What happens next?

[our7]

I have paid off my IVA and had a letter of confirmation that monies have been received. What happens next?

[MelanieGiles]

Hi our7 and welcome to the forum

Your IP will finalise his administration of your case, pay off the creditors and file a final report with the Court and the Registrar of Individual Voluntary Arrangements. You will also be provided with a Certificate of Due Completion as evidence of the fact that you have complied with the terms of your IVA and are thus released from all debts contained within the agreement.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[our7]

Melanie,

Thanks for the prompt reply.

As I am currently in rented accomodation, I am interested to know how long after an IVA (once I receive the Certificate of Due Completion) I will be able to apply for a mortgage?

Thanks again

Our7

[jamesfalla]

Hi there our7

Once you get your certificate of completion from your IP, it is a very good idea to send a copy of it to the credit reference agencies (Equifax and Experian). They will then register that your IVA has been completed and your debts are now satisfied. This process will eventually happen without your intervention, but you speeding it up always helps.

In terms of you being able to get a mortgage, you can apply for one straight away. However, note that the record of your IVA having existed will remain for 6 years from the date it started. As such, you will need to consider an adverse mortgage and would be advised to have at least 5% deposit to get a half decent deal.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[MelanieGiles]

Hi again

You will be eligible for a mortgage straight away, but as James says expect to pay a little higher than high street rate until your credit rating has repaired. I would suggest that you look at taking a fixed rate for 2 years to bring you certainty of the level of mortgage payments, but allowing you to return to normal interest rates at a fairly early stage.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk