I am about to clear my IVA 2 years early by selling my property. An amount has been agreed by all creditors so there will be no more payments. I am therefore looking to rent a property with my partner, under his name - not mine. We were at the point of signing contracts when we were informed by the landlady of the property that she was not prepared to rent to us because my credit search showed that I was bankrupt. I have proven I am not and explained the situation but despite the property not even being in my name she is refusing to have me on the tenancy agreement even as someone living there because she claims it will have adverse effects on her credit rating at that address.
This has thrown up several questions
(a) is this true? I thought the credit rating was now attached to an individual not an address?
(b) why does my credit rating state bankruptcy instead of IVA?
(c) is there anything I can do to alter my credit rating to reflect this?
(d) when I complete my IVA do I get a certificate to prove it was finished early?
(e) how long does this stay on my credit rating - I have read 6 yrs but is this 6yrs from start of IVA or from completion of IVA?
(f) is there any legal action I cant take if a landlord discriminates against me living in a property even if I am not the official tenant and my partner has a clear credit rating and very responsible job (Doctor).
I feel aggrieved because morally wanted to enter into an IVA rather than bankruptcy but feel bankrupts are treated better than me as it now seems their credit rating clears quicker!
Your landlady is being silly.Credit files are for the individual and not the address and she has nothing to be concerned about. You will get a certificate to show your discharge from your IVA and obtain a copy of your credit file to show you are not bankrupt.
Your credit file will be damaged for six years from the date of the IVA and then the defaults etc should just fall off. While I accept you are being unfairly treated you would need to seek legal advice to see if you are being illegally discriminated against.
thanks for your reply - do you happen to know, if I am finishing my IVA 3 years early, will it still stay on my credit rating for the full 6 years - in which case there seems little benefit in me trying to finish it early...
Any adverse information such as defaults are held for six years anyway so your credit file does not clear up straightaway. However, the defaults should be marked as satisfied which will make it easier to obtain credit.
At the moment credit is very difficult to obtain but this should change over time so there should be a benefit to you of having the IVA discharged early. Regardless, it will be nice to be debt free and you can apply for credit. Some companies such as Vanquis will give cards to people discharged from IVAs but not to those still in one. The rates are high but provided you clear the balance each month you will build up your credit rating and score.
Thank you Michael - really helpful.
Do you know of any good mortgage companies that are likely to offer a mortgage after being discharged from an IVA too?
There are a few but the deposits are high and the rates can be penal. Until your credit file repairs itself it may be better to obtain any mortgage in your partner's name and you can be added at a later stage.
The situation may change in the next couple of years as only a few years ago lenders such as The Chelsea Building Society were lending to discharged and ongoing IVA clients at rates only slightly above the high street.The credit crunch has badly affected the mortgage market and the few lenders remaining can pick and choose their clients and effectively charge what they like.
