Hello, I started my IVA 4 years ago as I simply could not meet payments of debt (I had been on debt management leading up to this but I would NEVER have cleared the debt). I live in a privately rented flat with my 8 year old son, however, my dad had to be a guarantor due to low income. I then started the IVA after I moved in. I have since met someone and the goal is to buy somewhere together. Whilst I know this is impossible whilst I'm still PAYING my IVA (1 more year) do I have to wait a further 12 months until we can apply for a mortgage together? Fortunately he is in a good financial position with an excellent credit rating. Mine on the other hand is appalling! Is there anything I can do NOW to get this tidied up? ie. I have all my accounts that are included in my IVA showing as default. Will these not show as settled until I have finished paying IVA? Or can I ask the lender to remove this now? We want to start a family of our own but I'm getting worried that we won't be able to because of the state of my credit [V] all I want to do is get on with my life and I now wish I had just accepted that paying off debt for the rest of my life was just the way it was. I thought getting an IVA was the right thing to do but its really shot me in the foot. Yes I made STUPID mistakes between 18-22...I'm nearly 30 now and paying for my mistakes big time.
You won't really be able to do much to update your credit file until your IVA is finalised - but at least you only have one year to go. Would your partner be able to purchase a property and get a mortgage in his own right?
And what is stopping you trying for that family now ... It may take a while ..don't put your life on hold!
Mortgage wise ..if your partner is able to get it in his own name then i would suggest that. Until you receive your completion certificate and any defaults drop of your credit report etc you will struggle ... You can always add your name to the mortgage once everything is removed at the six year stage.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
The problem we have is even though he's in a great financial position, he can't get the mortgage that we need for a family home (remember I already have an 8 year old son) without my income too, so I absolutely have to put everything on hold. I just wish there was something I could do now to even help slightly! Of course creditors will not even consider the fact that I have lived CREDIT FREE since 2006 (I started my IVA in 2009)which the majority of the country cannot manage without, and EVERY OTHER financial commitment I have has been paid on time, every time apart from those included in my IVA. I would NEVER EVER recommend anybody take an IVA. The serious ramifications are not thoroughly explained. Yes, it may get you out a pickle...but you'll ruin your future in the process!!!
An IVA is an excellent solution for you to be able to find your financial feet again. It shouldn't and won't ruin your life or your future financial plans.
However, you do need to be a bit patient. Whilst you're still paying your IVA, you will not be able to get any form of credit and your credit file will be shot to pieces and the chances of you being included on a mortgage are very slim. You finish your IVA in 12 months time, and 12 months after that, your credit file should be clear (however, you may have to tidy some of it up yourself).
Most creditors see things in black and white and will credit search you and will see a record of your insolvency and that will most definitely decline any application until your file is clear.
Try and bear with it. Worse case scenario is that it's only another 24 months. Being in an IVA should not halt your plans to have family, so you can start on this straight away!
Hi Cazza1984 - sorry to read about your frustrations with the delays you are experiencing. I wonder what your alternative would have been had you not done your IVA - bankruptcy would potentially have had a greater impact and a DMP would have taken even longer. Once the timeframe is over you can set about repairing your credit file - I am sure the 6 year window of adverse affect on your credit file would have been explained to you.
An IVA is not right for everyone and with the right advice those people choose a different solution. Sometimes it can be easy to look at things differently once you are the other side of the decision and if circumstances change.
I wish you all the best with your future plans and congratulations on your new relationship - exciting times ahead...in time
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
Hi Clare, there is absolutely no way I can start a family right now. I live in a 2 bedroom flat (if you can call it that) which is practically a bedsit. And as mentioned I have an 8 year old son from a previous relationship too. How on earth could I start a family when there is absolutely no room firstly, and secondly, I'm still tied into this. I am not looking for credit/mortgage NOW, I was simply wondering if I can get the ball rolling and start clearing up this mess now. And yes...as mentioned previously a DMP would have taken much longer...maybe the rest of my life but at least I could have been in charge of my own destiny. And no Tina, 6 years was NEVER mentioned. Clear your debts in 60 months was what was sold to me. No mention of a discharge period. But I guess that's what happens when you're young, on your own and have nobody actually looking out for your best interests...just greedy banks that are trying to claw back the money they irresponsibly lent in the first place! Bankruptcy was NEVER an option...I always intednded to pay back whatever I could..I spent it afterall.
Sorry to hear that Cazza as it is a fundamental piece of information that clients should be given when deciding on their options, no wonder you feel a little let down.
Nothing can be done now but focus on the present and future, it will be scary how quickly the remainder of your time flies by and you'll be in a new home with your partner, son and taking the next step of expanding your family
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
