Once you have completed your IVA the insolvency Practitioner will issue a completion certificate, this is an important document and should be retained by the individual
Once your certificate is received you can be removed from the public insolvency register and then it is a case of waiting for the IVA to come off your credit report.
An IVA remains on your credit report for six years, from the date it was created or until your IVA is successfully completed if it lasts longer than six years.
This means, if it took five years to complete your IVA, then in another 12 months it should be removed.
What is an IVA completion certificate?
When an individual has met all their obligations under the IVA, the IVA will have successfully concluded usually within a 5 year period.
At this point the supervisor will prepare an IVA completion certificate which will be provided to the individual and their creditors.
The completion certificate is the individual’s evidence that they have complied with all the terms of their arrangement and that it has been successfully concluded.
How will I receive my IVA completion certificate?
Your IVA completion certificate will be sent to you by your Insolvency Practitioner, usually as a letter. At the same time, the Insolvency Practitioner will let the Insolvency Service know, so that they can remove you from the Public Insolvency Register. It can, however, take up to three months before you are removed.
You should receive your certificate within twelve weeks of the final IVA payment, after the Insolvency Practitioner has finished the administration of your IVA.
You will only receive your certificate if you have made all the agreed payments to your IVA. If the Insolvency Practitioner believes there are Payment Protection Insurance mis-selling claims (PPI) that still need to be paid into your IVA, then it is possible for your IVA to be successfully completed with the Insolvency Practitioner assuming the role of Trustee. The Trustee’s role is to release PPI for the benefit of creditors. Once an IVA has been successfully completed, you will not be expected to make any further monthly payments.
Why is an IVA completion certificate so important?
Aside from the fact that an IVA completion certificate discharges you from all of your legal obligations, there are two major actions which will follow:-
- You will be removed from the insolvency register
- You can start to rebuild your credit rating
Rebuilding your credit rating and effectively your life will take time, probably involve relatively small steps but it is a process you may wish to begin as soon as the completion certificate has been issued. It is very important to start and rebuild your credit rating as the IVA reference will be removed six years after it began. So, if the IVA lasted five years then it will still be on your credit file for a further 12 months.
What is the effect of an IVA completion certificate?
The IVA completion certificate is an important document and should be retained by the individual. This is because:
- It will mitigate any future claims against them arising from creditors bound within the IVA, should they pursue the individual following the completion of the IVA.
- It grants peace of mind to the individual that the IVA has been a success.
- It may assist the individual in obtaining future finance, such as a property mortgage, as it will confirm to the bank that the IVA has been discharged, although this will be dependent on the requirements of the lending bank.
Whilst the terms of each IVA will vary, it is important to note that often the completion certificate will not affect the duties and powers granted to the supervisor under the arrangement. Mainly this is to enable the supervisor to remain empowered to make final dividend payments should, for example, a creditor be slow to bank a dividend cheque.
This can also serve to ensure that any assets which were caught under the IVA trust remain within the trust. An example of such an asset is Payment Protection Insurance (PPI) claims. Whilst it is no longer possible to initiate PPI claims, for many years individuals discovered they were entitled to a PPI refund from a period in which they were subject to an IVA.
How such claims are dealt with should be clearly stated within the IVA proposal at its inception and should be discussed with the Insolvency Practitioner. The individual will be required to sign confirmation of their understanding of the terms of the IVA by the Insolvency Practitioner as part of their engagement process.
It is therefore important to ensure that any such claims are communicated clearly to the former supervisor, as the former supervisor will ensure that these funds are dealt with correctly in accordance with the terms of the IVA.
How long to get IVA completion certificate
You should get your Individual Voluntary Arrangement (IVA) completion certificate a few weeks after you’ve made your last payment. How long this takes will vary based on the IP and the complexity of the case.
For example, if you’ve not paid some assets that you need to and your IP has to get in touch to tell you to do this, you won’t get your completion certificate until you’ve done this.
Once you make your final IVA payment, your IP will get to work and analyse whether all of your agreed-upon payments have been made or not. Once your IP confirms that you have made all the necessary payments to your IVA, they will send you your IVA completion certificate.
Typically, the time scale for receiving your IVA completion certificate is within twelve weeks (three months) of you making your final IVA payment.
At the same time, your IP will also contact the Insolvency service and inform them of the completion of your IVA.
What can you do if you have not received your Certificate?
If you have been waiting longer than 8 weeks for your Completion Certificate you must contact your IVA company. Ask the reason for the delay.
It is possible there could be a delay because there are assets which still need to be realised for your creditors. This could involve property or an outstanding compensation claim.
However if you are told that the company is just to busy this is not good enough. You are within your rights to escalate a complaint, unless you receive your Certificate within 2 weeks.
What does an IVA completion certificate look like
A IVA competition certificate basically will be a letter from the insolvency practitioner that ran your case to explain that you have settled all debt legally that where added to your proposal.
Can an IVA company withhold my IVA completion certificate
Yes they can if there are any outstanding issues, the most common issue of late has been the possibility that an individual could receive compensation for the mis-selling of PPIs.
Can i get a copy of my IVA completion certificate
Yes you can, simply write to the insolvency practitioner that dealt with your case, give them your name and case number, they will apply send you a copy of your competition certificate free of charge.
Can you get a mortgage after an IVA?
Yes, you may be able to get a mortgage after an IVA but this will depend on your overall mortgage affordability hence how much mortgage deposit you have (the more mortgage deposit you have the easier it is for you to get a mortgage. As your IVA will still be on your credit file for another 6 years, this is where a lender will ask for your completion statement.number, they will apply send you a copy of your competition certificate free of charge.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.