Probably a really easy question for most of you but I’m not sure….

Littledogbarked

Hi everyone.

I’m trying to find the answer to something and I was hoping one of you might be able to clarify for me. I’ve found similar questions in the forum but want to make sure I understand properly as I had a bit of a meltdown this week and am now considering an IVA…

I have defaults and a CCJ first recorded nearly 3 years ago. I was continuing to struggle along with everything myself because I thought if I can just get through the next 3 years everything will drop off my file (I know I will still have to continue paying the debts but renting etc will get easier).

But. The IVA advisor said that the defaulted accounts will continue to post a default every month so I’m not really 3 years away, I’m still 6…

So my question is:

Is a credit account removed 6 years from the first month it defaulted?

Or

Does the 6 years start from the most recent month it was recorded as defaulted?

So for example the account related to my CCJ shows as defaulted every month since March 2022. If by magic it showed as settled tomorrow would the account drop off my report in March 2028 or 2031?

Thanks in advance  

sourcrates

Its six years from the date of default, clearly shown on your credit file, after which it will be removed.

Grumpelstiltskin

Before you commit to an IVA are you 200% sure it is the correct thing to do?

You do realize the IVA 'advisor' is a salesperson who is only interested in what they can make out of you not whether the IVA is the best solution for you.

Go across to the IVA section of the Bankruptcy board and read some of the horror stories on there.

Littledogbarked

Thanks, that’s what I’m worried about. I wouldn’t entertain it if defaulted accounts drop off my file in 2028. But if it’s 6 years from today I feel like I’ve just wasted the last 3 years trying to manage everything myself…

Littledogbarked

Hi sourcrates - on my TransUnion file the defaults show every single month from Mar 2022 to Jan 2025, the IVA advisor said the Jan 2025 one would be a “fresh default” and so I’m no closer to them dropping off my file… 

EssexHebridean

Allowing that the “IVA advisor” you have been speaking with has already told you one thing that is patently not true, I’d personally be questioning whether I really wanted to continue to engage with them at all. 

Littledogbarked

Thank you EssexHebridian!!! That’s how I thought it worked so had been trying to follow that plan, had a bit of a meltdown this week so ended up on the phone for help and thought I’d got it wrong and wasted the last 3 years! Thank you so much, I’m glad I checked in with you all before making a decision. Love to you all xx

fatbelly

You do realise that the worst thing you can have on your file is insolvency? It stays for at least six years as many IVAs last longer than this

IVAs have their place as a form of bankruptcy for those with large debts who have an asset to protect. For most people they are the wrong choice

It sounds like you are looking at some app version of your credit report. Try a statutory report - they are free

Littledogbarked

Thanks Fatbelly. I got the full report online, not in app, IVA advisor just made me think I’d understood it wrong.

I did suspect I might be doing the wrong thing. I feel like even with a CCJ it looks better, to a prospective landlord for example, if it’s settled because it could be a mistake but an IVA tells everyone you had massive debt. 

Just really feeling a failure this week and wanted some guidance, sounds like IVA advisor was not the best person to turn too…

fatbelly

Try National Debtline

https://nationaldebtline.org/

At least they are free, impartial and don't have a product to sell

EssexHebridean

For the people an IVA was designed for, it’s absolutely the right choice and shouldn’t have any stigma attached to it. However as above, the issue is that because it carries fees with it, a lot of unscrupulous types have hit on selling IVA’s as a “fits all” solution - which it absolutely isn’t. It’s really important to be sure that you get the right advice, tailored to you, and from an impartial professional  advisor before entering into one.  An advisor who gets something as basic as the rules around defaults on credit files wrong is an absolute red flag!