Situation after paying IVA in full??

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gash
gash Posts: 52 Forumite
in IVA & DRO
Hi. Hopefully later this year, I'll be able to pay my IVA off in full. So not a full and final offer, but paying every penny I initially owed due to an inheritance.


What situation will I be in then? Will I still be classed as insolvent? Will everything on my credit file show as settled and I can immediately start to rebuild my credit file? Or, will I still show as having had an IVA in the recent past (started just over 2 years ago) and be stuck with poor credit for another 5 years or so?


Thanks!

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  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
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    Hi there,


    The IVA will show for 6 years from the start date, but, once paid off in full the debts should be marked as fully satisfied. Once paid off you will no longer be insolvent (as you have no debt), but the insolvency option will still show on your file (I hope that makes sense).


    You can start to rebuild your credit file once you are debt free, however, this may take time and you may not be able to obtain credit immediately.


    Your credit history is constantly influenced by many factors to give you your overall rating. Future lenders do not see the score generated by the credit reference agencies, they only see your history. Your history shows things such as whether or not you are on the electoral role, anyone you have financial associations with and, of course, your financial history. So, the IVA will have a negative impact, but paying the debts in full and showing the IVA as settled will be positive. Your credit file is a 6 year rolling document so the older the information gets, the less impact it tends to have on your rating, but will show for the full 6 years. Good luck,


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • gash
    gash Posts: 52 Forumite
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    Thanks Laura.

    So, just to clarify, the 'insolvency option'....this means anyone who checks can see I have been insolvent in the last 6 years? Thanks again :-)
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
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    Hello again,

    The IVA will still show on your credit file even though you are paying it in full, because it will show for 6 years from the date it started. So anyone who checks your credit file within 6 years of that date will see that an IVA was in place.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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