I would very much appreciate any information on the following from people who have been in the same situation as me or the Pros out there.
I am just 1 month away from completing 2 years of my IVA leaving 3 years to go. I am planning to get married next year and move into the house my partner owns, now if I wanted to end my IVA early with a lump sum could this be done by my partner (who would be my wife at that time)
The IVA is all in my name and has nothing to do with her, the reason for her paying my IVA off would be to clear my debt and make a fresh start and get a joint mortgage, If this is allowed how long do I have to wait before I am allowed to borrow again, as I understand it because I defaulted on my debts they will be on my credit file for six years, if I pay off my IVA early would they all get removed or still stay.
If the IVA was paid off early but I was still black listed for six years then it would not be worth paying it off, when we are married and living together how does that affect the expenditure ? as we are living together do they need to know her income ? and do they expect to split all the bills and food 50/50 ?
You can offer to end your IVA early and you would need to offer as close to the original dividend as possible and your partner can offer to settle this for you - she would need to stipulate that the money is only available for a full and final offer.
Regardless of whether you finish early or not the IVA would stay on your record for the full six years and you would need to clean up any defaults registered after the date of IVA acceptance.
At the moment I would not consider doing joint finances with your partner as this will severely impact her credit rating.
Once you are living together then her money will be taken into account for the household expenses so that you are both paying your fair share.
Something to discuss with your IP as they have full knowledge of your circumstances.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Jeff, Your credit file would still show IVA for the whole 6 years from the start. Also, full and finals are put forward with a substantial reason i.e impending redundancy, inheritance etc.
Wait for further expert advice but it may be best to stick with it. Your wife would not be involved in the IVA and will not adversely affect her other than your annual I & E would need to take into account her contribution to household bills.
So as I thought it does stay on your file for 6 years even if paid off early, in that case she is better off keeping her own money and I shall carry on as normal,
you said above
" At the moment I would not consider doing joint finances with your partner as this will severely impact her credit rating"
I would not consider doing a joint fiance as it is my own debt, as I said that when we move in together we will most likely have to tell my IVA company I am now married and living with a partner and expect to go 50/50 on all bills and food, would it matter if she earns alot more than me ? and when we are married does it affect her credit rating that she has married someone who is in an IVA, will it affect her rating if she is taken into account for a fair share of the bills ?
If its affordable for your wife to offer a lump sum to pay off the iva early then that can be no bad thing but I would avoid any joint borrowing until the credit file is clear. You say that if you remain blacklisted it won't be worth paying it off early but at least if its paid off you can use any windfalls or extra pay to repay your future wife!
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
You will have to tell your IP and the amount of what you pay into the household finances will be proportionate on the earnings so if she earns more she'll be expected to pay more which may well free up more DI for you to pay across to the IVA.
As long as you have no joint finances at all (not even a joint bank account) then your partners credit rating is fine.
If she can make an offer then I'd go for it, as Paul says once that happens your money is your own.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks for the reply's guys, She would most likely re-mortgage to get the money but she just said if it stays on my file even after it is cleared then she is not so sure, At the minute I am paying just over £210 per month into the IVA, if I wanted to offer a final settlement based upon what I pay each month and the remaining months after we get married it would be something like £210 IVA a month x 24 months left in the IVA = Just over £5000 is this a sum that you would go by to offer a full and final settlement ? do you have to take into account possible wage rises and the fact that we would be living together it could change the income and expenditure meaning I could afford to pay a little extra each month.
The £5000 sounds sensible if it is proposed before your I&E is reviewed as part of a couple. If you wait until you're paying more per month, creditors may well expect more. You don't need to take future pay rises into account as these are only hypothetical.
If your partner earns more than you, then she should pay a higher proportion towards the shared household bills when you move in together - so this could affect your IVA payments, and would also need to be taken into consideration in any offer of early settlement.
I have just had my IVA variation accepted after my second attempt/offer. I owed about 12k over 5 years paying £266 a month. With 1.5 years into the IVA I offered 7k which was declined. Then 2 years into the IVA I then offered 10k on the outstanding amount of 11.5k which was agreed to this January - hurruh!
My father paid it off for me, and my story to Grant Thornton who has my IVA was the fact that I lived alone and had increasing car expenditure (I have a 12 year old car and the IVA restricts you from being able to get a new one or car lease) and with increasing bills etc I explained (or threatened) that I may go bankrupted as I did not have enough to live on (in this case they get a lot less!).
There were a few "creative" things that I did that helped the process that may help, that I should not mention here but it did help.
Although my IVA is all paid off we do have to wait the full 6 years from when the IVA stated before it comes off your record. Another thing I advise is getting the Experian credit reports, I reduced my credit scoring by making a few calls to Experian, not only where they brilliant they tidied up my credit scoring to a healthy “good 936” and made some great recommendations on how to get the rating better as the IVA will be on my report for a few more years. You can pay £14.99 a month but now I pay £7.99 for the report as your actual credit scoring pretty much stays the same apparently!
Don’t forget - even if your credit rating was a perfect 100 you still have the IVA on there. Experian advised that including narrative and an explanation on your report which Experian can add for you will help. Sending off my certificate of the IVA being paid off will also help and you then will be able to apply for credit cards etc. The banks refer to the narrative when doing credit checks so if you explain that you had an IVA and why and you paid it off it may help when you want to join your wife’s mortgage. My boyfriend had to get a mortgage on his own this year which I am very keen to get on when my rating gets better. I may even try next year – it has been known to happen if your credit rating is tidy.
Also I had a chat with an expert on one of these forums – he was great and suggested that although I probably won’t be able to join my husband’s mortgage for a few years - I now have 3 years to build my credit rating up even more – getting a credit card, using it and paying it straight off will help, maybe trying to get little loans – like buying a sofa on credit and paying it off monthly for 3 – 12 months showing that you can borrow and pay back on time. Banks will look at this along with the fact you paid off the IVA and may be able to come to a special arrangement. I earn a good wage now and have more disposable income that I am sure the banks would like!
I am really glad I did it, The fact that on record that I am debt free is great, I also get to keep all of my work bonuses now (which helps pay my father off sooner). If I need to get a car lease or credit card or overdraft I can try without permission. If your wife can help then I suggest do it its gives you a 3 year head start!
Good luck and give me a shout if I can help with anything else
It’s worth bearing in mind that when you make your variation offer (on the formal paper work) it can take up to 2 months for the IVA variation date to be set and in that time you would have paid £210 a month for over 2 months. I offered aprox £800 less than the final settlement amount this included my normal amount for the 2 months that I paid while we were waiting for the hearing date.
If you have £5000 left on your IVA I would offer £4300 - £4500 and continue to pay the extra 2 months. If you offer too low they will not accept it like they did on my first attempt
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
If your partner earns more than you, then she should pay a higher proportion towards the shared household bills when you move in together - so this could affect your IVA payments, and would also need to be taken into consideration in any offer of early settlement.
