Iva

rwatts

Hi,
Just wondered if anyone knows much about IVA's.
My OH is in the process of setting up an IVA and I would really like to hear from someone who has or is currently in one or can offer me any advice.
Would really like to know the credit rating effect, obviously all the accounts will default at the time, but does it clear from your file after so many years.

Sorry for all the questions, thank you to anyone who can help me.

rwatts

james32_uk

Any account with his name on it will be closed and debt repayed using his/your surplus income. It's imperative he/you both open a new account with a non-connecting bank which you can use when all your other accounts get closed down. He/you are not allowed any credit during the (normally) 5 year repayment period. After the 5 years the defaults will show on credit record for 1 further year after which nothing will be visible on your credit file. However, credit companies will be extremely suspicious of the 6 year time gap where you took out no credit so it will still be difficult to build up a credit history after this time.

sparkle84

[ After the 5 years the defaults will show on credit record for 1 further year after which nothing will be visible on your credit file. However, credit companies will be extremely suspicious of the 6 year time gap where you took out no credit so it will still be difficult to build up a credit history after this time.[/QUOTE]

I don't agree with this at all it you will be debt free after five years credit cards and banks will be trying to throw money at you - however you will have learnt a valuable lesson won't you. Computers aren't suspicious!!

There are a couple of people on here who have been through an IVA donnalove being one who are very helpful with regards to IVAs

donnalove

hi rwatts

during the iva as has been said your oh won't be able to get any credit.Unless you are financely linked it should it would not impact on your credit rating, the iva will drop off after 6 years from commencement, as will all defaults.so in 6 years oh should have a clean rating.

oh's bank account will not be closed unless he has an overdraft or credit card with that bank, if oh has neither then his bank account will be ok.

the iva will run smoothly as long as oh sticks to the proposal, i treated mine like my mortgage a top priority.Although i found the first year difficult after that it became easier.We finished ours in oct 2005 6 months early with a remortgage.

oh payments will be based on his surplus income after his/her contributions have been taken into account for household expenditure any surplus you have left will not be taken into account as it's your oh that is going into the iva.


donnalove
xx

james32_uk

I assumed you were financially linked. It's better for both of you (esp you) if you are not so if you can do anything to close joint bank accounts etc then do it now. Your husband must not open any new accounts to transfer joint balances as this is not allowed just before you apply for an IVA.

fatbelly

Just noticed that I responded to one of your earlier threads as below. Did you read the factsheets?

Hi
Think you need to have a look through some National Debtline factsheets. The IVA one is here.

But first you need to ask yourself why a debt management plan isn't suitable. Factsheet here.

And if it isn't (massive debt, debt-free date sometime after 2012?) then why is bankruptcy unsuitable (homeowner? own business?). Factsheet here

There are a lot of firms pushing IVAs strongly now because of the fees attached. ND say 'around 4k' but 6k to 8k seem to be quoted routinely. Many people are getting pushed into them because they are not aware of the options available and the pros and cons of each option.

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