If you are in the last few months of your IVA, you will be looking forward to making that last payment. It may feel a lot like getting to the finishing line of a marathon…
But when should you cancel your standing order? How long does it take to get your completion certificate? And when exactly are your debts written off?
This article looks at what happens at the end of an IVA.
Are you sure that is your last payment?
With a simple five or six year IVA, possibly with a further twelve months added instead of a remortgage, you may know exactly when your 60th or 72nd payment is going to be made.
But sometimes it’s less clear:
- there may be some payments outstanding if you had a payment break or extra months were added because of additional income;
- a change of IVA firm won’t by itself change the end date, but admin problems could happen so there is more chance that payments are outstanding;
- if you have a house but your IVA firm hasn’t spoken to you about releasing equity, don’t assume an extra year isn’t needed.
So it’s always worth checking with your IVA firm a couple of months before “the end” that Oct 2018 or whenever really will be your last payment.
A final review by your IVA firm
Your IVA firm will do a final review. Most of the larger firms have a special Closure Team that deals with this. Some firms do the review in the last couple of months, others wait until after your final payment.
It’s a bit like your annual reviews. Some firms ask for bank statements, payslips or a P60. They want to check if you had a lot of overtime, a pay rise, a bonus or some other windfall that you haven’t told them about. If you have, you may have to make some additional payment.
Hopefully after this, the firm will confirm that no more payments are needed and you can cancel that STO or DD.
What if they don’t get in contact?
If you haven’t heard from your IVA firm a couple of weeks week after your last payment, I suggest phoning or emailing them. Ask what you need to provide for the final review. The more you are pro-active at this stage, the quicker this will be over.
If they still don’t talk to you, then send them a weekly email. After a month put in a formal complaint.
If you want to cancel your STO / DD, I suggest you put the money you would have transferred into a separate savings account, don’t spend it. That way if it turns out there is still some money owing, you have it right there.
Your IVA firm closes the IVA
Once the Closure team confirm that you have made all the payments, they will distribute the last money to your creditors.
If you haven’t already agreed to the firm collecting PPI after your IVA has finished, you will probably be asked to sign something. If you don’t, the firm may refuse to close your IVA until they are certain there isn’t any more PPI to come – this could be years.
This may feel unfair but they are allowed to do this. If you want your IVA closed, you are going to have to sign.
This closure procedure used to take 6-8 weeks, but sometimes there can be long delays. If your Completion Certificate hasn’t arrived after three months, I suggest asking every few weeks what is happening and whether you need to provide any more information.
If it gets to five months after your last payment, put in a formal complaint to your IVA firm. At six months put in a complaint to the Insolvency Service about the delay in closing your IVA.
At last you will get your Completion Certificate:
- Your IVA is over. The final dividend has been sent to your creditors and the remainder of your debts are written off.
- Your IVA firm will update the Insolvency Register. Your name stays on the register showing as “completed” for three months, then the entry is deleted.
- The Insolvency Register sends the information that you IVA has completed to the three Credit Reference Agencies. The IVA marker will remain on your credit records until 6 years from the start if your IVA. or uuntil it is completed, whichever is later.
- If you have a house, your IVA firm will remove the restriction placed at the Land Registry so you can sell it.
Check everything has been updated
You should check that all the has worked properly. Leave it a couple of weeks and then look up your details on:
- the Insolvency Register – if this isn’t correct, call your IVA firm and ask them to correct it:
- Experian, Equifax and Call Credit – you do need to check all three. If your IVA still shows as active, send a copy of your Completion Certificate to the credit reference agency and ask them to correct it;
- Land Registry – if the restriction is still showing, call your IVA firm.
After this, wait another month, to give your creditors time to update their records.
Then you can start the process of cleaning up your credit file, see How to improve your credit rating after an IVA for details. This will ensure that your defaulted debts disappear when they should and that you start getting positive ticks each month on your credit records.
The process of improving your credit score is exactly the same if you have settled your IVA early.
So that’s the end. Except…
After that, everything has finished. You shouldn’t hear from your IVA firm again. There are two exceptions here.
One is unusual, and if it happens to you it’s good news – see Why have I been sent a cheque for unclaimed dividends? for details.
The other one is PPI complaints. If your IVA has finished in the last few years, you have probably been asked to agree to your IVA firm collected PPI after the closure. If your IVA finished longer ago, your IVA firm may still claim any PPI refunds you apply for, see PPI after IVAs have finished.
How equity release works in an IVA
How long do IVAs last & how many fail
Debt free – what will you do now?
Holmes says
Hi. I’m 4 years in to my IVA I have noticed on my paperwork that one of my creditors has not come forward. I owed them 12k. My other creditors have come forward totaling another 6k. All together this should be 18k What happenes if the creditor of 12k does not come forward?
Sara (Debt Camel) says
It is a bit premature to be worrying about this, the missing creditor may well come forward and submit a claim.
I am assuming they were notified about the IVA being set up but didn’t vote at the meeting. They are still bound by the IVA and the debt will still be wiped out at the end of the IVA. If they don’t submit a claim, then the money they would have been entitled to will be distributed between your other creditors giving them a higher dividend. But your IVA firm will be trying very hard to contact them after the last payment so this isn’t necessary.
Chris says
Hi I was in a 6 year iva I paid a full and final settlement in year 4 6 years is up Feb 2018 will it automatically go from my records or will I have to do something
Kind regards Chris
Sara (Debt Camel) says
You should already have disappeared from the Insolvency Register and any restriction on the sale of your house should have been removed from the Land Registry. Have you checked these?
The IVA should disappear after 6 years from your credit records without you having to do anything.
If all your debts were correctly marked as defaulted before or at the start of your IVA, they should disappear at that point too.
Denise says
hi we went into an iva 6 years ago, since then they have changed companies when we first went into an iva they said it would be for 5 years and if they can’t get any equity out of our house would have to do another year. now this new company is saying we have to do 1 more year so in total it will be 7 years surely these companies can’t get away with doing this to people is there any one we can talk to about this matter
would love your advise
Sara (Debt Camel) says
Hi Denise, you need to check your IVAs terms. It may be that when it was approved, it was set up as six years? You should have had this explained to you. But if the documents you have say five years, ask your IVA firm to explain why you are now being asked to do a 7th year.
ann dolan swarbrick says
my IVA finishes in 6 months (four years) never missed a payment – I have paid just over £27k on a det of £40k Recently I received a anon. text saying “they were going to take my house and my pensions and declare me with dementia. I am a senior citizen and did not go into debt as a volunteer – I paid for my husbands care £87k. Halifax hold my “liefetime mortgage of 56k. Can they do this…..
Sara (Debt Camel) says
Hi Ann, if you are getting a lot of these (you have commented about them before) you could talk to your IVA firm or go to your local Citizens Advice. It doesn’t sound as though you have anything to worry about legally, but it would be good to have your mind put at rest by someone who can talk through the details with you.
Beverley Haines says
Hi we had a five year IVA which finished in October this year. We heard nothing so I rang the company who told me that we had in fact paid too much money (2 months overpaid) I was told to cancel DD and that we would receive refund within 3-5working days. This didn’t happen so called them again I was told that we could not have refund until they had received overpaid money back from creditors. Still not heard anything from the company with regards to final paperwork to say IVA is finished. What do you suggest ?
Sara (Debt Camel) says
I am surprised they have already distributed your last 2 months payments to your creditors… I suggest putting in a formal complaint in writing to them saying a) they haven’t kept you informed, b) they told you you could have a refund straight away and c) if they have already distributed the money, why have you not been sent a completion certificate? Add that you will be taking your complaint through the Insolvency Service Gateway if this is not resolved with 28 days.
See https://debtcamel.co.uk/complaint-iva/ which has more info on complaining about an IVA.
Graham Lyons says
We completed our IVA making our last payment approximately 4 months ago.
We are still receiving letters from the IVA company stating they are still awaiting P60s from previous years of which we have sent and now they are stating we are in breach of the Voluntary Arrangement.
We have adhered to the terms and conditions within the agreement.
Since we began the IVA we have had no fewer than seven case officers of which I have explained this to the company.
Sara (Debt Camel) says
Is it just the old P60s they are asking for? Have you been having annual reviews?
Graham Lyons says
Hi, they have asked for the old P60s,
Yes we have had annual reviews
The last annual review I declared an increase in my wages of which they increased our payments
Sara (Debt Camel) says
Well send them again along with a pointed note saying they have already had these. This is tedious, but it’s probably going to be fastest to resend what they are asking for even if it is annoying.
Graham Lyons says
Unfortunately we do not have the P60’s for the years they are asking for 2010 up to 2016 .
My wife resent the previous P60’s ie 2015,2016 but these were the originals due to her being stressed with the whole saga
I contacted the company to explain that the payslips and also the P60’s were resent, but they are still requesting them.
I am seeking legal advise regarding this situation as i feel we have adhered to the clauses set out by the company and
feel that it is not our fault that they cannot find the relevant paperwork within their archives.
Gary098 says
My IVA practitioner says she did not want p60s but I’ve still sent them. To come to you in year 5 and ask for them is wrong I thought they should do annual reviews. And at time of review ask for them.
Should of been asked for at annual review times.Not your mistake your IVA companies mistake or insolvency practitioner please always bear in mind your insolvency practitioner is actually paid by the bank to retrieve as much of the debt as possible.
Chris Johnson says
Hi, I am in my 5th year of an IVA. I asked the company (Credit fix) when my last payment will be and they stated December, however there may be a review and I may have to pay for another 12 months or remortgage.
I have never missed a payment. Can I ask, under what circumstances would they ask me to pay for another 12 months as this is devistating news to me. We have another 6 years on our Mortgage and I assumed that after 5 years it would be finished.
Please advise me as I am just so upset by this.
Sara (Debt Camel) says
Hi Chris, this article https://debtcamel.co.uk/iva-equity-release/ looks at equity release. It is disappointing to say the least that this has come as a surprise to you – it should have been clearly explained at the start.
Chris Johnson says
Sarah, thank you so much for your reply.
If I could sort of lay this out. We were in trouble. We were around 57,000 down. However, we have paid with PPI repayments well over 30,000 with a year to go.
I understand this is obviously our obligation to pay. We have. We are more than honest and give everything we can. However, these companies also take a lot off the top. So after our final (this year) payment we would have repaid around £35,000. In your opinion, and honestly, I am only asking your opinion not a final ruling.,,, do you think they will extend it for yet another year? If so, so be it. I just hope I last that long. Work is good, and do far no more heart attacks :-(
Sara (Debt Camel) says
If you have enough equity (see the other article) then you will need to make an extra year of payments. What you have paid in isn’t relevant unless you have repaid all the debts pluas the IVA fees – which you aren’t close to.
If your expenses have risen more than your income, it may be that the amount you are paying could be revised down.
Dave says
Hi Sara,
Our 5 years of IVA payments ended in November, it has been a real slog. My wife and I are both self employed and work for a charity. We both receive a fixed self employed income for the work we do, which is lots of work but quite low wages because of the nature of the business.
Our IVA firm asked for our SA302 forms for the past 5 years which we have sent off.
When the IVA was set up we had been paying about £250 per month to a debt solution company which we could just about afford, so when the IVA stared they kept our monthly payments close to this.
Our wages have never increased over the five years, but all our bills have gone up and our tax credits have gone down, which has meant paying the £250 per month has increasingly become difficult but we got through it by the skin of our teeth. Our annual Income and Expenditure form had us down every time as having over £500 each month to use for housekeeping, clothes, travel and home repairs, this was more like £200. I adjusted the review form every time and sent it back with a question to ask if our IVA payments could be lowered. They never replied and never adjusted the Income and expenditure form. We were forced to find cheaper places to shop and cheaper ways to live knowing one day all this will be over. We have three children and that has been the hardest part, saying NO to them all the time to basic life luxuries.
I’ve chatted to many different people at the IVA firm over the years and explained our situation and they have all been sympathetic but never really helped.
I had a small van for a short period of time and made a little extra money a few times with it which helped us eat. I told the IVA firm about this several times.
But to my horror I had a call from the company last week questioning every aspect of our lives and saying that the extra money I made with my van should have gone towards the IVA. I’ve sent them all my bank statements and I’m now worried that our IVA will fail and we will be made bankrupt.
The stress of all this is slowly killing us.
Is there any advice you can give to help please.
Many thanks
Dave
Sara (Debt Camel) says
I suggest you should reply to them in writing saying that you have given the all the information about the van before and they ignored it so you assumed it wasn’t a problem. You would like them to revist each of your annual reviews as you also feel they have ignored the information you gave them about your expenses increasing.
Dave says
Thank you Sara, you’re a big help. I will let you know how it goes.
Dave says
Hi Sara,
Just to update you on the above, I sent in all the information they requested a week ago with a covering letter.
I included an up to date income and expenditure form, which after all our bills are paid, plus the IVA (£250), leaves us with approx £175 to £200 per month for the five of us to live on. We have been living on this low amount for quite a while, my wife has become an expert grocery bargain basement shopper, so I said if we could reduce the payments that would be great, or if we have to continue the £250 IVA payments for another 12 months we will get on with it and hope the time flies.
They acknowledged receipt of my documents by text last week and said they are dealing with it. This was over a week ago and I have heard nothing since. We haven’t made an IVA payment since our 60th payment in November, which we hoped would be our last payment. We have equity in our house, but it has been confirmed that we are unable to remortgage.
Should I call them and ask what the delay is? The quicker we continue our monthly payments, the quicker this nightmare will end.
In your experience what do you think will be the outcome to all this, and should we just sit and wait?
Many thanks.
Dave
Sara (Debt Camel) says
£175-200 a month is not a reasonable amount for a family of 5 to live on even if your wfe is a demon shopper. From what you have said it sounds as though you need a variation so your IVA will be accepted as completed. I think you should call them and ask what is happening.
Dave says
Thank you Sara.
I don’t know what a variation is but I will contact them and let you know how I get on.
Sara (Debt Camel) says
Sorry, using technical jargon = bad habit :(
Your IVA will currently say (at least alomost all do, I haven’t seen yours) that you need to pay for another 12 months if you can’t remortgage to release equity. To get this changed, your IVA firm needs to draft a proposed “variation” to the terms of your IVA, which your creditors will then vote to approve. This is the normal way to get an IVA amended.
Dave says
Thanks Sara,
I just got off the phone to the IVA company. The same guy I’ve been speaking to. He said he needs to go through everything that I sent in (over a week ago) to see where we stand. He said he should be back in touch early next week.
Thanks Sara. I’ll keep you posted.
Dave says
Hi Sara,
Just to update you again on the above.
It has been a battle to say the least with our IVA firm, over the past few weeks, to convince them that all we’re telling them is true, but having gone through our bank statements, SA302 forms, tax credit and child benefit details etc, with a fine tooth comb, it now seems that they are finally back on our side.
They carefully went through an income and expenditure review with us and agreed that we can’t really afford to continue paying the £250 IVA payment each month, so they are now drafting a proposal, which will be sent to us to sign. It is to ask our creditors if they will accept the IVA as completed. Failing this they will ask if they will accept a greatly reduced payment (£80 ish) for a further twelve months. Failing this we have said we will brace ourselves for a further year and continue to pay the £250 if forced to, just so we can see the back of it and avoid being made bankrupt.
In your experience what usually happens at this stage? We made all 60 IVA payments (£250) without a break, even though it is still only about 15% to 20% of what we actually owe and we have a decent amount of equity in our home. I hope this doesn’t go against us.
It has been the most difficult and frustrating experience of our lives. When we were sold the IVA in 2011 it sounded like a piece of cake, and throughout the five years our IVA firm seemed to be our best friends, but as soon as the 60 payments were made they turned against us and tried hard to trip us up. I’m not sure if this is a usual thing, or if we were just unlucky.
Thank you for all your help Sara.
Kind regards
Dave
Sara (Debt Camel) says
It sounds as though your IVA firm is proposing a sensible way forward. It isn’t unusual for creditors to be asked to accept an IVA as completed in this sort of situation, but I am afraid each case is individual and there is simply no point in me making a guess as to whether it will be accepted.
Dave says
Thank you Sara. I’ll keep you posted.
Dave says
Hi Sara,
I called our IVA firm regarding the mis selling of PPIs and they put me through to a sister company who deals with PPIs. Initially they were keen to pursue the possibility. They said it should be easy to start the ball rolling as they already have all the details needed. The lady I was speaking to then needed to speak to her manager and she came back to me to say that because of a new law we may not be able to keep any money due and it may possibly be paid back to our creditors, so it’s probably not worth pursuing.
She said she was going to look into it for us and call me back. This was last Monday and I haven’t heard anything since.
Is she correct? And shall we forget about it?
Many thanks
Dave
Sara (Debt Camel) says
Well it’s not a new law, but there has been a recent appeal court decision in the Green v Wright case… see https://debtcamel.co.uk/ppi-iva-green-wright/.
Have you had your completion certificate? How long ago? Who is your IVA firm?
Dave says
Hi Sara,
Our creditors had a variation meeting yesterday and they voted to accept the IVA as complete. What a relief. Thank you very much for all your advice on this site, it has been a big help.
What exactly happens next please?
The IVA started on 31/10/2011 and it was accepted as complete yesterday 5/4/2017
Many thanks again
Dave.
Sara (Debt Camel) says
Good news!
What happens now depoends a bit on your firm. Some will go through a normal closing-your-IVA process and ask you for your bank atements and payslips again – but nothing should go wrong unless you have just won the lottery or something, so try to regard this as tedious, not worrying. Some seem to decide they already know enough.
If you haven’t heard from them in a couple of weeks I suggest calling and asking about what wuill happen and when.
Dave says
Hi Sara,
More good news.. Our Certificate of Completion arrived today, 4th May, it was dated 28th April 2017. It seems to have been a quick thing. The creditors only accepted the variation to end the IVA on 5th April. And it is not really a certificate, just a letter. I’m not complaining honest ;-)
Does this mean it is now completely at and end, and we are officially now debt free? Or are there other things up ahead?
And moving forward, what is the timeline now for being removed from the Insolvency register / Land registry restriction, and regarding the credit reference agencies etc.
It says somewhere 3 months to come off the Insolvency Register, but 3 months from when?
Our IVA was first accepted on 31/10/2011, and our first of 60 payments was on 20/11/2011 and our final payment (60th) was on 20/10/2016.
The IVA variation meeting was held on 05/04/2017, and our Completion Certificate is dated 28/04/2017.
Also, what date will be able to start rebuilding our credit score etc. Not that we have plans to get back into enormous debt of course.
Also, do I need to send a copy of the Completion Certificate to anybody?
One last question about PPI. We have never attempted to claim for it, and in original the variation proposal letter it states;
“Should these revised proposals be accepted, whilst I am not aware of any intended or ongoing reclaims regarding the mis-sell of PPI policies, should the client make any such reclaims successfully any redress received prior to the final report, I intend to consider these funds as excluded from the arrangements and be retained by the clients”
Have you any idea what this means please?
Many thanks again.
Best wishes
Dave
Sara (Debt Camel) says
Well done – you probably feel as though the picture on the article above is appropriate!
Yes, with your completion certificate this is finally done and your remaining debts in the IVA are now wiped out. Your details will remain on the Insolvency Register for 3 months – I guess from the date on the completion certificate. Your IVA firm should remove the restiction at the Land registry – check in a month and complain if they haven’t done this.
The IVA marker will go from your credit record 6 years from the start date, so a more few months to go. Here is how to start the credit record clean up process: https://debtcamel.co.uk/repair-credit-record-iva/ but I suggest waiting a couple of months so your creditors have a chance to get it right all by themselves :)
You don’t need to send the certificate of completion to anyone at the moment. But you may need it if you need to write one of the letters in the clean-up link. Keep this certificate forever, it is a piece of paper you do not want to lose.
That PPI clause … it sounds a bit mangled to me. I am guessing that the word “prior” should actually have read “after”… If you think there is any PPI to reclaim, you should ask your IVA firm to clarify this as I think they will be happy for you to do it and keep the money.
Dave says
Thank you Sara,
Yes, the picture above perfectly sums up our feelings, it really is like completing a marathon.
Your help and advice along the way though has been like a well needed piggy back at times, so thank you.
Maybe we should let the dust settle a bit regarding the PPI?. What do you think? I’m pretty sure we have been mis sold this in the past by many companies, but it seems a bit of a cheek to now claim money off them after they have just written off lots of our debt.
Thanks again Sara. I think I will keep our completion certificate in a glass case :)
Sara (Debt Camel) says
I suggest you ask your IVA firm about this now. If you wait a while they may have archived your case and have to get it back to answer your question! Also there is a deadline coming up for PPI claims, so getting them in sooner rather than later is a good idea: https://debtcamel.co.uk/ppi-deadline-august-2019-plevin/.
Dave says
Sorry Sara. (Re your question about PPI above)
Yes – I’ve received the completion certificate, dated 28th April
IVA firm – Freeman Jones
Many thanks
Jeanette McKellar says
Hi Sarah,
I am now in my third year of my IVA. I have been paying the same amount of £149 every month and not missed a payment. I get missed calls every single day from their PPI arm of the company and they have recovered over £11,000 so far. I received a letter saying that my IVA payments will stay the same for my third year, however, I rent my home and work hard, What will happen after the five years as I am now feeling harassed by the PPI section of this company?
Thank you in advance for you’re reply.
Jeanette
Helen says
I had an IVA that began 01/2010 it was a 6 year iva that was at a set fee for 2 1/2 years until my car finance completed then it increased by that amount, I then had a child in childcare so my outgoings increased a lot which left my disposable income less, I sent off my new details and they deemed my affordability was now less. I then went onto have another child who was also in childcare and I worked part time. On my credit file (Experian) my debt was seen as completed closed and satisfied for a while and has now gone off it altogether where do you think I stand as it still says my IVA is active but it’s now over 7 years.
Sara (Debt Camel) says
Have you been making any payments? Who is your IVA firm?
Helen says
I never stopped making payment but when my disposable income was less I paid less
Not sure of it’s name as it changed its name twice during the 6 years. I know I haven’t paid the full amount set out at the beginning but my credit file is clear and my score has gone up does that mean it’s satisfied
Sara (Debt Camel) says
No, I am afraid that just reflects the fact that defaulted debts disappear from your credit record after 6 years. You need to talk to your IVA firm. I think you should be asking if your IVA can be ended now.
Helen Neale says
Thank you I’m just scared that they will re add all my debt to my credit file. Can they do this ??
Many thanks for your reply
Sara (Debt Camel) says
A debt that has disappeared as it defaulted over 6 years ago can never be re-added to your records, this isn’t something to worry about. But you do need to find out what is happening with your IVA and when the expected end date is.
Chris McCoy says
Started a 6 year iva in 2012 Did a full and final settlement in June 2016 last year received my certificate in semptember 2016 I’ve looked on the insolvency register and seen that I’m still on there should I have come of this or do I get removed once 6 years as completed
Kind regards chris..
Sara (Debt Camel) says
You should have been removed 3 months after completion. Talk to your IVA firm and ask why the Register hasn’t been updated.
Kare says
I have finished my iva and I am think of taking my pension early to extend the lease on my flat . Can my creditors ask for the money to be paid to them instead as a windfall
Sara (Debt Camel) says
If you have your completion certificate, you can do what you like with your pension, your IVA has no claim over it.
I always suggest people talk to Pension Wise about taking money from their pension.
Robert Gallaher says
Briefly:-
– started a 5 year IVA in November 2011
– made every payment on time up to Nov 2015
– told by administrator in Nov 2015 to stop the DDM and await their review on the viability of remortgage vs 6th year (I am 73 with insufficient income, in lenders terms, for a remortgage) but i am working full time
– SPAM email (!) in Feb 2016 from another company saying they ‘had taken over the previous company’s IVA book and would be in touch in a couple of weeks..’ No letter, no other contact, I thought it was a scam.
– wrote to the first IVA company for confirmation and got no reply
– haven’t heard a word from anyone since (16 months) and IVA still on the credit record
– I want to retire and repay the ‘interest only’ mortgage from an Equity release (only 5 years to go on mortgage!!)
Advice please on how to approach this negligence on the administrators part.
Sara (Debt Camel) says
Have you spoken to the company that say they have taken over the IVA? If not, that would seem to be the first thing to do.
julia says
I took out an IVA in 2011, coming up for 5 years I had a letter off of NTF financial solutions saying my IVA was coming to an end I paid every month never missing a payment and at the start of the 6th year they estimated my outgoings and income and said I owed more money £727 but from the moment I took out my IVA my mortgage went up nearly £200 pounds and I did tell the IVA company but I still carried on paying the same amount every month, I refused to pay this amount as I was not earning anymore money like they suggested. That all went quiet I had a letter saying everything was on course. Then out of the blue I had a letter saying my mortgage could have been miss-sold and they wanted to look into it. .I know my mortgage wasn’t miss-sold it would be wasting their time. So I didn’t respond I thought everything was finished my IVA was for 5 years and my property was exempt, they were hounding me about this sending letters ringing me up about the mortgage miss-selling it was like they wanted to squeeze every penny they could get they had my PPI refunds also I thought enough is enough, now because they did not get any joy with the mortgage miss-selling they are asking for the £727 again they hadn’t mentioned it for ages and I think just for spite they are threatening to make me bankrupt, I could carry on paying with a struggle but it is the principal I don’t think they should be asking me for anymore money
Sara (Debt Camel) says
When was your last payment? HAve they come up with a statement explaining why they say you owe an extra £727?
Fiona T says
Hi
I am due to pay the last instalment of my IVA which is due at the end of May 2017. My IVA was due to end in May 2016 however it was further extended due to fact that they were unable to release any equity on my property. I have made all of the payments on time and never missed a payment however I think I may have breached a term of my IVA. I took out a credit card which was originally capped at £500 which I believe is permitted under the terms however the credit limited was increased over the last year meaning that it exceeding the permitted amount of £500. I have begun the process of closing my IVA and my Supervisors have requested various documentation from me including a copy of my bank statements. On my bank statements they have noticed a payment to Vanquis and have now queried it and asking for further detail as to the amount of credit, when it was taken out and what it was used for.
I am worried that this will cause my IVA to fail and mean they could make me bankrupt despite the fact that all payments have been made to date and the final payment will be made at the end of the month. Please could you advise me on whether this is going to cause me further problems?
Thank you in advance.
Sara (Debt Camel) says
Did you use the larger credit limit? What is the largest balance you have had?
Fiona says
The credit is about £4,000 and I have used £3,000.
As I was in the process of closing my IVA, the requested from me copies of my bank statements and saw that a payment to vanquis had been made so they are now querying it (i.e the outstanding balance, when the credit was taken out and what it was used for). I could pay about £2,000 to reduce the outstanding balance but want to know whether it’s likely to be an issue first.
Thank you.
Sara (Debt Camel) says
Well it is going to be an issue, but I can’t really guess what your IVA firm is going to say. I suggest getting in touch with them asap, the best thing you can do now is be completely honest and open about what has happened.
Gary says
Hello, I have just paid my final payment to my IVA after over six years. Today I had an email from the company to say that there is negative equity so there will be no extension and my case will proceed to closure. Also that I have made an over payment and they need my bank details. I have cancelled the mandate as advised by three people working for the company… just wondering why I would have an overpayment refund and why this would not go to my creditors?
Sara (Debt Camel) says
If your firm has collected one repayment too many, or has been collecting more than they should, then you should get a refund.
Gary says
Could this mean that my monthly payments were too high? I don’t want to rock the boat by asking how much will be refunded to me!
Sara (Debt Camel) says
It’s pretty hard for me guess what has happened. You are either just going to have to accept whatever “refund” is offered, or you are going to have to ask why it happened / how is was calculated.
Paul says
Hello,
My partner finished her IVA in Feb 2015. That’s the date on the completion letter. Over 2 years ago. There is such conflicting information around regarding when she can move forward with mortgage applications. 6 years from start of IVA, 6 years after IVA completed, 3 years from completed IVA. These are all things we have been advised recently. We are trying to get a mortgage and seems to be very difficult. Dont really want to use an adverse credit lender. She was refused flat by Halifax and although they will not release reason why ( this is frustrating and surely very counter productive from the system ) we think likely because one of her debts within the IVA was with Lloyds. Will she EVER be able to get a mortgage with a Lloyds group lender? Will she ever be completely free of this history? Do Lenders use other methods of credit searching other than Experian, Equifax and Call Credit? There is no trace of her IVA on any of these reports now ( we had the last one removed from Equifax 2 weeks ago ). Obviously we have to be careful not to stamp our credit reports with too many applications so finding this process so tricky and need some solid information. Any help would be very appreciated. Thank you in advance. P
Sara (Debt Camel) says
She can reasonably plan to get a mortgage 6 years after the IVA started, provided that the IVA has ended. So if she ended her IVA early or after 5 years, this means waiting until the IVA marker goes from her credit record 6 years after it started. If her IVA ended after 7 years say, then she can apply 3 months later when her credit record is clean.
Any mortgage lender is likely to look at their own internal records. There is no time limit on how long they can keep these for. You should avoid applying to anyone in the Lloyds group as a result.
Other mortgage lenders may also reject you. You may be asked on the application if you have ever been bankrupt or in an IVA. To avoid these problems, I suggest going to a broker that specialises in post IVA mortgages. You should be able to get a mortgage at an OK rate, it’s just a question of knowing who to apply to.
Paul says
Thanks for the quick response Sara.
We dont really want to use an IVA specialist lender, their rates would be double the high-street at about 3%.
Do you know if there is an easy to read comparison list for lending criteria for all highstreet banks and building society’s?
I want to know who we should concentrate on contacting and who we should avoid. I already know about Lloyds banking group. Do you happen to know if TSB are still connected to them?
Thanks again
Sara (Debt Camel) says
Well you can try talking to a non specialist broker, but if they don’t seem clued-up about IVAS, go to someone else. You need to know what banks current policies are. They change. And I am not aware of any comparison list for this sort of thing. This is what brokers are there for, they should know the current market.
Paul says
Thanks again Sara.
Our current experience with 3 different advisers has not been great. Like I said initially there seems to be such conflicting information coming from each person. At the moment I feel like I am doing their job for them. It would seem that depending on who I speak to we can get a mortgage no problem as the IVA start date was in 2009 and then we are told that most will not lend until 3 years after the IVA finished and I also read that you have to wait 6 years after in some cases.
(Big Sigh)
Sara (Debt Camel) says
That is why I am suggesting you speak to a specialist. Sorry.
Jonathan Lindley says
Hi. I’ve completed my IVA over 2 years ago. My credit score is now showing very high on all the credit reference agencies and there’s no indication if the IVA on there either. I am now looking to get a 1st time mortgage. Am I wasting my time? Will the IVA record be lurking on a hard record somewhere? Thanks
Sara (Debt Camel) says
The IVA will still be showing on the internal records of the creditors in the IVA – so make sure you don’t apply for a mortgage to Halifax if you had a debt with Lloyds.
You may be asked on a mortgage application if you have ever been insolvent (YES) or had an IVA (YES). It’s best to go through a broker, not direct to a lender, because of this.
Good luck – you should be fine if you pick the right lender!
Jonathan Lindley says
Thanks. I’m looking at Nationwide who I’ve had no previous dealings with. They ask if I have entered into an IVA in the last 6 years. Obviously I haven’t ?
Robert Roberts says
I’m into 8 years of my IVA I’ve had my equity release carried out and have 4 payments left to the end. I notified the IVA about loosing 200 a month tax credits and a further £200 a month DLA. £400 plus in total.
This was notified back back in Feb 2017 to e IVA company this was inevitable due to my claim being transferred from DLA to PIP.
A family member offered me the money to make final up to December 2017. The IVA company said I could not offer this payment as I would be in breech of my contract IVA ??????.
I now have official documents having saying benifits have been withdrawn due to new rule changes of PIP. I except these benifits have stopped and exceeded the appeal systemn of DWP and HM custom & Revenue. Working Tax Credits.
I am now over £400 less in monthly income. I work 32 hours a week.
Why did the IVA company not allow me to make final payment back in Feb 2017.
Can I make the four months remaining payment today if I can get help from a family member to end my IVA.
Sara (Debt Camel) says
You couldn’t just make a final payment of all the amounts back in Feb 17 – the IVA form would have had to get your creditors to agree to a variation. I don’t know why your IVA firm didn’t propose this.
the same applies now. As it will usually take a couple of months to get a variation through, there doesn’t seem much point. Why not just the money from your family moment to make the remaining 4 monthly payments and let the IVA end normally?
James says
I am going into the final year of my IVA and at the end of this my IVA supervisor told me that I will have to look at the possibility of a re-mortgage. Will I still have to do this as due to my additional payments over the last four years from overtime I will have repaid 100% of my debt to the IVA company?
Sara (Debt Camel) says
You need to ask your IVA company about the details of your numbers. You can never pay more than the full value of your debts plus the IVA fees (you need to know what they are) plus sometime statutory interest on your debts at 8% (but some IVAs don’t include this so you need to know if yours does.)
Paul says
Hi, through no real fault of my own we may have arrears when our IVA finishes in June.
If we say owe £1000 and have to make payments after the finish date in June will my income at that time be taken into account as to the amount of arrears I have to pay or will I just pay back the arrears regardless of income?
Sara (Debt Camel) says
I would expect that you just have to repay the arrears. But if you are expecting this to happen, can you not try to pay some off before then, rather than delay your IVA ending?
Paul says
Thanks Sarah, I’ll try if I can afford the extra. Hopefully it won’t come to that though.
Alan says
Hi Sara,
I’m now in my final year of my IVA, my payments of gone from £174.00 to £620.00 will I have another review before my final payment? Also they extended my Iva from 5 years to 6 even though I don’t own a property as my house was repossessed some time ago.
Sara (Debt Camel) says
There is always a final review at the end of an IVA.
Was there a shortfall on your property when it was repossessed? Was this then included in your IVA?
Alan says
Hi Sara,
Ya there was a short fall on my property I guess that’s why I had to extend my Iva to 6 years instead of 5. But I think my Iva company (Aperture) have not been very helpful with my situation.
Sara (Debt Camel) says
Ok, well it is a great shame you didn’t opt for bankruptcy instead of an iVA, this would all have been over years ago, but you are nearly at the end now and all your debts will be gone.
Alan says
I know, but I’m frightened that Aperture will try their best to get more money off me because it’s my final year. I don’t trust Aperture and if anyone asks me about them I would suggest they stay well clear of them.
Sara (Debt Camel) says
If your income has gone up a lot in the last year it’s possible :( Make sure you point out where your expenses have gone up too!
Lorraine t says
Hiya can you help we have a 6 year IVA which was extended by four months to take into consideration a redundancy payment . The redundancy payment came after we took the company to court (for unfair dismissal) we won but the company was closed down – my husband was awarded abut £3000 but we only ended up received £1100 after costs. So it was agreed that the IVA would be extended to cover the £1100 we received as it was needed to replace a car. We have had a review every year and they have complimented us each time. Out last payment is due January 5th. This weekend we received a breach notice. They are saying that we have not paid them the remainder of the redundancy awarded to us (even though we did not receive this as it went on costs to get any money) We are trying to compile a complaint letter and as of yet they have been unable to supply us with proof that this money has ever been requested is there anything else we can do
Sara (Debt Camel) says
The important thing is that you never received the extra money. Your bank statements should show that if they say that you did. The fact they never asked for it is of less importance (although irritating).
denise says
Hi please could you help, we have been in a iva for 7 years, last year they tried to get equity out of our house but they could not, so they wrote a letter telling us that we must do another year which we did and our last payment was in December 2017 they sent a letter stating this in 2016 we have not heard anything so we thought we would give them a ring to find out that another company has taken over them we could not speak to any one so we left a message have not had a reply surely they should send us a letter informing us about this matter. in the 7 years our iva and now been with 3 different companies and they have informed us before please could you advise us what to do I’m going to email company as well
Sara (Debt Camel) says
This is very annoying, people feel they are like a parcel being passed around between companies with no one actually caring about them :(
As I said in the article about if you can’t get the new IVA firm to confirm you can stop making payments, one option is for you to cancel the DD or STO but then put that money into a savings account, don’t spend it. Then if in a few months they spring into life and say there is some reason you need to pay more, you have it ready and waiting. And if they don’t, you have the start of a nice emergency fund.
denise says
Thank you for quick reponise are they aloud just to change companies without letting people know
Sara (Debt Camel) says
Nothing to stop them :(. Which firm was it?
denise says
first it was Spencer Hayes then Debt Free and now not sure, we have tried ringing but still no response from them
Sara (Debt Camel) says
DFD’s IVAs have all gone to Aperture, see https://apertureiva.com/dfd/.
Chris Johnson says
I am still with creditfix. No response to emails, nothing. We are in limbo and this is totally unfair.
We are of course following advice and saving the monthly payment but this behaivior is unnacceptable.
The SO has been cancelled by the bank but we want now to go forward and enjoy life. WHY DO THESE COMPANIES MESS WITH PEOPLES LIVES?
Jacque Harris says
Hello I have a 6 year IVA but I am reading that the 6th year is only if you own a house and could possibly have equity is this correct? My debt was with Lloyds and NRAM. Thank you
Sara (Debt Camel) says
Sometimes a creditor will only approve an IVA if it is 6 years long not 5 years – NRAM often does this.
Lorna Richardson says
Hello I was with Debt Free Direct I completed my IVA July 17. I still haven’t received my certificate of compeltion tried phoneing the company and been on the website and the company is permanently closed tried the telephone number and it’s out of service I am abit worried how would I get my certificate.
Sara (Debt Camel) says
You need to contact Aperture, see https://apertureiva.com/dfd/.
Terry Hogan says
I am two years into a six year IVA. I have offered a F&F settelement by using some pension funds. The letter from my IP seems to imply that even after closure, I am to disclose any windfalls, tax refunds, PPI claims, etc and these will need to be paid to my IP. In short, it looks like I will never be free of debt. Is this correct?
Sara (Debt Camel) says
My guess is that the letter is only referring to windfalls etc relating to the time whilst your IVA was running. If the IVA is settled this year and you later get a tax refund or inherit money a year later, that wouldn’t be relevant. Any PPI claims would be, now matter when you make them. Is that what the letter sounds like?
Terry Hogan says
Thank you for such a quick response. I will check the wording on the letter and submit another comment, if that is ok? I have been awarded an inheritance from my late mother’s estate. Probate is now complete, but the money hasn’t been transferred to my account yet. I was hoping to clear the IVA in May, when my pension funds arrive and arrange for the inheritance money after the IVA is complete. Would I be breaking the rules by doing this?
Sara (Debt Camel) says
You absolutely would be breaking the rules. If this is the reason you are hoping to take money from your pension – to close your IVA before you get your inheritance – you need to think again. The relevant date for whether an inheritance should be paid as a windfall to your IVA is the date of death, not the date you get the money, see https://debtcamel.co.uk/inherit-dmp-dro-iva-bankruptcy/
I am sorry but you need to inform your IVA firm right away about your inheritance.
Terry Hogan says
Thank you once again for such a prompt reply. Not great news but thank you for explaining it so clearly.
I hope you don’t mind..but one last question.
In May, my outstanding balance will be £5300 and I have offered £5500 to facilitate a quick resolution. I’m thinking that I may as well withdraw the offer, keep the money in the bank and continue the monthly payments of £124. Would you agree, or woukd you recommend finishing the IVA early?
Many thanks for your help so far.
Sara (Debt Camel) says
There aren’t usually many very good reasons to end an IVA early, especially if it involves taking money from your pension which will typically lead to you paying extra tax as well. Unless you expect your finances to improve a lot over the rest of the IVA, it may be best to plod on.
Terry Hogan says
Sara, thank you so much for your advice tonight. I promise, one final question regarding my inheritance.
I read about a Deed of Variation to give the inheritance to another family member. Do you have any experience of this?
Many thanks again
Sara (Debt Camel) says
I am sorry but that isn’t a way around this for you. You need to inform your IVA company of your inheritance and co-operate with them under the terms of your IVA.
Terry Hogan says
Ok, thank you for your time tonight Sara.
Best wishes
john says
who the hell is looking after the customer i have done one sixty months and they are now stealing money from me as my iva rubbish certificates we are not babys most of these company seem to want to now everything and give you nothing
Allan says
Hi I was in an Iva but payed a lump sum as final settlement 2 years ago , could you please tell me if this would be of my records are would I have to wait the full term the Iva would have run as this wouldn’t have been completed till 2020 ,
Sara (Debt Camel) says
The IVA will stay on your credit file for 6 years from the date it started,
Keith says
Hi, I’ve had an IVA for the last 5 years, it should have finished in July 17, but they said we still owed more money due to a pay increase, Which we carried on paying for another 7months. Ending January 18, We were told to cancel the DD, which we did, we’ve always completed the annual reviews & any other checks etc they wanted.
Since then we’ve only heard from them for a PPI check, which had already been carried out earlier in my IVA. Now, they’ve enlisted a company (Tax refund co) to see if we’re entitled to a tax refund etc. We’ve completed the online initial assessment & they then came back with, we could be owed a refund & have sent us forms to sign giving them permission to contact HMRC on behalf of myself & my wife. I’ve read through all my original paperwork from them when I took out the IVA with Tudor Kirk insolvency, which changed to NTF part way through my IVA. No where in any of my original paperwork does it mention this procedure.
Considering it’s now 7months since it ended, I’ve not heard from them, other than for more information.
Absolutely sick of messing about now, just wondering if they are within their rights to ask for this tax check? Considering they’ve had my P60’s & three months of wages slips annually for the last 5-6years.
Thanks in advance
Sara (Debt Camel) says
Yes, firms never tell you about all these delays when you are sold a “5 year IVA” do they…
Read https://debtcamel.co.uk/iva-completion-certificate/ and as that suggests, I think you should put in a formal written complaint to your IVA firm and also to the insolvency Service Gateway at the same time, saying these delays are ridiculous and why couldn’t hey have sorted the PPI and tax refund checks a year ago?
Robert says
Hi, I paid off our IVA and its now stating zero in the IVA on my credit history (start date on the file is January 2014) and I have been removed from the register. All this means nothing in this world and you will be treated the same. I found that out now that I have been told to wait for another 18 months before the IVA will be removed. I am sure you have heard it all before but none of this was in the agreement and I was told a different story as to when the IVA is paid I would be free of this curse. The family helped me pay off the IVA, my wife nearly died during the first year and now as a result she cannot work in the future, I have two young boys who lived through that process and it would have been nice to get on with my life after paying it off but no those are the rules (6 years). Not that I want to borrow money, no, all I want to do is get a better job and it seems in finance if you have 28 years experience with a IVA on your report its just not going to work. Is it not about time Sara that these schemes were scrapped? All these schemes allow is your creditors to keep control of your finances to their advantage. My family would have helped me instead of this curse if we would have been told the truth and now I am offered credit at a staggering 59%. Are the rules there to make sure you fall back into debt?
Sara (Debt Camel) says
I am very sorry to hear of all this. I am afraid it is correct that your IVA will stay on your credit record for 6 years even if it is settled early.
It can sometimes be hard finding a job in finance with an IVA on your record – but people aren’t usually warned about this when they apply.
If you can avoid any credit until the IVA has gone, it would be best.
Chris says
Hi Sara,
Can you clarify please? So if you pay an IVA over a six year period (I am now only 6 months away from finishing) it will be taken off my credit record as soon as I finish? Well, obviously I will expect a few weeks delay on this but is that correct?
Sara (Debt Camel) says
Yes, but “when you finish” is when you get your completion certificate, not your last payment. This can take a few months. If it goes over 6 months, you should complain.
Chris says
Awesome. Thank you!
Gary says
I finished a six year IVA in September last year and finally I’ve been accepted after applying for an overdraft and a credit card. My credit score is Going up by the month, yes it’s taken over six months but you do get there…so hold on a bit longer and things will get better!
Gary says
There are things to be aware of though, hidden obstacles, such as if you try and sell a property soon after your IVA finishes there is a hold on it by land registry that you have to apply to be lifted. Read all small print of your IVA, there’s some right gems in there!!
Sara (Debt Camel) says
yes, the “Check everything has been updated” section in the article above says what you should to check to be sure everything is sorted.
Simon Cunningham says
I have finished my Iva in April and I’ve received a letter from a debt company saying I owe £1850 a month after my Iva was completed. What can I do?
Sara (Debt Camel) says
This debt was included in your IVA?
adele says
Hi I’ve been in my Iva 8 years this coming November my original Ivan was with dfd taken over by aperture since taking it over I’ve received very little communication before the change over I simplified things for myself by asking dfd how many payments remained in my Iva I paid the remaining crossing each month down my last payment being 22nd March I’d gone through all the 12 month extension in Lew of equity with dfd I have been making all the contactrl with aperture I specified in March that they needed nothing more from me and was assured everything was in place for closure and to await an email I chased it up again when there was some regard to a missing payment I had to then reiterate I’d provided evidence to this paymen, i continued to check on progress this went on until July when I was told I needed to provide my last tax return needless to say I would be totally unaware of this had I not made contact I did this my total earnings being 8000.00 FOR THE YEAR I then made contact again and was tolike I needed to provide tax returns for the previous year my earnings 5004.00 FOR THE YEAR they are now saying due to an increase in my earnings I owe an additional 1300.00 but my point is when I entered the Iva I was receiving tax credits and maintenance which as my children are now grown up I’m not so how am I supposed to exist and live on these figures many thanks
Sean Piles says
Hi, im currently going into my 4th year of my iva, my debts were of £11,135 and iv already paid £10,150 and my monthly amount is £300 i pay, im going to pay over my debt, do you know what happens, will i continue to pay the whole 5 years or ? Will i continue and pay more than my debts
Sara (Debt Camel) says
You definitely have to pay the IVA fees as well. That is another few thousand. And in some IVAs you have to pay 8% interest per annum on your debts. I suggest you ask your IVA firm at what point you will have reapiad everything and your IVA can end.
Has your IVA firm collected any PPI? If it has, that will speed up the end.
Guy Argent says
Hello…
I need some help.
I went into an i.v.a. six years ago with a firm called debt free direct. The i.v.a then went into the hands of a company called aperture. I have now made the last payment of 72 months.I chose a six year plan as I didnt want to release equity as my mortgage is a joint one. I heard nothing from Aperture despite many emails, when I rang them they said debt free direct were wrong and i still had to release equity before the closure of my i.v.a..When i said I should of just gone into a five year plan then release equity and it would of been all done and dusted by now, they said yes thats true. Anyway during my i.v.a. time the company applied for ppi i was owned and got back over £10,000, with this and the 72 payments of £114.00 it means that i have repayed back over 2/3 rds of the original debt. Should I refuse to release equity now Aperture say I may have to pay a seventh year. Should I contact aperture and ask them to contact the people I owed money to and see if they will accept closure now and complete my i.v.a. that way. Aperture are not great at communication..
Thanks Guy
Sara (Debt Camel) says
“Aperture are not great at communication.” that is a polite way to put it!
Do you have any old correspondence with DFD which says that you can choose a 6 year IVA and not have to release equity?
guy argent says
Hi.. I have just read through my I.V.A. package that was sent to me in 2012. It does not state the reasons of why a 60 months or a 72 month option was taken. I was verbally given the option of 72 month instead of 60 month repayment so i didnt have to release equity on my house. i cant find that in writing anywhere, but i do remember a telephone conversation saying that one years extra payments would be an alternative to then releasing equity, which is why i chose the 72 month repayment option.
Thanks
Guy
Sara (Debt Camel) says
It is a great shame you didn’t insist on getting that in writing – I haven’t heard before of anyone being offered a 6 year alternative to releasing equity in the fifth year. You can send Aperture a Subject Access request asking for a copy of all your personal data, including all call recordings, but I have no idea if this will included DFD’s call recordings.
guy argent says
Thank you for your advice.. When I spoke to an adviser at Aperture, he said that there were many ex-DFD customers that had this experience. I do doubt, as you do, whether a recording six years ago over the telephone would be there as an S.A.R.
I wonder if could advise me as to why a six year or five year repayment options are in place and why one would benefit over the other?
Secondly, I would greatly appreciate your opinion on how I should proceed from here. Could I ask them to finalise, in lieu of the £11,000 extra ppi they have received that would bolster the creditors repayments, and close my I.V.A. Or should I go with what they say in releasing equity ( I really dont understand this option) or simply pay another years worth of payments ?
This is all new to me as I thought that once I had made my 72nd payment then everything would be done and dusted.
Many thanks for your time and sharing of your knowledge.
Guy
Sara (Debt Camel) says
A 6 year IVA is normally only set up if either a creditor insists (NRAM and HMRC sometimes do) or because there is a house with considerable equity but the client’s name is not on the mortgage. It is NOT a normal option otherwise.
You could choose to put in a complaint to Aperture on this basis, saying there is no explanation for why your IVA has 6 years except the one you have suggested, and on that basis it is unfair and unreasonable to ask you to try to release equity or pay for a further year. Ask for this to be explained to your creditors with a proposal that your IVA is treated as complete.
I don’t know how likely this is to succeed, but there isn’t much harm in trying!
The PPI receipts really aren’t relevant to this decision.
guy argent says
Thank you for your advice…. I will write and ask for closure. Can you give me any information as to how releasing equity on my house works. I owe £38,000 on a house worth £200.00 on a joint mortgage, with someone who would not be willing to remortgage.
Again many thanks.
Guy
Sara (Debt Camel) says
Did you partner sign an RX1 restriction form with the Land Registry when the IVA was set up? If not, then equity can’t be released… AND this is an excellent bit of evidence to point out to Aperture: “my partner refused to agree to equity being released when the IVA was being discussed, which is why 6 years was set as the term and why they never signed an RX1 form.”
guy argent says
Thank you. She did not sign an Rx1 form, was never asked to. I shall contact them and see what they say.
Chris says
Finally. It’s over. So folks. Look forward to the light.
Good Morning Mr Johnson,
Regarding your arrangement with Creditfix – IVA xxxxx, kindly note that your case will come to an end in February 2019.
After that, we shall proceed to the closure of your case and you will receive your completion certificate.
Alexandra says
Hi!
My husband has been paying a company called Clarke Willmott £310 per month as agreed with out insolvency officer. I pay through my tax! According to my calculations this finishes next March (2020). Do I just cancel the standing order or will they get in touch with my husband telling him what to do next?
Regards
Akexandra
Sara (Debt Camel) says
Does your husband have an IVA? Or was he bankrupt?
Stuart Eastwood says
Hi Sara I’m 4years in to my 6 year iva I have increased my payments from £76 per month to £200 as requested because my income improved which is ok but the problem I have is that when I took out iva it went from 5 years to 6 cos the payments were low now my payments have increased I have asked will it go down to 5 years my iva have said no which I have to accept. But the thing that is worrying me is that mentioned releasing equatiy when the 6 years are up because when I entered into my iva I had never missed a payment on any thing it was there advice not to get a remortgage to clear my debts but enter into an iva because no one would give me remortgage after my iva finished therefore it would be easier to right my debt off after 6 years rather than add it to my mortgage ie 16 years cos if I have to remortgage wot was the point
Sara (Debt Camel) says
What was the point indeed. I don’t suppose you have this advice to get an IVA and not to remortgage in writing do you?
Read https://debtcamel.co.uk/iva-equity-release/ for more about equity release.
Sue says
Hi Sara I am in my 6th year of my 5 year Iva. This was been extended after I was unable to remortgage my house to release extra funds. After my annual review I didn’t receive a figure to use as a base before paying 50% of extra income, I contacted the company to be told I don’t have to pay any extra income this year. Is this right? I don’t want to get to the end and then get presented with a under payment.
Sara (Debt Camel) says
It is quite common for the 6th year of payments to be a fixed amount each month. If your IVA firm has said this in writing, then you should be fine.
But in this sort of situation what I normally suggest is that it would be a good idea for you to save up any of the extra 50% amount for overtime etc so that if the worst happens at the end of year you have the money there. And if it isn’t needed you have a nice little nest egg to start your post-IVA life with.
Michael says
Hi Sara I was miss sold a SIPP pension and the cheque went to the IVA company which at the time was been taken over by another company. The cheque was lost due to the take over and it took months for it to be reissued because the new IVA company in my mind did not do any thing to trace the missing cheque or forward information on to the FSCS as requested by myself and a third party. It was only after I traced the cheque back to the company that oversaw the takeover that things started to move forward. I placed an offer of £10000 to go to my creditors and to close my IVA which was accepted at the end of December 2018 but the IVA company will not release the remaining money back to me so thay i can reinvest until they send me my closeure notice. The original cheque was issued last June can they really hold on to the remainder like this.
Sara (Debt Camel) says
Is the cheque for a lot more than 10k?
Michael says
Yes it was for 45k but the IVA company had to pay 13k to the 3rd party that fought my case and got me the compensation from the FSCS. I have been told by Freemanjones that they have £21k+ which will come back to me.
maria clyesdale says
Hi my husband finished his IVA in June 2018 and received his completion certificate shortly after.
Out of the blue yesterday I received a letter from Nat WEst bank saying that they had passed a debt of mine to a debt collection agency.
I rung the DCA as I had no idea what this was all about, only to be told that one of the debts which was included in my husbands IVA which was a joint bank account overdraft debt, Nat West are now chasing me for the remainder of the outstanding monies as they didn’t receive the whole sum from his IVA.
Given that we were not told that this would happen at the end of the term by the IVA company. AFter trying to re mortgage the house and paying an additional years payments, Nat West agreed with all the terms of the finalisation of the IVA and as such accepted that they would receive no further monies from the IVA.
Is this correct that they can now pursue me for the remainder of this debt when it was included in his IVA. I was named on the IVA as being a joint debtor for this particular debt.
Also, Nat WEst have sold the debt to a DCA,
I am now worried sick that I have received this letter and that I am being chased for monies I was not aware that were owed.
Please can you advise?
thanks
Sara (Debt Camel) says
I am afraid it sounds as though NatWest are correct. Your IVA firm should have explained to you what happens to a joint debt: any payments into the IVA reduce the debt but it then becomes a debt that the other, non-IVA partner has to repay.
maria clyesdale says
oh no thats all we need – and no Pay Plan did not explain that, nor can I see it written anywhere in the documents that were signed. after 7 years of struggling to pay the IVA we now just managed to get our mortgage onto repayment as we had to be interest only for the term of the IVA (a condition of the IVA) we are now faced with another struggle with debt which we certainly cannot afford to repay as our mortgage has increased by nearly £700 a month.
I have received no communication from Nat West apart from the letter yesterday saying that the debt is outstanding – they sent no details of what this debt related to, how much it was or anything. how have they managed to pick this up after nearly 8 years? I thought that after a certain amount of years, aren’t debts written off?
As the debt was included in the IVA I have got rid of all bank statements etc as it was over 8 years ago and we were told that the debt had been dealt with, and were of the understanding that as the creditors had agreed the terms of the IVA the debts were no longer live. that is what we were led to understand – how can we deal with this ?
thank you
Sara (Debt Camel) says
“I thought that after a certain amount of years, aren’t debts written off?” no, sorry. You may be thinking of “statute barring”. But because a creditor is not legally allowed to take court action while an IVA is running, any joint debts included in an IVA by only one of the borrowers will not be written off at the end of the IVA and will not become statute barred until 6 years after the IVA has ended.
You can ask Natwest to send you a statement of account which will show what is now owed. You may need to make a payment arrangement for this debt I am afraid.
Chris Johnson says
Sarah, you said “any debts included in an IVA will not become statute barred until 6 years after the IVA has ended”.
If they are included in the IVA though (both our combined debts are included) all creditors agreed to the IVA. If that is the case the debts included in the IVA are concidered finished with. Correct?
As I am two weeks away from the finish line I really could not cope with phonecalls from debtors now.
Sara (Debt Camel) says
My response was in relation to a joint debt where only one person had an IVA. In this situation the joint debt becomes a debt of the person who does not have an IVA and it is not written off when the IVA ends.
Is that the case with you, or do you both have IVAs?
Chris Johnson says
Hi Sarah, it is a joint IVA. Both our names and combined debts.
Sara (Debt Camel) says
In that case the debt will be written off when your IVAs end.
Chris Johnson says
Thank you Sarah. You have been so helpful over the years.
You have helped hundreds on here and thousands of browsers. You should be on TV!
Shazz says
Hi I have completed a 2year IVA agreement what happen next
Sara (Debt Camel) says
2 years is very unusual for an IVA – why was it so short and what does your IVA say shoiuld happen at the end?
kerry lou says
we have a joint 5 year iva that was due to end june 2019, initial payments were £100 a month due to increase to £350 a month once car finance was paid off but by the time the car finance was paid we has less income so the iva company said changed DD back to £100 ( we did not request this they did it from our end of year review ) they have now said that we need to pay a 6th year to make up for reduced payments which we never requested can they do this we do not own our house so the extra year is just due reduced payments following lowered household income.
Sara (Debt Camel) says
Presumably, you couldn’t have paid an extra £250 a month though?
Chris Johnson says
Hi Sara,
I have a question.
We have our final certificates so I then go to places like Noddle and Experian to check my credit score. My plan was to get a credit card purely for petrol for work and then paying off the same day to try to improve my credit score.
My question is, why is my credit rating good to excellant when my IVA only finished two weeks ago? I can see at least one large credit card bill is marked as settled (all other debts are) but on Experian my credit score is 968! On Noddle it’s 613. Both are good to excellant!
Yes I know we always paid our bills and paid them on time including the IVA. But I was NOT expecting this! Have you ever come across this?
If so it’s great news for many others that always tried to pay their bills and will not get totally punished for trying to get out of spiralling debt!
Sara (Debt Camel) says
How long ago did your IVA start?
Chris Johnson says
Six Years Sara
Sara (Debt Camel) says
Then this is how it should work if all your debts had been correctly update. With a 5 year IVA, it and the defaulted debts in it would have remained for another year, but with a 6 year IVA everything should go at the same time.
Sometimes everything going leaves you with an empty or “thin” credit record, which doesn’t give you a great score. But many people have car insurance they are paying monthy, or a mobile contract that shows on their credit record and this can be enough to get you a really good score.
Chris Johnson says
I see!!! Thank you so much again Sara.
Sue says
I’ve just called Aperture to ask if they can remove my data (GDPR) and they have refused, saying they can hold it indefinitely, for up to at least another 6 years? My IVA failed 2012, and I set up payment plans with all of my creditors, all being paid in full apart from one which is still ongoing, and everything was removed from my credit file 2017. Why do they have the right to withhold any of my information when I’m no longer under them?
Sara (Debt Camel) says
A firm has the right to retain data for various reasons, see https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-general-data-protection-regulation-gdpr/lawful-basis-for-processing/legal-obligation/. I would expect an IVA firm to be able to argue that their Lawful Basis For processing included Consent, Contract and Legal Obligation.
When an IVA completes, or in your case fails, you might think that is the end of it – in which case the IVA firm could retail the data for 6 years in case there were any queries or complaints, from you or from a creditor. And of course for their own internal records for audit and tax purposes.
But the Green v Wright court case (see https://debtcamel.co.uk/ppi-iva-green-wright/) basically said that the trust established in the IVA in question continued after the completion of the IVA. And that would also apply to the failure of the IVA. So the IVA could argue that it had to retain records because of this.
Sue says
There is NO PPI in our case, his was investigated by their own company, and we have letter same as they do confirming this. If they keep my data for 6 years from the date it finished i.e. 2012, it should have been removed last year, they are saying they can keep it for a further 6 years? I also have a letter from them dated 2014 stating that they “have no further interest” and “no further dealings with our creditors”. As I’ve cleared my debts without them, why would they need to keep my information?
Sara (Debt Camel) says
I wasn’t suggesting that there is any PPI. I mentioned the GvW case because the decision in that case was that a trust is established by an IVA which continues after the IVA completes. Your last debt hasn’t yet been cleared.
I get that this seems annoying and odd, but does it make any practical difference to you? Presumably Aperture isn’t writing to you?
Sue says
No they aren’t writing or giving any explanation. They said they have no further interest, therefore this should mean they have no interest, not they have interest when they feel like it.
Sara (Debt Camel) says
They are keeping records which are not harming you at all. I suggest you forget about this as I can’t see any likely way to challenge it.
guy argent says
Hello. In November 2018 I made my final payment to Aperture from a six year I.V.A. So I made no more than the 72 payments agreed back in 2012. My case was transferred to a company to see if I could release equity from my house. It turns out now that I cant. I now have a contact from Aperture saying that I must now pay another 12 months into the I.V.A. making it now 84 payments. Do they have the right to enforce this and should I appeal as I already paid the agreed amount?
With thanks
Guy
Sara (Debt Camel) says
In a standard IVA there is an equity release clause saying if equity can’t be released pay another 12 months. Unless your IVA was set at 72 months instead of this – but in that case why have you been asked to look at releasing equity?
guy argent says
The original I.V.A. was set up as 72 months as it was made clear that I was a co-owner of my house and the other person would be 74 by the end of the I.V.A. and it would be highly unlikely that I could second mortgage in a joint mortgage of this type. With that in mind the original people I made the agreement with, said this was the best option. There was never an understanding that an extra 12 months could be added.
Thankyou
Guy
Sara (Debt Camel) says
Ah was this a DFD IVA? They seem to have done this with a few people… I don’t suppose you have any correspondence with DFD that sets out they would apply for a 6 year IVA instead of trying to release equity in the last year?
guy argent says
Unfortunately when I dug all the paperwork out from D.F.D there is nothing to say a six year agreement as an alternative to releasing equity. The The agreement just states that after the 72 payments were made then they would look into the availability of releasing equity. All communications prior to the agreement were verbal over the phone and as the company does not exist anymore it seems pointless to apply for a S.A.R. I suppose I was looking forward to moving on after six years and this is a bit a knockback, I wonder if this has happened to anyone else. Or is there an alternative of making a one off payment to clear it. Also a bit gutted as they also took all my P.P.I. compensation during the period totalling to over £15,000.
Thanks
Guy.
Sara (Debt Camel) says
I think you should send Aperture an email setting out what happened with DFD, the good reasons why it was obvious that equity could not be released and so you were told a 6 year IVA would be proposed initially. Point out there were no other reasons why a 6 year IVA should have been set up. Ask for a proposal to be put to your creditors outlining this situation and asking for your IVA to be treated as completed. If Aperture refuse to do this, put in a formal written complaint to them.
This is happening to other people.
guy argent says
Hello Sara.. I contacted Aperture with the above advice and within a week I have a reply. They emailed to me a copy of the original proposal that stated there is an additional year (from 5 to 6) added to my proposal.
It states “In order to improve my offer of repayment to Creditors, I have agreed to extend the term of the Arrangement by 12 months;” this is to 72 months. Now I do not have any recollection as to this inclusion and the copy of the proposal sent to me was blank and did not have my signature on it where I was asked to sign. I’m sure I never signed anything to that effect.
Aperture state they accept I can not remortgage but I must pay the extra 12 months. My original payment agreement concluded 6 months ago and they are asking for the same amount payments to be made from next month for the next 12 months. They said nothing about putting a proposal to my creditors. In total on a £30,000 debt i have paid back £7,200 in agreed payments and another £12,000 back in P.P.I.compensations. Do you still think that I still have a right of issuing a formal complaint against them ?
Thank you for your advice and time..
Guy Argent
guy argent says
Hello Sara.. I contacted Aperture with the above advice and within a week I have a reply. They emailed to me a copy of the original proposal that stated there is an additional year (from 5 to 6) added to my proposal.
It states “In order to improve my offer of repayment to Creditors, I have agreed to extend the term of the Arrangement by 12 months;” this is to 72 months. Now I do not have any recollection as to this inclusion and the copy of the proposal sent to me was blank and did not have my signature on it where I was asked to sign. I’m sure I never signed anything to that effect.
Aperture state they accept I can not remortgage but I must pay the extra 12 months. My original payment agreement concluded 6 months ago and they are asking for the same amount payments to be made from next month for the next 12 months. They said nothing about putting a proposal to my creditors. In total on a £30,000 debt i have paid back £7,200 in agreed payments and another £12,000 back in P.P.I.compensations. Do you still think that I still have a right of issuing a formal complaint against them ?
Thank you for your advice and time..
Guy Argent
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