After an IVA

After you have decided to apply for an Individual Voluntary Agreement, you find yourself in the fortunate position of having your IVA proposal approved.

Within five years your Individual Voluntary Agreement will typically be completed.

Now, you are on your way to being debt free...

You stick to your budget plan and pay off your payments every month, after five years or so, you finish your IVA – all outstanding debts are written off and creditors will no longer be allowed to contact you regarding those balances.

So, what happens now?

The IVA will stay on your credit history for the next 12 months; however, some credit companies see it as something positive since it shows a lot of discipline and determination on your part to keep up five years of regular monthly payments.
Upon completing your IVA, a statement of completion will be forwarded to the Insolvency Service; your credit history will then be updated to reflect the IVA completion.

After the IVA & Staying Debt Free

After having successfully completed the IVA you'll no doubt want to stay free of bad debt. You'll need to take steps in preventing your debts from accumulating again. You can start by:

Improving your current credit ratings so you can apply for loans if and when the need arises.
You can ensure that your credit history was updated correctly by obtaining a copy of your history from a credit agency. If you find some details to be inaccurate, you can inform the agency and request for a change.

To stay free of debt and to avoid incurring any more arrears, look at your income and expenditure, then create a budget based on your current financial standing and stick to it. You must be aware of your current finances so that you do not spend beyond your means.