5th year in and my equity loan was approved and it is currently being paid off to the creditors and I believe it will take 4-6 weeks to get my certificate.
Question, does the IVA get removed from our credit score immediately or does it get removed at the end of the 6th year regardless if you end it in the 5th year? I've read conflicting reports and CreditFix havent given me any information.
Once you have made your final payment
Once you have mad your final payment into the arrangement (YHEY!! -- but not quite over yet) your IP will conduct a final review before issuing you with the Holy Grail -- your Completion Certificate / Notice of Due Completion. This isn't as impressive as it sounds but is an important piece of paper which can take up to 6 months to arrive, but is often much faster. Until you have this you are still in the IVA and bound by its terms.
When your IP issues the certificate the Insolvency Service is also informed. They, in turn, report to the three credit reference agencies. You will be removed from the Insolvency Register within three months, in the meantime your arrangement should be shown there as completed. Also, within a few months, your IVA should be shown as completed in your credit files and defaulted accounts should be marked as satisfied / partially satisfied and show a zero blance. Whether you want to challenge any creditor who doesn't do this is up to you, considering that the whole shebang, however marked, will drop into oblivion on the 6th anniversary of the default date anyway. If you do want this corrected then, again, the Data Controller is the person to write to.
- What is the final review from your IP consist of?
- "Until you have this you are still in the IVA and bound by its terms." does this mean we still have to report on income changes, do an expenditure review if requested?
- Once IVA is completed i.e got certificate, are we free then to sell property if we want to or do we have to wait until IVA is removed from credit score?
Reason i ask the latter question is because my wife and I are now separated but are being forced to live with each other due to the joint IVA. Would be free to sell up, a rent/buy somewhere else separately or would it be difficult as the IVA will still be on our credit scrore?
Once you have received your completion letter, your IP should inform Land Registry to remove the restriction placed on it so you can then sell your home.
Your completion will state that all payments have been made and your debts have been written off.
You won't have to report anything financial once the final payment is made - your money is yours to do with as you wish. However if something comes to light. i.e an inheritance which was known about during the IVA then you should declare it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
On the house front : First and foremost, confirm with your IP that any restriction has been removed from the title deeds. If this isn't done it will cause delay and embarrassment on sale, as the restriction will show up in buyers searches.
Renting could be an issue as, until the IVA disappears from credit reports it will bomb your credit score --- this is often worked around with bigger deposits / rent up front or a guarantor.
Buying again has to be handled with care as well as mortgage lenders often ask about past IVA's, even if they do not show on the credit searches --- a specialist broker can help here, and can often get high street rates for those of us with an IVA in our past.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014