If your credit file reflects default

[flumpy dog]

Are creditors who didnt vote for iva but bound by it
Bound by this default thing too ?

[flumpy dog]

Gonna order my credit file and see if any defaults after iva approval
Was supposed to be asleep for nights but mind is buzzing grr !

[ytsejam]

This looks to me like certain lenders trying to penalise people for renegeing on their credit commitments - we are getting default notices (but strangely only mentions of a default logged with the credit agencies) from the only creditor who did not agree with our IVAs. Our major creditor actually had the decency to notify us. None of the others did, and are all very quiet now.

It seems to highlight a general lack of awareness around IVAs and a lack of defined rules for the interaction of the IVA legislation and the credit referencing agencies. Bankruptcies appear to have this (the withdrawal of all records of credit, and replacement with 'bankruptcy'), and it gives the certainty of the 6 year rule.

Why, when the credit references and lenders consider the two to be equal, don't they treat the people under the terms of each as equal. IVAs were concieved as an alternative (but equally serious) to bankruptcy. The professional body i belong to draws a massive distinction between the two, as it understands them, and can see the differences, but appreciate what both are trying to achieve - an appropriate solution to excessive, unaffordable debt. Lenders appear to not appreciate this, and as a result can't consider what they are both attempting to acheive.

Kallis3 on this forum has posted about trying to repay more under an IVA than bankruptcy (which can be true) - why don't lenders appreciate that they are getting more under the IVA?

Perhaps this is one for David Mond to raise via his contacts - I agree with Melanie earlier - the majority of the creditors have accepted your best compromise offer and legally, all your creditors are bound by that offer. There are no rules in place to reflect this on your credit report. Hopefully, as there are record numbers of personal insolvencies at present, this will move to the top of an agenda somewhere and get sorted, so that IVAs remain an alternative to bankruptcy, but without the publicity and asset loss (but with ultimately the same effect).

/rant
If nothing is done or clarified, I for one will be causing a hell of a stink - it was made clear from the outset that once the IVA is cleared, my credit report will be clean but my score will need rebuilding. No where did it mention lasting damage for 12 years. I am hoping to move house in around 6 1/2 years (1 year after our IVAs finish) to get into a better catchment area for our kids (who aren't in school yet). Unfortunately I can't go bankrupt, but why should I be penalised because I work in a profession where I'd lose my job etc./rant

Sorry for the last paragraph. The last few months (the first 5 of the IVAs) have been harder than expected.

[james.c]

Heres an example of what your report will look like.

D6666654321000

The D tends to go on around the time you have entered your IVA, but when you have completed your iva the creditor will change it so it reads -

SD666665432100

Now this shows it is settlted, but because the S is only jsut put on, after your IVA as concluded then this stays on your report for 6 years, with the D still showing

[MP1965]

My IVA was approved in 2004 & recently completed. Having checked my CRF a couple of creditors did not place defaults on my accounts until 2006! How can they be allowed to default it 2 years after IVA agreement?

Therefore, although the IVA will fall off next year, the incorrect defaults will not! I will be writing to them to get it amended once my certificate of completion comes through! Fun & games...

[rayb]

I think we need to get full clarification on this because I will not be happy when I finish my IVA wait the extra year when all my defaults should fall off and then find that I have another 6 years to go as I want to buy a home of my own etc.etc

If this in turn is the case and they stay on there for longer than the initial 6 year period then I think most people will just go bankrupt

[ytsejam]

These two illustrate my point exactly - wouldn't happen under bankruptcy, so why should it happen to those under an IVA.

The lender should be banned from updating credit reference agencies, once the IVA has been recorded, and then on completion, never darken our door again.

Why are they even bothered - they are not getting any further money under the IVA, and then denying themselves income in the future.

[flumpy dog]

my iva was and still is a god send

but im not happy with creditors playing these silly games.

i agree with you guys that the creditors seem to determined to punish us debtors for longer than necessary

[james.c]

i agree it now seams better for this reason to have gone bankrupt.

Also creditors treat a default the same as a ccj, kust like they treat IVA like BR

[flumpy dog]

groan really depressed now and gotta go to work tonight double groan


hope someone can clear this up [:(]

[IVA_kid]

My view is that an IVA is just as bad as BR. From all the information that I've read and the 3 years I've been in an IVA, I see virtually no advantages over BR. This kind of thread concretes my thinking even more. The only reason I see for getting an IVA over BR would be to stop losing all my assets, which I think would only apply in a few cases.

I'm really wishing I'd gone for BR now 3 years ago, the only thing worse than an IVA is the bad stigma attached to it.

[ytsejam]

Unfortunately the only way this will be cleared up (imo) will be if an employee of Equifax et al deigns to let us into the dark arts of credit scoring, or we start to get treated like normal people rather than dirt for having the temerity to adress our debt issues and try to pay back as much as we can afford.

I wonder how it affects people on long-term DMPs...

[ytsejam]

IVAKid - IVA and BR are not even remotely similar, and you should have been suggested the one most appropriate to your circumstances.

I don't have the option of BR, as I would literally lose everything (house, car, job), but the IVA allowed me to keep all three. Unfortunately, it appears the price for this is to endure a status quo for the next ten years

[flumpy dog]

[:(][:(][:(]

[james.c]

DONT get down in the dumps an iva is still a good thing overall.

I have now sent all my letters out to my creditors and all credit agencys and will let you know the outome, but have the feeling it could take several months to sort out, i am through a technicallty i will also get some of my defaults taken of, if i do and everyone does what i have done it will help loads of you no problems