IVA might fail, bankruptcy?

gettingitsorted

have a look at your finance agreement Kev and see what clauses there are covering bankruptcy

MrKev83

its with a company called GMAC, my car finance....will see if I can find it n get reading

cheers guys

gettingitsorted

Your welcome Kev anything else just ask away

MrKev83

BR is always an option.

That would stay on your credit record for 6 years, and make it next to impossible to obtain any significant credit until that drops off (apart from perhaps a mortgage).

So if I opted for BR then after being discharged I'd be able to get a mortgage which is all I'm interested in gettin....

with 4 years left on my IVA I take it my credit rating is efficted for 10 years, if I went bank rupt it would only be six till it didnt appear on my file? is that after bein discharged or when declared bankrupt?

I'm just tryin to do the best to get a credit rating back

fermi

The BR falls off your Credit Reference Files 6 years to the day after the BR order is made (not discharged). Any debt related to the BR should also do the same if the records are correctly updated.

Going BR does not stop you getting a mortgage. One may be difficult to get for the first couple of years, and after that until the BR drops off you might not get the best rates or need a bigger deposit.

A mortgage is a secured loan, so is treated more sympathetically by lenders to BR's. Unsecured credit is the one that will be very difficult post both IVA or BR until your record is clean.

MrKev83

So my credit rating would recover quicker if I went BR then?

4 years left on IVA with possibility of having it extended.....does an IVA appear on your file all the time your in the IVA...i.e. 5 years term would mean from startin the IVA it would take 11 years to get off the file?

fermi

MrKev83 wrote: »

4 years left on IVA with possibility of having it extended.....does an IVA appear on your file all the time your in the IVA...i.e. 5 years term would mean from startin the IVA it would take 11 years to get off the file?

Not sure about that. I went straight for BR, as I didn't want to mess around for 5 years and just wanted to get things settled ASAP.

Not sure when the IVA drops off your CRF itself, but the debts should drop off 6 years after the date the IVA started.

See: http://www.debtquestions.co.uk/debt_forum/viewtopic.php?t=18900

All debts fall of the file 6 years after the DEFAULT date.