is my slate basically clean after IVA ?

[mark.r]

I am currently in a debt management programme administered by Bainnes and Ernst, they recently offered me the option of entering into an IVA.
I would like to know, after the five years has expired is my slate basically clean and ican apply for new credit such as mortages etc.
If you have any information on life during and after an IVA i wouldappreciate it.

[cr15py]

It's 6 years from the date the IVA is approved if I am not mistaken.

Not sure exactly what your credit file will show after that time though.

[ianmillington]

So long as you honour your IVA obligations the slate is wiped clean in that you will have no debt. The IVA remains on your credit file for 6 years from the date of its approval as cr15py says. That does not mean you won't get a mortgage or other forms of credit, rather it means that you probably won't be able to borrow quite as much and your interest rate might be a bit higher.

ian

[cr15py]

Just to check Ian, because it's something I will probably be looking at once my IVA is through - will my credit file be clean then, meaning that I will be able to get a mortgage on the same terms as someone who hasn't been through an IVA?

[Phil]

Hi Mark.r
Provided you keep to the terms of the IVA and keep up with the repayments then yes your Debts are written off in 5 Years.However the IVA will stay on your credit file for 6 years from comencement of the IVA.iF you do a full and final to finish the IVA(Make the creditors an offer to finish early)unfortunatly it still stays on your credit record for 6 years.
Hope this helps
P

[ianmillington]

Hi Chris

In many respects it's a case of beauty being in the eyes of the beholder. To some lenders someone fresh out of an IVA will be an attractive proposition, as they have no debt. Others won't touch you with a barge-pole until the 6 years have gone.

It's really hard to be specific on this because there are so many different things taken into account in determining credit risk. Whilst an IVA doesn't help, to many lenders a CCJ is worse (even if it's pre-IVA and the debt is bound by the IVA) - one of my clients had his IVA exit by remortgage pulled on those grounds.

So whilst you might be freshly out of the IVA, if you got a CCJ just before going into it the CCJ and not the IVA might be the thing that causes difficulty.

Make sense?

ian

[Phil]

Hi Ian
Is this the same as default notices?I had 2 or 3 while waiting for my proposal to be written up.
Mind you the thought of borrowing again makes me shudder !
P

[ianmillington]

Probably Phil, although like the CCJ these will likely as not pre-date the IVA so their 6 years will be up first.

[cr15py]

Yeah that helps a lot, thanks Ian. I didn't have any defaults or CCJs before my IVA - so I should be in a decent position for a mortgage post IVA (note to self - MORTGAGE, nothing else!) - I know it's more borrowing, but there aren't many people who can go out and buy a house with the money stuffed under the mattress! [:p]

[MelanieGiles]

Even if your credit files is adjusted after six years, a lot of mortgage applications now ask whether you have ever been bankrupt or made a compromise with your creditors. This is unlikely to affect the application, but I guess you still have to be truthful on the application forms.

[ianmillington]

Good point Melanie.

ian

[Hull_Tiger]

I've had a couple of default notices since the IVA commenced. Is this normal?
How long do they stay on file for?

[ianmillington]

Again, 6 years, Shaun

Here's a useful link:

http://www.ico.gov.uk/upload/documents/library/
data_protection/practical_application/
credit_explained_leaflet_2005.pdf