www.iva.co.uk

Greetings All

I am in the process of looking at an IVA to help and hopefully solve my debt problems.
Can anyone tell me how long it is on your credit file if you obtain an IVA - as in the future I would like to buy a house with my partner ( few years down the line ) she will have a good credit score but how much will the IVA effect mine ( and for how long )?

The IVA will show on your credit file for a period of 6 years from the start of your IVA regardless of when it completes (usually one year).

Being in an IVA would not necessarily preclude you from taking out a mortgage (as the underwriting for a secured loan is completely different from an unsecured loan), however you will need to seek the permission of your IP, have the deposit funded from someone other than yourself and must not be in a worse off financial position (with regards to your ability to meet your agreed monthly payment) because of the mortgage cost.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Many Thanks for the info, I spoke to someone at MBNA last week and they gave me duff info as they tried to set up a debt management scheme with me and said that it would be better than an iva due to an iva stays on your credit file for a lot more than six years.

Nope, an IVA stays on record for 6 years. What MBNA told you is poop.

Another question if someone could help please - I am currently paying all my creditors the minimum amount each month on credit cards etc. so I am not in arrears or missed any payments ( not defaulted )can I still apply for an IVA being in this state ? I have basically been getting the money together to meet the minimum payments with help from friends / family and also 'robbing peter to pay paul'.

another concern is if I don't get accepted for the IVA my credit rating will be rubbished for nothing and I'm back to square one !

The answer to the first question is probably yes, you need to do a Income and Expenditure review taking into account all your incomings and reasonable expenditures - but exclude your debt repayments. Then, minus the expenditure from the income and whats left is your dispoable income. Post this figure along with a list of what you owe to who, and someone here will advise you if an IVA is suitable.

Yes, if a IVA proposal fails you will be back to square one and your credit rating will most probably be damaged by that stage. But if you have a genuine problem, your credit rating will be damaged soon enough anyway (with arrears, defaults etc). Taking on more credit is rarely the right solution, so it isnt the end of the world to lose your credit worthiness.

Thanks for the information.

Is it still the case that MBNA are not playing ball when it comes to an IVA descission ?

Hi there

I do not think that it is sensible for you to be borrowing money from friends/family, just to make onogoing payments to your creditors. This is just effectively causing you to increase your overall indebtedness.

You basically have three options - bankruptcy proceedings, IVA or Debt Management Programme. Take as much advice as you can find about each procedure before deciding on a way forward. An IVA may be appropriate for you, but they do not suit every person so take careful consideration before commiting to any set route.

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

From my experience MBNA have been fine, they accepted my proposal and were not one of the difficult creditors. But every case is unique and will be looked at on its own merits.