Is it really 11yrs before I can get any credit again if I do any kinda payment plan??

Mics_chick

I'm in the early stages of sorting my finances so I don't know if I qualify for an IVA or any other sort of payment plan but I just wondered if it takes 5yrs to pay off a plan and then 6yrs to clear my credit history can I not get any sort of credit until then???
...or doesn't it quite work that way?

I'm not planning on running up any debts again - I just mean if I want a mortgage (or some other valid reason for affordable credit) ???

Ames

Defaults last on your credit file for six years from when they're placed, not when they're paid. Bankruptcy also lasts six years, although you always have to declare it if asked. I assume it's the same for an IVA, it is for a DMP.

So, say you defaulted next months payment and start a debt management plan, and then in August they place a default on your credit record. That would fall off after six years, so in August 2016, regardless of anything else (except Bankruptcy). That's when you'd be able to start rebuilding it.

HTH.

doelani

6 years from date IVA agreed or date Bankruptsy agreed. If you go either of these rountes you need to make sure all defulats are date on or before the above dates then they will drop off after the 6 years .

NOt sure about a DMP

DarkConvict

Bankruptcy is 6 years from the date of the court hearing, if ever mentioned "were" not "are" you bankrupt you must answer yes.
It is recorded on your credit file for the 6 years, put in the London Gazette (online paper) and is accessible forever, you are put on the insolvency register for 12 months, you are bankcrupt for 12 months and you make payments on to the official receiver of a set amount (IPA/IPO) towards your debts for atleast 3 years.

IVA is 6 years from the agreed date, still a form of insolvency. Must make a set payment for set period of time. Once completed, remaining debts are wiped clean. If you fail to make all agreed payments the IVA will fail, you loose start up costs and are back to sqaure one.

DMP, this is not a legal agreement but an informal one. Basically you make payments on a prorata basis, and with some management hope to get interest/charges frozen and all debts paid off. The time it takes depends on your surplus income, the amount of debt and how well your creditors play ball. As such the affect of a debt is usually a stack of defaults, but since it is informal the creditor can if they wish attempt court action like CCJs, COs, apply for bankcrupcty etc. Although these are likely to fail if the DMP is organised by a charity as the judge will see you are doing what you can do.
The lasting affects of a DMP varies, it is 6 years from the date of a default or successful court action against you so it can be a bit spread, but you are likely to receive late payment markers for along time although these only last 3 years.

Mics_chick

Thanks for all the help and info guys :A