IVA-how long do they remain on credit file once paid off?

ric_flair

Hi, I thinking about entering an IVA to clear some of my debts. After i've done that, its likely I'll sell my house and just pay off the rest (I want to move it anyway, so its not a case of selling it for the sake of paying off debts).

What I want to know is, does the "IVA" still appear on my credit file if I pay off the account (s)? Or will it just show the account as settled, with no other information?

How exacly does an IVA appear on credit files? For example, I have a default on an account, and its marked with a D on credit history. Or does it go under a seperate heading (like CCJ's do I think?)

Thanks, great forum

fermi

The IVA itself goes under the "Public Information/Records" section. That's the same section that CCJ's etc go in. That remains on your credit reference files for 6 years from the start date of the IVA agreement.

Accounts that are included in the IVA can be defaulted by the lender. If they default the account then this must be dated as NO LATER than the date of the IVA agreement. Defaults and the account information associated with them are removed from your credit reference files 6 years from the recorded default date (in other words a maximum of 6 years from the IVA agreement being signed).

The lender must also mark the accounts as being "settled/satisfied" or "partially settled/satisfied", and the date recorded for the settlement must be no later than the finishing date of the IVA.

EDIT: If you are considering an IVA it's worth reading the factsheet that this site has on them.

Link: IVA Guide

Also it might be worth contacting CCCS to see if they think an IVA is suitable. If it is, they can help arrange one so that you can be more confident that you or the creditors are getting a good deal.

ric_flair

Thanks, the reason I asked was that the account in question that Im thinking about entering into an IVA does not currently appear on my credit files for some reason (bad internal admin at thier end i guess).

Thanks, im reading the link now, looks helpful

fermi

Well, you might find that if you enter an IVA that they suddenly remember you and decide to default the account.

But since they shouldn't date a default any later than the date the IVA agreement is signed, then it wouldn't matter really if they did.