IVA Advice

Cherrypi

Hi all - new to the forum so be nice

Right my situation - aplied and entered an IVA about 2 and a half years ago now - just had through my 2 year anniversary review paperwork.

Thankfully my situation has improved somewhat since then and I now realise the IVA maybe wasn't the best choice for me. You live and learn as they say.

Anyway I am now hoping to have paid off the full amount of the IVA in 12/18 months.

What I need to know is

1) By paying off the full amount I am hoping that this will show more positively in my favour when I stat to rebuild my credit history - is this correct or am I penalising myself by trying to pay off all my debt

2) Do I need to do anything to have the IVA removed from my history or does this have to stay for the next 3 years or so (full length of IVA term and 1 extra year)

3) I plan to apply for a cc after completing the IVA, which I know will be high interest and will be paid off every month - is this the best way to rebuild my credit score?

4) Does the IVA show internationally? i.e if I apply for a bank account in the USA?

5) Finally the supervisors fees of the IVA are based on a yearly fee - if I pay off 2 years early will the fees for the remaining years still have to be paid?

Any advice would be really appreciated! I just wish I'd found this forum 3 years ago

Claire

Cherrypi

Ok if no one can help me on these can someone recommend a place to find the answers?

Thanks

Claire

purpledelly

I think maybe your post got buried so bumping it up is good.
I'm on a DMP but I recently investigated IVAs. I'm sure someone more knowledgeable will be along but I can answer some:
1) By paying off the full amount I am hoping that this will show more positively in my favour when I stat to rebuild my credit history - is this correct or am I penalising myself by trying to pay off all my debt I honestly don't think it will make any differnce to your credit history - credit files aren't that detailed. The only thing I wonder is - if you have reduced the total you are paying the creditors (as IVAs usually do) and then pay them early, they might want more money from you - although I think the terms of the IVA won't allow them to pursue it. Worth checking with whoever manages your IVA

2) Do I need to do anything to have the IVA removed from my history or does this have to stay for the next 3 years or so (full length of IVA term and 1 extra year) It will stay on your record for 6 years but you should get a copy of your credit file a few months after completing the IVA and check that all creditors have filed on it that you've now completely settled the debt. But a record of the IVA remains for a while.

3) I plan to apply for a cc after completing the IVA, which I know will be high interest and will be paid off every month - is this the best way to rebuild my credit score? I don't think I'd ever want to look at a credit card again after I've finished paying my debts! Can't really answer it though - others will know.

4) Does the IVA show internationally? i.e if I apply for a bank account in the USA? I don't know that....

5) Finally the supervisors fees of the IVA are based on a yearly fee - if I pay off 2 years early will the fees for the remaining years still have to be paid? I guess only the supervisors of the IVA can answer that - it's probably an individual thing - however as they won't be managing the IVA once you've paid it off I can't see how they can charge you - depends if the charges are fixed or based on simply managing the IVA.


Don't know if that helps but hope it might a bit!

taplady

There is a site called www.debtquestions.co.uk which I have found to be very useful as they have a forum specifically on IVAs. Hope this helps!;)

Cherrypi

Thanks guys - will check out the info offered

MIVAA

Hi Cherrypi,

Good to hear that your circumstances have improved well enough for you to complete your IVA early.

In answer to your questions,

1) Unfortunately paying off your IVA early will not speed up the time the IVA remains on your credit file. It will be there for 6 years, starting from the day your IVA was accepted by your creditors. You should try to resist feeling that you are being hard done to, just because you are able to repay your debts in full. Before you began your IVA I'm sure you would have preferred to have been able to keep up your original repayments, but were just unable to afford them. If the IVA has enabled you to continue your life without the burden of your original debt repayments, and enabled you to repay what you could afford, then I believe it has been successful, even if you do not benefit from an eventual debt write-off.

2) You will be given a 'certificate of completion' by your I.P. It is in your interests for you to send a copy of your 'Certificate of Completion' to all the Credit Reference Agencies, to enable them to update their records and show that your Individual Voluntary Arrangement (IVA) has been completed successfully, and the IVA has finished. This in turn will mean you are able to begin the process of rebuilding your credit score.

Useful reading on Life after an IVA finishes from My-IVA-Adviser.co.uk

3) Using a credit card is a viable method to improve your credit worthiness. Make sure you repay the total balance each month without incurring interest, as this will act as a bonus to your score. Try to resist living off any credit you may receive. You've been there once, and what would you do if your circumstances were to take a change for the worse again.

4) As far as I'm aware you should have no difficulty attaining credit internationally, though bear in mind that your original creditors will have internal records of your previous history. Check for associations between your potential new creditor and your old ones.

5) If you are able to complete your IVA early, with a dividend to creditors of 100p in the pound, then your I.P. will not be able to charge your creditors for supervising your IVA once it has finished. You need to discuss your improved circumstances with your I.P. as there may be a clause in your IVA proposal that means you will become liable to pay statutory interest on the original debt, if you repay the IVA early and in full.

I hope this information helps, and good luck in the future.

Cherrypi

Hugely helpful

Thanks for a top response!

I think I had slightly miscalculated - what I should be able to do at the end of year 3 is pay off the agreed amount and fees which was a dividend of 70p in the £1 to my creditors so I do need to find out how I stand on that score, as in whether I'll actualy have to continue into year four and repay 100p (i.e the full amount).

I don't feel hard done by with it staying on my file for the full 6 years, frustrated maybe but thats my fault for getting into the mess in the first place. No way will I go down this road again and intend on paying off any future credit in full

Thanks again guys

Claire

rog2

Hi cherrypi - I've only just seen your post, and whilst you have received some EXCELLENT advice, can I suggest that you have a word with one of the Debt Counselling Charities, such as CCCS or National Debtline, who will be able to guide you through the mechanics of paying off your IVA, including what your IVA Company/Insolvency Practitioner can and can not charge.
Their advice is free and it might just save you from being taken advantage of.