Debt/First Mortgage

jojojodie20

Hi everyone!

Hoping someone out there will be able to help me with a query I have regarding debt and mortgages.

My Husband was in a lot of debt back in 2011, and as a result had to enter a debt relief order/IVA type thing. All his debt was wiped, but it's showing on his credit report still and he still gets statements from certain accounts.

I myself am in around £20,000 worth of debt from a loan and credit card combined. We're in the process of paying this off (currently down to about £17,000 thanks to me stalking the forums for years!) and then looking to save to buy our first house.

My question is, when will the IVA/DRO type thing be removed from his credit report? We want to wait till we are in the best position possible to buy a house, which we understand will mean waiting a few more years/paying debts off/saving up loads.

TIA

Edit: please ignore signature, I forgot I'd done this years ago so it's highly inaccurate!

MrsTinks

The IVA or DRO will remain on his credit file for 6 years from the date they started. If his creditors are still sending statements and it's a DR where his debts were wiped then you need to make sure they were all included in his arrangement.

There is a difference between a DRO and an IVA so it would be helpful if you knew which it is? just in case...

sourcrates

If he entered an IVA or a DRO, in 2011, then the associated defaults won't be off his file until next year.

Creditors are obliged to still send statements, but it might be wise to check which debts these statements refer to.

As Mrs Tinks says, you also need to clarify if it was a debt relief order or an individual voluntery arrangement.

National_Debtline

A Debt Relief Order (DRO) is where an individual has less than £50per month to pay to their debts and enter into a 12month moratorium (stay of proceedings) where no debts can chase for money owed and, if after 12months, the situation is unchanged, the debts are written off and you are no longer liable. It is a bit like going bankrupt.

However, an Individual Voluntary Arrangement (IVA) is normally a 5-6 year repayment plan that must complete successfully for the remaining debt to be written off.


Both are insolvency options and may need to be declared (if asked) even once they are off the credit file. However, as long as they completed successfully, no creditor included in either option should be writing to him about the debts. They may be writing because they were not included, or because it didn't complete properly or as an harassment tactic and if the later is true your husband can complain.


Laura
@natdebtline