lenders who will look at your ability to pay, and successful completion of an IVA, rather than just your credit file.

A successfully completed IVA is an excellent example of a good payment history.

Your credit report should be updated within 28 days of the closure of the IVA. However, if you obtain a copy of your credit report and it has not been updated to reflect completion of your IVA you can request that they do so. To do this, send them a copy of your certificate of completion attached to a letter asking them to update your credit report. If you have misplaced your original copy of the certificate and final report it is possible for us to send a second copy out to you if you request one.