Hi, and thanks for taking my question.
I began an IVA almost 5 years ago and have been making payments each month. The IVA was modified a couple of times as my income changed, but I have never missed a payment.
What happens at the end of the 5 years?
Do my debts magically go away?
And how does this affect my credit history?
Have you discussed this with the IP/Insolvency Practitioner who administered your IVA? That is going to be a good starting point.
In many IVA’s you pay your monthly payments for the 5 years, and at the end of the 5 years, any remaining balances on the accounts are written off; meaning you are out of debt.
If you own property with equity, you can be required to release a portion of the equity in the last or 5th year of the IVA, to pay off the IVA. This equity release is usually done via a remortgage. However, if you cannot remortgage the property, the monthly payments can be extended for 6 or 12 months to make-up for this.
If you have no property, then yes at the end of the 5 years, the IVA is completed.
All accounts stay on your credit report for six (6) years. So one (1) year after your IVA has been finished, it should drop off your credit file.