post IVA

[tammy]

Hi

I posted on anothr topic but cannot find it now. BAsically what it said was that your IVA details stay on your file for 6yrs in total meaning that its on your file for another 12months after completion. Does that mean you cannot get any kinds of loans, overdrafts, creditcards, mortgages etc after your iva has completed? If so how long for is this true?

[Oliver]

Your IVA will be registered on your Credit File for 6 years from the inception (the start) of your IVA. You will not be allowed to apply for credit (without the express permission of your IP) for the duration of your IVA. Once your IVA completes then you will be allowed to apply for credit again. This means that as IVA's run from 1 month - 60 months, you will be in a position to apply for credit whilst you still have your previous IVA registered on your Credit File. Whether or not you are accepted for the credit you apply for is a different matter though.

With regards to Mortgages, as this is secured lending, a mortgage can be applied for at any time regardless of whether someone is in an IVA, has completed an IVA but still has it registered on their Credit File or has completed an IVA and has no IVA notice on their Credit File.


Best Regards
Oliver

Thomas Charles Ltd: Experts in all things IVA
www.thomascharles.com

[MelanieGiles]

Clients of mine have recently got a credit card from their bank 3 months after the completion of the IVA, so the decision is up to individual lenders really.

Do be careful you don't end up with debt problems in the future though, and just keep for emergencies!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[jamesfalla]

Hi Tammy

The answers from Melanie and Oliver are quite right. You will certainly be able to borrow after your IVA has finished. However, I would caution against borrowing more money.

If you have struggled with repayments in the past, then it is all to easy to get into the trap of debt once again. Being in an IVA for 5 years should have tought you how to budget the money you do have and live without borrowing more.

Rememeber, once you have completed your IVA, not only will you be debt free, but you will also have 100% of your disposable income to keep for yourself. I suggest that you get into the habit of saving this money. Lets face it, you have not had it for the last 5 years so you are not going to miss it. If you use this to save for the things you want rather than paying for them on credit, the feeling will be so much sweeter.

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.

[MAY2006]

Hi
Can I add a question to Tammy's my IVA was a full and final settlement one. It was taken out May 05 and ended May 06, will this stay on my credit file until May 2011 but show as settled.
I have recently sent for my credit file and its still on showing as still 'live' I am in the middle of getting that updated.
I need to remortgage in April this year as the 2 year deal I had to do the IVA is due to finish.

[Oliver]

Hello May2006

You are quite right your Credit File will have your IVA registered until May 2011, but will show as settled once you have managed to get it updated.

This won't necessarily hinder any potential remortgage as Secured loans are underwritten very differently from unsecured loans. If you do find that you have a problem remortgaging there will be plenty of other lenders who will be more than happy to have your business.


Best Regards
Oliver

Thomas Charles Ltd: Experts in all things IVA
www.thomascharles.com

[jamesfalla]

Hi May

Oliver is quite right, your creditor file will have a record of your IVA existing for 6 years from the date it was put in place.

Given that the IVA is now settled you should not have much difficulty getting a mortgage. However, this will normally be through the adverse market as your credit file is not 100% clean. You are best advised to speak to a specialist broker who will be able to compare different lenders for you and get the best deal.

Because of your past problems, you will not be able to get the best mortgage deal on the high street. This means it will be worth considering if it is actually beneficial to change from your current lender at all. However, a good broker should be able to shop around for you so it is definitly worth the effort.

All the Best
James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.

[MAY2006]

Hi James, Oliver
Thank you for your responses.
I am not with high street lender at the moment but with GMAC. As we had to re-mortgage to get the IVA all the debt was still showing and my husband is self employed so we had to self cert the normal lenders would not have loaned.

We used Charcol last time on the advise of our IP who were really helpful. They have already contacted me regarding a review which is what prompted me to check my credit file as to be honest I never want to borrow again other than mortgage.

If I can ask one more question, a few of the creditors have updated our files to show 'settled' however they still show the full debt as delinquent, where as others have updated to show 'settled' but show the amount left after the 39p in the £ as delinquent.
Then we have my favourite company Max recovery who have bought 50% of my debt during the IVA who still show as defaulted for the full amount. I have written to them all but just wondered should it show settled and £0.00 as I do not owe them anything.