IVA or DMP

Summer16

Hi am unfortunately having to have either an IVA or a DMP and really not sure which. Am really worried as it will affect my credit rating and am a single mum who has relied on credit far too long. need to change my ways. Is it possible to rebuild credit rating after an IVA or a DMP? any help or advise would be appreciated.

rizla_king

IVA is insolvency so worse than and default or arrangement under a DMP. Youll have to answer yes if ever asked if you were insolvent even when off your file. DMP the damage is not as bad but can last for longer on your actual report. Can rebuild after both but some lenders may still not consider you.

rajadazz

IVA is a formal arrangement to clear off your debts and I agree with Rizla, you have to separately declare that you have been on an IVA. This remains on your credit file for 6 years (same as a default) but a DMP is usually means you have a short term financial stress hence it is not perceived to be as bad as an IVA.

Tixy

Have you spoken to oe of the debt advice charities yet? If not then do that before you make a decision.

They'll help you consider how long it is likely to take you to pay off your debts through a DMP, how stable your income & finances are, how likely it is that your creditors will accept your IVA proposal etc.

Both will have a big impact on your credit file. But both are recoverable from in the longer term. I would focus on the other pros & cons of each for you situation rather than the impact on your credit file.