IVA Certificate – What You Need To Know
Many people are confused about what exactly they’re supposed to do once they make their final IVA payment.
This is why so many people have trouble acquiring their IVA completion certificate upon completion of their IVAs.
In this post, I’ll be discussing the importance of your IVA completion certificate as well as how you can acquire it quickly once your IVA comes to an end.
What is the IVA Completion Certificate?
As the name suggests, your IVA completion certificate is a document which certifies that you have completed your IVA and that your debts are now written off.
It’s the document which you will use as proof in the future for the completion of your IVA in case you ever need it.
Your IVA completion certificate will typically be sent to you by your insolvency practitioner (IP), typically by mail.
Please note that you will only receive your IVA completion certificate if you have made all of the payments that were mentioned in your IVA proposal.
Your IP will certify that you’ve made all your payments and then draft up your IVA completion certificate to send to you.
How Soon Will I Receive My Completion Certificate Once My IVA Ends?
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, you will receive your IVA completion certificate within twelve weeks (three months) of you making your final IVA payment.
At the same time, your IP will also contact the Insolvency Company and inform them of the completion of your IVA.
How Long Does an IVA Last?
An IVA typically lasts five years. It can extend up to 7 years depending on the situation.
Please note that while an IVA can end in five years or even earlier, it stays in your credit file for six years.
If your IVA gets extended to more than six years, then it gets removed from your credit file when your IVA ends.
Having the mention of an IVA in your credit file severely impacts your credit score and hinders your ability to obtain credit even after it has ended.
When you’re is IVA in process, you can’t obtain credit of more than £500 without permission from your IP.
What is the Significance of My IVA Completion Certificate?
As I mentioned above, once your IVA ends, your IP contacts the Insolvency Service and informs of the fact that you’ve made your last payment.
As a result of this, your name will get removed from the Individual Insolvency Register.
Once your name gets removed from the Individual Insolvency Register, the only proof you will have of the fact that you have successfully completed your IVA will be your IVA completion certificate.
It’s important for you to hold on to your IVA completion certificate and keep it safe because you never know when you might need it.
It can help you in a number of different ways such as when you’re trying to obtain credit after your IVA has ended.
When you apply for a credit card, for example, or if you apply to rent a space, a credit check will be performed on you. The mention of an IVA in your credit file will be used against you and in such a circumstance, you can present your IVA completion certificate to assert the fact that you were responsible with your payments and have completed it successfully.
Another significant reason as to why you should get your completion certificate as soon as possible is the fact that IVAs in the UK have a windfall clause.
A windfall clause states that any unexpected sum of money which you may receive (such as by winning a lottery or through inheritance) has to be paid towards your IVA.
Until you get your IVA completion certificate, you’re still bound by the terms of your IVA. Thus, if you receive a windfall between the time during which you’ve made your last payment but have not received your completion certificate, then you’ll have to hand over the sum to your IP. Thus, in order to avoid this, you should strive to obtain your completion certificate as soon as you can.
How Long Will it Take for My Name to be Removed from the Individual Insolvency Register?
Your name will typically be removed from the Individual Insolvency Register (IIR) within three months of you making your final IVA payment and confirmation by your IP.
If it’s been more than three months since your IP’s confirmation and your name still has not been removed from the Individual Insolvency Register, then you should contact your IP. Alternatively, you can also contact the Insolvency Company directly.
As I mentioned earlier, once your name gets removed from the Individual Insolvency Register, your completion certificate will be the only proof you have of the fact that you have completed your IVA successfully.
Thus, you should try to obtain your completion certificate before your name gets removed from the Individual Insolvency Register.
For more information on when your name will be removed and how soon you’ll get your completion certificate in the UK, you should contact your IP.
I have not Received My IVA Completion Certificate. What can I Do?
If it’s been more than 3 months since you made your last IVA monthly contribution and you still have not received your completion certificate in the mail, then you can:
- Contact your IP and ask for more information and reasons as to why there has been such a delay.
- Comply with any requests that your IP may have which may pertain to the completion of your IVA.
- Contact the Insolvency Company directly to ask them for reasons for the delay.
- Don’t panic. It’s definitely a stressful situation but panicking isn’t going to solve anything.
Communication with Your IP
In such a situation, I highly advise that you keep in touch with your IP and ask them for help. They’re informed with the ins-and-outs of the process and will help you get your completion certificate as soon as possible.
I’ve seen a number of people completely lose touch with their IP once they make their last monthly contribution and I highly advise against this.
Just because you’ve made your last monthly contribution does not mean you’re out of the woods. You still need your IP’s help to ensure that you receive your completion certificate within a reasonable time.
Your IVA completion certificate is the only document which can prove that you’ve successfully completed your IVA once it ends.
Thus, it’s highly important that you do all you can to make sure you receive it as soon as you can.