Does an IVA stay on your credit score for life?

lisafurguson

We are considering going into an IVA as credit card bills and overdraft is getting the better of us and over the last year we seem to pay pay pay but have the same amount outstanding. The one thing that worries me is that the IVA shows on your score for life?
I have read on pages that the IVA does show up for a number of years but is there a fixed term? For example if I wanted a loan in 7 years time is this still going to show up and mess things up for us?
Any advice would be most appreciated. Also if anybody has an alternative to an IVA I would be keen on knowing about that as well as we have a car on HP which is worth around 10k (it has no equity in it) but I would like to keep up the payments on this and not have it taken back and Ive read that with an IVA they wont let you keep a HP vehicle contract running if the car is worth more than 5k?

Thanks in advance
Lisa

fermi

The IVA and debts that go into should usually show on your credit file for no more than 6 years from the start of the IVA.

However, if on any loan application you are asked whether you have ever been declared insolvent/entered into an IVA etc, then you would have to answer "yes", even if gone from your credit report.

lisafurguson

Thanks for the quick response. So I guess if companies are going to ask that question the likely-hood is it could well affect you for a long long time.

Foxy-Stoat_3

It will effect you for around 1 year after your IVA finishes, although after 5 years of living/spending within your means and strict budgeting the last thing you will want to do is rush out and get a loan !!!!! Maybe a lesson for our goverment !!LOL

Seriously, if your struggling and depressed now because your in too much debt, then not being able to take out a loan straight after your IVA will be a blessing!

National_Debtline

Hi there

Regarding the second part of your query re: HP car, I'm not aware of any hard and fast rule preventing you maintaining HP payments on a car over a specific value in an IVA. Obviously, individual insolvency practitioners (IPs) will have their own view on how much is "too much" as this could affect whther creditors vote for or against a proposal.

Ultimately if the IP says your HP payments won't fit into the IVA, you can walk away before agreeing to it and either pursue other options or look for an IP who is more accommodating. It will all come down to whether creditors accept the proposal, so the IP won't put forward any old set of figures.

Dennis @NDL

Anondebtadvisor

Creditors do accept HP payments but prefer them to be below £250 per month, if it is a higher figure they can ask for you extend the IVA.

The IP can propose whatever you ask them to but ultimatley it is one for the creditors to make.

Also some HP companies are terminating the agreements when they find out about the IVA - Volkwagon Finance are one of the ones who usually terminate