Considering an IVA

[snowmonkey]

I am considering whether to do an IVA or a DMP and I am torn between doing the right thing and paying back all my creditors everything I owe them ( which will take about 15 years ) given the size of my debts. Or doing an IVA and being all done in 5 years. I have consulted with CCCS who have said that an IVA will stay on my credit file for 6 years after it ends, but 3 other companies say it is 6 years from when it starts. Can anyone clarify ? Also after the IVA has ended and gone from my credit file (say for example in 6 years time) am I obliged to inform a lender that I ever had an IVA if Apply for credit in the future such as a mortgage?

In total I have debts unsecured of £80k but available monthly income of around £450 to pay against this, would this be likely to be accepted or are my debts simply too high ?

[Ren]

Thanks for asking this question as I too have the same dilema as you right now but I have read that it stays listed on your credit file for a further 6 years after the IVA has ended. Not sure I could pay off my debts on a DMP within a reasonable time given the amount of debt we have and our income as my husbands pay is quite low and I only work 1 night shift a week because of having 5 children. Then again if it will be 12 years to get a clean credit record on an IVA then maybe a DMP won't be such a big deal.

[Skippy]

CCCS are wrong.

An IVA stays on your credit file for 6 years from the date of the creditors' meeting. Any defaults stay on for 6 years from the date that they are registered.

This has been mentioned a couple of times in the past, but if it was a major problem I'm sure we would have had many more posts about it.

If you are specifically asked if you have ever been in an IVA then you would need to answer yes, but if not then you wouldn't need to declare it.

Please don't let something that you don't even know will happen put you off an IVA, as this is a very good debt solution.

[MelanieGiles]

I agree - a few number of isolated incidents have resulted in creditors mistaking the six year ruling to be effective after the IVA has concluded, but the industry believe this in incorrect and are taking it up with the credit referencing agencies so I believe.

[kallis3]

Just to clarify Skippy's post as well - although defaults stay on your record for 6 years from the date they are registerd - some creditors put them on AFTER the IVA has been approved, which they cannot do.

Once your IVA has been completed, it is always best to check your record with the three agencies - Experian, Equifax and Call Credit. If there are any defaults registered after the IVA, you can write to the creditors and tell them to remove them.