Recently completed IVA

Transit_2

I recently completed an IVA with an early settlement. I would now like to start rebuilding my credit worthiness in the eyes of lenders. Personally I feel that anyone who had to go through an IVA is the least likely person to end up with debt problems again and they are in the great position of being completely debt free, but they dont seem to see it like that. I will need a mortgage in 12 Months and would apreciate advice on this, also are there any credit cards I can get? It seems to me that I could get one, spend on it and pay it off in full each month to start building a good record.

Jumanji_2

Unfortunately I can't help you, but I was wondering if you could help me.

My partner and I are looking at doing an IVA ourselves, and would appreciate hearing your views, thoughts and tips on them.

cozzie

I was recently offered a Capital One credit card and they guaranteed acceptance so long as you agreed to pay a deposit, (most I have heard of are £250) but when I got the letter back they said that I didn't have to. Look out for the banner ads - on yahoo I think - they say "we will say yes if you do"

Transit_2

Jumanji wrote:

Unfortunately I can't help you, but I was wondering if you could help me.

My partner and I are looking at doing an IVA ourselves, and would appreciate hearing your views, thoughts and tips on them.

The IVA is a good thing in general, it will certainly get creditors off your back as soon as you start proceedings. However I do not know the long term effects on your credit after the IVA is complete (5 years). The other option I would definately look at first is the consumer credit counceling service (https://www.cccs.co.uk) they will do the same thing for you and since its a charity wont line its pockets in the meantime. I didnt know about this option before I started the IVA. If you need an IVA company debt free direct seemed to be OK.

Debt_Free_Chick

An IVA ... allows you to repay some of the debt, but often not all. Essentially, you come to an agreement with your creditors. Usually, you need plenty of surplus income or a lump sum. Be careful if you are a property owner as any increase in the value of the house during the IVA can be taken away at the end i.e. you can be forced to remortage to release the equity and have to pay that amount to your creditors.

A Debt Management Plan is also an agreement with your creditors to pay off your debts by regular payments. Debt Management Plans can be more flexible than an IVA and you don't need to commit any equity in your property.

IVAs are expensive ... you need to use a registered Insolvency Practioner and the fees tend to be at least £5,000.

DMPs can be free - avoid those that charge.

Details on IVAs here

http://www.nationaldebtline.co.uk/england_factsheets/factsheet_26.php3/

And DMPs here

http://www.nationaldebtline.co.uk/england_factsheets/factsheet_29.php3

Free DMPs available from

https://www.nationaldebtline.co.uk
https://www.payplan.co.uk
https://www.cccs.co.uk

Debt Free Direct ... NNNNOOOOOO!!!! We've looked at them before on this Board and they got the giant thumbs down. They tend to push IVAs as they make fees from them, even when a DMP would do the job.

In order of preference, you should consider

DMP
IVA
Bankruptcy


But the final choice depends on individual circumstances, especially if you own a property.

HTH

Debt_Free_Chick

Transit wrote:

I recently completed an IVA with an early settlement. I would now like to start rebuilding my credit worthiness in the eyes of lenders. Personally I feel that anyone who had to go through an IVA is the least likely person to end up with debt problems again and they are in the great position of being completely debt free, but they dont seem to see it like that. I will need a mortgage in 12 Months and would apreciate advice on this, also are there any credit cards I can get? It seems to me that I could get one, spend on it and pay it off in full each month to start building a good record.

Whilst I understand what you say about those who go through IVAs the lenders don't see it that way. As far as they are concerned, you came to "an arrangement with your creditors". That arrangement meant that some of the debt was not repaid ... so they see you as someone who did not stick to a previous credit agreement and did not pay what they owed. Sorry to sound harsh, but this is how the lenders see it.

Try the Capital One card. It's for people with a poor credit record. You pay a deposit, typically £250 and you get a credit limit of, typically, £250. Use the card carefully for a small purchase every month and PAY THE BALANCE OFF IN FULL each month. This way, you build up a record of a "good payer".

HTH

dba12

Under the new "Enterprise Act" the Official Reciver can now draft IVA proposals for Debtor's.

Does anyone know anybody that has gone this route and if so was it sucessful?

A lot of people have been caught in the trap where the equity in the property was included in the IVA proposal.

I know of a couple of cases where the wording in the IVA proposal was not clear and resulted in the Debtor NOT having to include THEIR equity in the property.

With 1 year Bankruptcies what real benefit is their in an IVA?

Most Creditors would rather enter into a Debt Management program with a Debtor even for a reduced sum, rather than see Insolvency Practitioners getting rich.

DBA12