How Does an IVA Show up on your credit file?

MeestaDimples

I'm on an IVA and have to go through a credit check shortly as I am moving and this seems to be standard practise with letting agents these days. I just want to know how my IVA will show on my credit file, will it be a notice of defaults on all my creditors or something else?

Cheers!

fermi

It will show up the the "Court judgements, bankruptcies and voluntary arrangements" section of the CRF.
Plus any defaults on individual accounts will show as well.

A credit check for a letting agent can be a problem with an IVA on your CRF's. There have been several threads regarding this recently, so it would be worth searching through this forum.

immoral_angeluk

Completely agree with fermi. An IVA has pretty much the same effect on your credit rating as bankruptcy.. so expect some difficulties if you're going through letting agents that credit check.

Herbie21

We have recently been assisting a number of people who can no longer pay under their IVA's and are instead applying for bankruptcy.

What we are hearing more often , is that the company arranging....sorry selling !!!..... the IVA have informed the debtor that the IVA will not be recorded in the same way as bankruptcy.

This is NOT TRUE.

By searching the Insolvency Services own website you can search online for the names of all people who are bankrupt and all those who are under an IVA. However with bankruptcy you are normally discharged after one year and your name will be removed fom the site after a further 12 weeks.

As most IVA's can run for between 3 and 5 years your name is available to search against for a long time.

It is recorded with credit reference agencies for 6 years.

rayday2

Letting agents offer an insurance to landlords that helps them get money back if tennants don't pay. Obviously a lot of landlords like this but in order for insurance to pay out they have to have done a credit check and it turn up with no problems or the insurance is void.

But its pretty standard in lenting to have someone stand guarantor if that is possible for you. That person has the credit check done and in theory would pay the rent if you defaulted.

Be honest with the agent and tell them what they will find and they will not waste your money on credit checks etc.

Herbie21

Letting agents are representing the owners of the property and therefore they will of course carry out a credit check.

My advise is always to use instead private landlords. Many do not pay the fee for a search and instead take you on face value.

I would try this route first.

Also, there are some IVA;s that stipulate that you must seek the permission of the supervisor before entering into a new lease etc.

Herbie21

Another small point is that some owners that rent out their property either do not declare the fact to HM Revenue or their building societies. For this reason they steer away from letting agents and advertise privately.