My IVA journey

[Amiable]

I finished mine two months ago, and have still heard nothing off the IVA practitioner that runs my IVA concerning my completion certificate apart from a rude phone call to advise that it can take '6 weeks to 6 months'.
I must say one of the most depressing things about the IVA is this final bit, where I wish they could annul it on the day of the last payment, rather than dragging it out for months and months in some sort of endless procedural nonsense.
I too think that the IVA of 5 years is too long, it's punitive, and excessive, and really we need a better way of resolving debt repayments than this. I do think the whole system is a sort of punishment for having got into debt in the first place.
As much as it has helped, it's also taken it's toll. And the 4 times my IVA was sold on to 4 different companies each year was dreadful, as I had to explain to each of the tediously incompetent companies that I had completed a whole 18 months of PPI recovery nonsense at the beginning. I would say to anyone wanting to enter into an IVA then be prepared for the long haul, and the possibility of the unnerving 'sell on' that your IVA can be a part of.
I know this might sound a bit miserable, but I think it' right for people to be aware that it's a bit of a punishing thing to enter into, even if you have paid every payment and done everything well like I did.
But the benefits are specifically being able to pay back a single amount, having no interest added, and being free of the stress and worry and having no one chasing you, ware the things that keep you going. I would advise to anyone taking one out to be honest, and to pay regularly, and try not to default. People who need these are generally poor with their finances like myself, so keep an eye on your historical bad habits. Believe me, it's better to pay this off than to convince yourself you need another treat or holiday instead, you can do that after you've finished your payments!
I think the last bit waiting for the completion certificate has been the most annoying, and as I really just want to flee all of it as soon as possible.

[Amiable]

Apologies if this post sounds a bit bitter, but I blame myself for getting into a financial mess in the first place, but I wanted to share my real feelings and get it off my chest so to speak. As good and helpful as the IVA has been, it's also been very stressful too and taught me to be completely competent in dealing with my finances, a tough lesson, but an important one to learn.

[Foggy]

Yes, an IVA can be a tedious shackle on life, but, at the end of the day, we got ourselves there and, as you suggest, there is a rehabilitation role to the IVA other than debt repayment, for which I am actually grateful. I had gotten out of touch with the realities of money .... plastic, 'magic', cards that I could mentally and emotionally divorce from real money and repayment. Confusing what I 'needed' with what I 'wanted' and buckling under the comsumerist advertising and pressure we are all still constantly subjected to.

Having spent a few years dealing with cash and accounting for every penny, I now, 6 years on, know the difference between 'want' and 'need' and still budget carefully. I manage to live reasonably well, and, yes, still have a few 'wants' fulfilled. I owe no-one a penny and have money in a savings account.

I imagine the 'powers that be' did intend a punishment element to the arrangement, at least subconsciously, too --- after all, a few centuries ago we would have been pilloried or even hanged for non-payment of debt ... so, I reckon, on balance, I prefer the IVA.

Definitely a lot of downsides to the process, but concentrate on those upsides you mention

[Amiable]

Thanks Foggy! I think I just wanted to share the reality of it with those who are beginning or mid way through the process. And to keep mindful of how we all got there, and what to learn from it. Yes, it's such a relief to enter an IVA, and to complete it and learn from it has been invaluable. But it's serious stuff, and I suppose I wanted to point out that as much as the rose of it's completion is the scent of financial freedom and responsibility, the thorn of how we got there and how we had to resolve our issues it still stings, and that in a way is not a bad thing to remember.

[Foggy]

Yes ... and there are a few firms that still 'sugar-coat' the process, leading people with unrealistic expectations to sign up and, ultimately, fall foul of the restrictions which were never explained. It is always better to go in with eyes wide open.

[Amiable]

Indeed. You are quite correct. Did it really take you six months to receive your CC letter?

[Foggy]

Indeed. You are quite correct. Did it really take you six months to receive your CC letter?

It did in my case -- but I was with a firm that historically viewed the 6 months admin period at that time as the norm, rather than the maximum period granted. Some firms manage the process in a few weeks, others a couple of months.

[Amiable]

Indeed. You are quite correct. Did it really take you six months to receive your CC letter?

It did in my case -- but I was with a firm that historically viewed the 6 months admin period at that time as the norm, rather than the maximum period granted. Some firms manage the process in a few weeks, others a couple of months.

I've been told it will probably take another month, it's been 2 already, so I assume 3 months to be the norm. I have no choice but to wait. But I'm looking forward to receiving it.

[luluj]

An iva is not an easy option; but is a great tool to learn from ... well done for reaching the end of your journey. The certificate will soon arrive and then your debt free life can begin.

[Moses007]

Is this done by all of the Debt Management Companies or only a few companies will take a lot of time to approve the IVA application?

[Foggy]

Is this done by all of the Debt Management Companies or only a few companies will take a lot of time to approve the IVA application?

The problem here is the length of time taken to close the arrangement and issue the certificate of completion. Most providers take around the same sort of time to set up an IVA --- although Creditfix do appear to have more delays than most in getting creditors to respond.
Most firms also take around the same times as each other in closing, from a few weeks to a couple of months. However, in this case, Aperture are the slowest and often take the full six months.

[Amiable]

Here I am nearly 6 months after I finished my final payment, and I am waiting for the completion letter still. There are 15 days off the 6 months mark. What annoys me about this is this is that the Insolvency register will still probably show me as having an IVA a further 3 months, then after that is the credit file update period. So the IVA is generally 6 years often more, for a debt that was relatively small. I have been lucky as my employer has been ok with my openness and transparency in advising them of my situation and that's been fine. But now I am being made redundant, and I cannot apply for roles in my area of expertise without having to explain all of this again to potentially a new employer. It was redundancy that caused this IVA in the first place. This delay in the letter is excessive and punitive as I've said before, and this could have been sorted out ages ago. I still receive letters advising me that my debt has been sold on to other 'financial companies' twice more lol, even though this is to be 'written off' at some unspecified time. I cannot wait to get rid of this nonsense. I would advise people to enter an IVA as a remedy for debt repayment, but be under no illusions of the impact it can have long term especially if your employment is financial services, and the effects it has on your credit rating and ability to rent a house, and a lot of other stuff. I managed to survive this relatively intact, but it is a mixed blessing an IVA, and 6 years is a long long time. What should I do if they have not processed my letter by the 6-month deadline?

[Foggy]

Unfortunately, most IVAs have the ability written in to extend this admin period by written notice.

Your only recourse is to lodge a formal complaint with your IP which can then be escalated to the IPs regulatory body via the government gateway here: https://www.gov.uk/complain-about-insol ... actitioner

Unfortunately this will only result in a slapped wrist and, possibly, a fine for the IP, but I would urge everybody so affected to lodge that complaint.

[Amiable]

Well, I did receive the completion letter within a week of the final 6 month period. I have now only about 3 weeks till it clears off the Insolvency Register. I have received about half of the letters from the agencies advising that the money has now been written off from the original debt. So nearly there. Yes, I would say that from February 2014 to January 2020 is the total run time of the IVA, and I do not know how long the credit file will be affected beyond that? Maybe a month or so that it will show I had an IVA? After my last redundancy, I have just stayed unemployed till the insolvency register clears, as my skillset is financial lol, and I always have credit searches whenever I apply for work. But although I still think IVAs should be set for a lesser time, and the clearing of the information quicker, this I will just have to deal with. How long does it take for the information on the credit file to clear? Will I be waiting another 3 months for that as well? Ah well. I still find these IVA very helpful and useful no doubt, the length of time everything takes is too long, and it does not enable you to get on with your life at all easily with all the information hanging over your head. Glad that it is over, but more bitter than sweet for me.