If a person takes out an IVA

[k.d]

If a person takes out an IVA, would they be able to keep there credit cards? Also, would they be able to get loans or anything else on credit? Thank you.

[james_7]

hi your answer is no credit allowed what so ever. can i ask why you want credit cards and loans if you want to get out of debt?
james

[aguise]

Have to agree with James you should be wanting to get rid of credit. In an iva you are not allowed credit unless specifically allowed by your ip.If you took an iva all of your debts would be included and your accounts should be closed. You would have to be insolvent to apply for an iva.

Ang

[MelanieGiles]

Hi kd

The other posters are correct. An IVA is a serious commitment to repay overborrowed monies for a reasonable length of time, and in return your creditors will agree to write off a percentage of your debts dependent upon your particular circumstances.

Your certainly cannot keep any credit cards, neither can you in bankruptcy or should you under a Debt Management Programme.

It is possible that you may be allowed to take our credit during an IVA for exceptional circumstances, such as HP for a replacement car, but the rules are generally no credit - and most clients are happy that this is the case!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk