IVA in the military

Js01

Hi,

I’m considering evetering an IVA as I am struggling o get out of it.

There are a few things I would like some help with if anyone can offer any advice.

As a serving member of the UK armed forces, am I under any obligation to inform them I am entering an IVA? I don’t want to go directly to HR and highlight the issue if it is not necessary.

When the IVA is finished, how long will it take until I can apply for a mortgage with a chance of being accepted? I have read and heard different opinions on this. As some of my debts are currently with debt collection agencies I assume the damage is already done and an IVA won’t make it much worse?

Any help with any of the above would be appreciated

sourcrates

Hi,


Your not under any obligation to inform anyone of your IVA status.


However, it may be in your interest to do so under certain circumstances, some good info here for you :


https://www.ivaadviceforum.co.uk/News%20articles/canarmedforcespersonnelembarkuponaniva.php


IVA `s can last up to 6 years, and you are correct, the damage really is already done, usually by the time its ended, your credit file has healed itself, as the negative information either, will of gone, or will do so soon after.

National_Debtline

Hi Js01 and welcome to MSE,


If you are unsure if an IVA would be a breach of your employment, then try and check your contract or a handbook to be sure. Remember that if you do decide to do an IVA it will be recorded on the Individual Insolvency Register, so it is better to check your obligation to declare.


An IVA is a form of insolvency and whilst your credit file would already have some damage through things like defaults, an IVA would be more damaging once added and can potentially have a more long term affect as well. If you apply for credit in the future and it asks you if you have 'ever' been insolvent then this would be something you need to declare (even if it no longer shows on your history). This is what can affect you getting credit in the long term. However, in the interest of being balanced, you also cannot really rebuild your credit file until you are debt free, so if negotiations would take a long time, insolvency may be the better option.

You could post your SOA on here for more options, or call one of the free debt charities.


Laura
@natdebtline

Js01

Thanks for the reply Laura. The IVA/trust deed is something I’m looking to now go ahead with.

I am currently a director of a company. I have a third of the company. We don’t take massive profit and the dividends isn’t huge.

I have been informed if I enter the agreement I have to resign. Do you have any further info on this? TIA

Js01

Just to confirm it is a trust deed I am involved in as i live in Scotland

DorisTrousers

My understanding is that there is no bar to being a company director in a PTD per se, but you should disclose it to any other directors.