I've completed early - can I clear my credit rating?

emma32_2

Hi

I started my IVA in Sept 06 and it was due for completion in Sept 2011. My circumstance have changed dramatically over the past 2.5 years, primarily from a financial perspective, my salary increased by £10k, I always kept my IP informed of my circumstances and my IVA repayments increased accordingly, I also made additional payments whenever I found I'd had a particularly careful month, so I was always ahead of my original payment arrangments. However the biggest change in my life is now occuring as I find myself currently 8 months pregnant. As always I informed my IP of my changed circumstances as soon as I could and asked what my maternity leave (and reduced salary) would mean to my IVA repayments. Also at this time I very fortunately was offered a financial gift from my father on the basis that the sum is used to get back on my feet again and start financially afresh with the baby. I asked the IP if it would be possible to accept and use the gift to make an early payment offer and he advised me to put a proposal together which he would submit for voting by my creditors.

The lump sum offer made my total repayments to very roughly the sum that would have been repaid over the 5 year term, taking into account my increased and additional IVA payments, but still would have been approx £4000 less than my total original debt (just under £22k against an original debt of £26k). I stated all of my circumstances in my proposal and thankfully 100% of my creditors accepted the offer. Therefore I am in the process now of completing the paperwork and paying the lump sum offer. However my reason for doing all of this was so that I could get my life back on track with my new child and this includes cleaning my credit rating asap so i can look to get a mortgage in a year or two with my partner (we currently do not have a mortgage). However after reading the info on this website (I wish I'd have known about this in 2006!) it mentions that an IVA is on a persons history for 6 years, but that advice seems to be always based on an IVA that is repaid over 5 years. If an IVA is repaid early is it still on my history for 6 years or is there anything I can do to make sure my history is cleaned sooner? Like most with IVA's - I've worked so hard and gone without a lot for 2.5 years to clear my debts and (admittedly) been very lucky to get help; and all I want to do now is give my baby the best start in life possible and I believe that begins with making sure my financial situation is strong and that I learn from the mistakes of my youth so i am very very keen to do what I can to get us back on track. Does anyone know about the legailities of what happens after an IVA and can anyone give me any idea how long this is likely to take me? Thanks for your help and advice. Em

veersix

*bump* as nobody has replied and I'm not qualified to

silverback_999

HI, sorry i cant help you with your question but reading it has got me a bit miffed. My circumstances changed due to my wage and my monthly contribution went up twice, with the increased amounts and paying 50% of my overtime periodically by the time i complete the 5 years in February next year i'll have paid more than what i owed...all the interest, the original debts and the arrangement fees, dont get me wrong i owed it but i was told i couldn't end early, suppose it comes down to your arrangement company, mines obviously a.....cant swear on here.

peachyprice

Sorry to disappoint, but the IVA stays on your credit file for 6 years from inception, regardless of when it ends. Once you've paid it off it will only stay on the Insolvency Register for another 3 months.

Frankie66

I've been in same situationa as "Emma 32" I sold my house to clear off my IVA and am now in rented premises,but the money i pay could go to a mortgage with my husband...soo which banks WILL lend to people that have had IVAs ?? anyone