If I get an IVA (alternative to bankruptcy) - can I still get credit in future?

Ryan.Maloney

I was going for bankrupcy but some have suggested an IVA

Will I still have to pay interest?

Will it mean I can one day get a mortgage (say - 15 years down the line when I am earning and have paid off all my debts)

In_Search_Of_Me

From vague recollection people gave lots of advice(contact payplan/ccs/cab/do SOA etc) I think if you can do that peopel will be more able to offer you sensible, informed advice..

sparkle84

I am confused I thought you had no income you would need a surplus of at least £250 a month for an IVA and yes it will effect your credit.

Ryan.Maloney

sparkle84 wrote:

I am confused I thought you had no income you would need a surplus of at least £250 a month for an IVA and yes it will effect your credit.

oh.. I have no money coming in.. so I can't do an IVA..

james32_uk

An IVA is a monthly payment you make for 5 years. This payment will be your income minus necessary living expenditure. Your total repayments must be at least 20% of total debt minimum and shoudl be more than 30%.

annam0787

An IVA will affect your credit rating for 6 years AFTER the credit is paid off. This is also the case with a DMP, which reduces your credit rating significantly.
I had the choice of DMP, IVA or bankruptcy. I decided on the DMP and it's been going well since I started it in October 2004 (with the CCCS) https://www.cccs.co.uk. They can advise you further if you give them a call or email them.
Anna

annam0787

Hi again,

p.s If you have no money coming in you could consider applying for bankruptcy. Sounds drastic I know but it was presented to me as an option as I had £21k worth of credit card and loan debt.

After 6 years of paying the debt off the slate is wiped clean. This means that if it takes 5 years to pay the debt off, your credit rating won't be 'good' again for 11 years. HOWEVER, you can add statements to your credit report (e.g through Experian) which creditors will see whenever you submit an application for something (e.g mortgage). I added statements to the effect that I have been on a DMP since Oct 2004 and have never missed a payment etc etc.

lynzpower

I think part of Ryans problem debts are his student loans, which AFAIK wont be written off via the bankrupcy route.

Ryan also implied that he could work, and have the tax breaks, as he is a student. Other suggestions could be suspending his course for the next academic year in order to work, or otherwise, but he hasnt responded to them. OP hasnt posted an SOA either, so its difficult to say whether bankrupcy would be an option, particularly as you have to pay to go bankrupt. I think a DMP might be an option, in order for OP to be able to pay a quid a month to creditors, until he is able to work.