IVA Marker- but I cancelled it before it went live...

laurence9696

I applied for an IVA as I was struggling to find a debt consolidation loan. There is an IVA meeting due to take place, however, I have cancelled it. As I managed to find a lender that would allow me to consolidate my debt and make it more affordable for me via a loan.

Whilst the iVA would it restrictions on my promotion opportunities at work, hinder my credit report and mean all my credit account would be closed and also mean I would need to release equity in my property at the end, in theory keeping me in debt- long term.

Barclaycard have closed my account already, due to an IVA marker on my file. The IVA has never been live, will this marker be removed, or will it be on my file now for the next 6 years, even though I never entered the IVA?

mwarby

Is the marker on your credit file or Barclays systems?

I do t really see a way back if latter, as an IVA proposal is a long way if saying 'im insolvent, i can't afford to repay my debts, here's the best I can offer as an alternative to bankruptcy'

mwarby

In fact if my IVA is anything to go by they may we'll have sold the debt on (I got letter from PDO holdco a few days before meeting), in that case they will have probably lost a fair bit of money on you (new owner of debt will do well though)

laurence9696

I think Barclaycard have received a proposal letter. That is what they are basing all the information off. But obviously, my plan is actually to repay all creditors off via a debt consolidation loan.

Creditors get all their money, I am not affected with promotion restrictions, and the IVA company will want me to release equity in my property after 5 years. Meaning, I am actually repaying the full amount + a bit more at the end of the IVA term. Although 'debt free' im gonna be 10k behind on my mortgage.

mwarby

In most IVAs the creditor (barclaycard in this case) get much less than the full amount. While yours may have proposed 100% repayment it may well have been sold in a bundle of loans which also had proposed insolvency

I suspect regardless of the outcome Barclaycard may not want to do business with you for a while, because the proposal is essentially an admission of insolvency, which won't make you a good risk

sourcrates

laurence9696 wrote: »

I think Barclaycard have received a proposal letter. That is what they are basing all the information off. But obviously, my plan is actually to repay all creditors off via a debt consolidation loan.
.

Have you addressed the reasons that saw you accrue £19,000 of debt in the first place ?
Consolidation loans can be a double edged sword, as the temptation to return to your old ways is ever present, many people have gone down this road, some more than once, then reopened the consolidated lines of credit and hey presto, rinse and repeat again.

You may have been better off with the IVA.