www.iva.co.uk

Is it true that after 5 years of successfully completing your arrangement,credit agencies still got this record for additional 6 years?all in all 11 years?

Hi
No it is for six years. The five years of the iva and for one year after.
Ang

Hi inv

Some creditors decided to register the default at the end of the five years, so it then stays on file for a further six years. I am not quite sure of the legality of this, but Storm is more of an expert in this regard so I hope he/she will post a more thorough explanation for this.

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

Hi,to confirm its 6 years from the start of your IVA.
With regard to defaults being recorded i had a similar thing happen to me but many years ago but challenged the creditor[Alliance and Leicester]quoting the consumer credit act and that they had not informed me of the default notice,they changed my credit file straight away,afterall a default is a notice to recover the money and if your IVA has finished and the balance written off then I would consider that they have acted ilegally.
Interesting to have Storms thoughts.
Regards

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

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

Seems to me another case of lenders doing their best to make IVA's as unattractive an option as possible.

There's no doubt that the IVA itself should be off the record within 6 years.

The problems refer with the original debts. Normally these would be 'defaulted' with a 'default notice' issued before the IVA started. They would be listed as such on the credit record then also be off within six years.

However it seems the lenders are sneakily re-registering the default as close as possible to the IVA end point, causing it to remain on the record for a further 6 years after the IVA ends.

No doubt the creditors would argue that the debt remains in default up to the point it is written off by the successful completion of the IVA and they are entitled to record it as such. I would have thought they could also argue that the recording of the ongoing default does not necessarily require the issue of a default notice.

However as Andy has successfully challenged them on that basis it seems a very good place to start and I'm sure at very least they are on thin ice.

I do wonder though about the number of posts here from people asking this type of question, one implication being 'how soon will it be before I can start racking up the credit again ?!!!'. An IVA is a major insolvency procedure. Once you've been through it, do you really want to go and do it all over again ?

-Best

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'

Hi
Thats a good point from G4B,really once your IVA is finished then credit cards etc are the last thing that you want to get into.However there are other things that a reasonable credit record is needed for such as some media subscriptions[broadband,sky premium services],renting TVs and an average bank account.
Would be good to see someone challenge this if it actuall happens to them

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

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

Agreed, add mortgages on to that as well.

-Best

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'

You could also ask the question why a default notice should stay on your file if you pay it in full. I have a history of late payments and must now have a default somewhere as well,because I was refused a high street bank account, yet the only debts I have now are with family and friends (apart from up to date mortgage). Whatever the default notice is for there is no incentive to paying it as it will stay on my file regardless.