www.iva.co.uk

HI I'm currently filling in the pack to apply to start the procedure to apply for an IVA , I'm a little confused they have told me after 5 yrs and 3 months i will have to attempt a remortgage i not 12 additional payments if 12 additional payments are to be made this takes you over the 6 year debt free quote , in my application it says an iva will last for 6 six years it is up to you to update the credit reference agencies after this time , if an iva runs longer than six years it will remain on your credit file for longer than 6 years (iva runs to 6 years 3 months) so in fact the iva remains on your credit records till 12 years has past ??????

Hi and welcome,

No, your IVA will remain upon your file for six years or until it has finished then it will drop off.

It is up to you to update your credit file at the end of the IVA.

As regards the remortgage, you are highly unlikely to be able to get one so your IVA will run for an extra 12 months taking it to six years, not six years 3 months.

My Iva was a 6 year one and mine had a very similar clause. It basically meant that after 5 yrs and 3 months you have to get a few valuations of your property and send them in to Iva company. Depending on how much equity there is in your property they may ask you to try to remortgage and release some of the equity into the Iva agreement. However, you probably wont be able to obtain a remortgage due to your credit file being shot so they ask you to pay an extra year into your Iva. Your credit file should be clear 6 yrs from the start date of your Iva not the end of it. My Iva ended march this year after 6 yrs and was clear the following month. I had less than 5k equity and they deemed it too little to remortgage so my Iva ended on time

Just to clarify -- an IVA drops off the credit files after 6 years, assuming it has completed by then. If it lasts longer than 6 years it will drop off a few months after completion.

The usual procedure is, on formal completion ( which could be up to 6 months after the final payment ) the IP informs the Insolvency Service who will remove you from the Insolvency Register within 3 months. The Insolvency Service will report completion to the three credit reference agencies who will mark it as complete, or remove it if it has passed the 6th anniversary.

I applied for an IVA over 5 years + 12 month extension/ equity release but at the creditors mtg to approve IVA mine was extended by a further 12 months = 6 year + 12 month extension or equity release. I agreed as I did not want to go bankrupt to protect my house and I have now done 67 months and I have to say it was still the right decision taking out the IVA and life has got easier as I have learnt to budget better.

The trend seems to be moving towards a secured loan or a remortgage so you might not be able to just do the 12 month extension.

If you are still unsure you should speak to another IP and get everything explained properly to you. Too many IP firms get you to sign without explaining the implications.

I agree with Michael - your Nominated IP should be able to explain this to you beforehand and answer these queries for you, without you having to resort to a forum.