Can someone tell me if what one of my creditor is telling me is correct please?
We completed on 29 July and received all of our documents confirming so shortly afterwards. Was a long slog to get that far I can assure you.
Since then I have monitored mine and my husbands credit files to make sure that everything is going as planned regarding defaults etc.
I wrote to Next as they were one of mine creditors and asked them to remove the default and mark my file with them as satisfied as per advice from Grant Thornton. All of my other creditors have marked as satisfied as expected apart from Next.
They have replied to me stating that the account is now marked as partially satisfied and the default won't be removed until the six years is up.
They seem to be under the impression that we have a bankruptcy order and not an insolvency order, however I know it still goes through the bankruptcy court.
The thing that confuses me is the following:
The default status will remain on your credit file for a period of six years and this will be dated no later than the date of bankruptcy.
Is this correct? We were never in bankruptcy. Can I call them and explain that this isn't strictly correct as it was an IVA and not a bankruptcy order? I would like to make sure what I'm saying is correct and factually true. As I say all the other defaults have dropped off now and this is the only one left marked as still ongoing. The others are also marked as satisfied which I was expecting.
The default will stay on your credit file for 6 years from the date of your creditors' meeting. Did your IVA run for 6 years or did you finish it early?
If the 6 years is up Next has to remove the default and you may need to contact the Information Commissioner to force them to comply. If it's less than 6 years Next are correct (providing the date of the default is no later than the date of your meeting) and they are entitled to mark the debt as partially satisfied.
No we completed early. I think the thing that's confusing me is the wording of the letter, saying about a bankruptcy order, when it's not. Is that just the wording they're using??
They probably have a standard letter and whoever sends them out doesn't know the difference between an IVA and BR.
From what you've said Next are acting correctly providing the the date of the default is no later than the date of your creditors' meeting and the account has been marked as partially satisfied.
An IVA is an act of bankruptcy and it really makes little difference to lenders whether you were bankrupt or in an IVA. Your credit file is still badly damaged for 6 years either way.
An IVA is a contractual agreement between yourself and your creditors - with them accepting a compromised settlement due to you being insolvent. It is not the same as bankruptcy, and should not be treated in the same manner - although creditors will make their own minds up how it is to be treated internally and there is not much any of us can do about that.
That is all you can do Churchyn - it should have been explained to you at the beginning and definitely when settling early that the IVA will remain on your file for the 6 years regardless. Get that date In the diary and be straight on the phone when the time is up!
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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