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Hi. I am still trying to decide whether an IVA in the only option for me at the moment. When an informal debt repayment plan is agreed with an individual and the creditors it is not legally binding but during the repayment time you are blacklisted. When in an IVA it does say (from the info I have read) that obviously you should not and would not be able to get credit but does not state that you are blacklisted so in effect they are both the same aren't they? ALSO has anyone chosen the IVA route and regretted it, and if so why? Thanks.

Also, forgot yo add...in an informal agreement it states you are blacklisted but in an IVA not (although unable to obtain credit)so what one of these options does the most damage to you credit rating? Thanks

Hello Mel.d and Welcome to the Forum,

Whilst an Informal payment plan and an IVA have similarities they do also have distinct differences.

If you enter an IVA, this will appear on your credit file for 6 years from its commencement. Whereas with an Informal payment plan it may not necessarily show on your credit file.

If you missed several of your contractual monthly payments this will then show on your credit report as a default.

How much is your estimated debt amount? Have you sought any advice from Debt solution companies?

Hope this information is of use

Regards. IVA Experts

Hi mel

There is no such thing as being "blacklisted". Entries will merely be made on your credit file to reflect the fact that you are either in an IVA or subject to a Debt Management Programme. This is to enable future lenders to assess whether you represent a good credit risk or not.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Mel.d
Many people have entered into an IVA and regretted it,for one simple reason,they have agreed to a monthly figure that they simply cannot afford to pay for five years.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

Hi Mel
Also with a dmp it can take many years to pay off whereas in an iva you know the length of time and then any other is written off ,at least you know when it will end. If you post more of income and how much you owe, if you have assets house etc then more advice can be given.

Ang

Sorry Mel just saw the other posts.

Ang

Mel.d

Really if you are comparing IVA or DMP, you shouldn't be getting hung up about your credit rating. The first thing to think about is resolving the problem. An IVA will get the debt settled in 5 years. After that no more debt. A Debt Management Plan will take as long as it takes to pay off 100% of the debt.

Unless you have a property you are unable to release equity from, I would say that an IVA will be financially better for you 100% of the time.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk