I have been in an a 6 year IVA now since the 11 March 2010 and all seems to be going well and my IP has been brilliant.
I recently found out that we are expecting for a second time which although is great news , I have now started to review things even further and worry about things in the future like how we move on from the property we are in to accommodate the growing family.
As part of me reviewing my situation I got a free credit report from Equifax today and was sort of pleasantly surprised as it listed I had only £8,308 non mortgage related debt left to my name and £ 6,178 was the NRAM together loan which is in joint names and has been paid in full on time every month since the loan was taken out back in in August 2007.
The other outstanding debts are with Pco Holdco - £ 1,685 & Santander - £ 445.
My question is although the NRAM loan forms part of my IVA it is still being serviced each month as it is a joint loan , if I were able to some way get the funds from family or friends to clear the other two outstanding debts could I bring the IVA to a close early and what impact would this have on my credit file ?
I don’t want to be in a positon where my credit file is worse off , but given the home situation ending the agreement would be advantageous.
First of all congratulations and now would be a good time to close the IVA. You could offer a full and final settlement but your credit file will remain dmaged for six years from the date of approval even if cleared in full.
Speak to your IP as not everything may be listed on the credit file so there could be other debts but a settlement does seem like a reasonable option.
I agree with Michael. Although the settlement would not clear your credit files until the 6th anniversary of the start of the IVA, it would certainly be one less worry.
You would have to make an offer based upon remaining payments x current monthly amount and might have to factor in 12 extra months in lieu of equity.
Congratulations on the impending arrival and the best of luck for the future for all of you.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
