www.iva.co.uk

I successfully completed my IVA in 2010 and it no longer showing on my credit reports.

I was looking to,open an account with Halifax (where I already have a mortgage) however the terms ask that I confirm that I have never been bankrupt or insolvent or entered into any arrangements with creditors, or been the subject of any decree or judgment for debt outstanding."

I'm right in saying that an IVA is classed as an arrangement and that I cannot legally apply for this account? And, that being the case, will this be the same for any other bank I apply to?

Barclays will open an account for you. You may only get the basic account with no overdraft but visa and online banking facilities. I opened with them last year while still in my IVA and had no problems. They didn't ask about insolvency, but I gave them the IVA information as I knew they would carry out a credit check and find out anyway. They still had no issues with offering me an account with them.

They get you on two fronts: it is an arrangement and you have been insolvent.

Halifax already know that you have had an IVA so to lie now would see your application rejected. Saying yes, will not mean that you will be refused automatically. You are free to apply, you are just unable to confirm that statement.

In many cases this will be rejected by a computerised selection system, but can often be overturned by the intervention of a human being.

I'm beginning to wonder whether it might have been easier to go bankrupt if the IVA now carries the same long-term stigma? I'd have been debt-free by now and with my level of debt bankruptcy was very nearly the route I took.

That's helpful Foggy,, thank you.

I understand I can't give a false answer, I'll give them a call tomorrow to see if they can do anything.

This is a contentious issue. In my mind, once it's off the credit file you have a clean slate and do not have to declare it.

In other words, if the question asks have you ever been insolvent means "in the last 6 years" whether it says it or not.

Otherwise, some poor soul who lost his job aged 20 and entered an IVA is condemned to a life of no mortgages, car loans, credit cards, jobs in finance etc...

Absurd in my mind... However, not everyone agrees with me.

I don't think it's a question of not agreeing with the principle, Hubert. After all, you do not have to declare a spent criminal conviction, so why an IVA ?

However, the word "ever" does not mean "6 years" !

Hi

Each person must deal with this question how they see fit

The correct answer is that you must declare it, however it may blight you for many, many years to come......unfairly in my opinion

Regards

I agree it's unfair to have this hanging over us for eternity!

I phoned Halifax direct today and explained that I'd been in an IVA and although it's been cleared from credit files, the online question about ever having an IVA essentially stopped my online application.

Was advised that this was not a question that would be asked via the telephone application process (bizarrely but thankfully!) and that I could apply via the telephone.

After a long call, my new reward account has been approved woohoo. I'm so pleased that there is life after an IVA. Mike from the. Zebra Money Centre secured me a 5 year fixed mortgage at 3.39% (for which I am also very grateful) and now a £5 per month reward current account.

What brilliant news for you and hopefully good advice for others especially the telephone application. All the best for you future

Hi

Good post, just shows the value of sharing experiences

Regards

Excellent news, Well done.

And great to hear about the mortgage deal through Zebra,