www.iva.co.uk

Hi,

I've just completed my 2nd year into an IVA.

I was going to look into a full & final payment, because of wanting to build my credit up. But reading through the posts on here your credit doesn't get better until 6 years after applying for an IVA. Is this true? If so what are the incentives for a full & final payment? (other than the relief of everything being paid up!)

Many thanks

An IVA will stay on your credit file for 6 years from the day of acceptance.

F&F could benefit people in lots of ways. Usually you have to have genuine reasons for wishing to settle i.e your future ability to keep paying or job change.
Creditors wont let you settle early to allow you to start rebuilding your credit rating.

Im sure one of the technical experts can explain better than i have xxxx

I think that you have answered your question in your last sentence! In that your income is then free for you to spend as you see fit once again. How would you fund the full and final settlement?

I was going to borrow the money off my parents and pay them back over the same 3 years thats left on my IVA, so my income wouldn't be so free, but was hoping that my credit rating would be amending over that 3 years.

Thanks for your answer.

Hi
The other advantage of paying off your IVA early is that you will not be bound by the windfall clause or overtime clause.Also I would imagine that your parents would be more flexible with repayments unlike the IVA
Regards

My F&F was accepted a couple of months ago ... it's a great feeling [:)]

Debbie

Your credit history is affected for 6 years however you can start to repair the damage once your IVA is completed. I completed a F&F IVA at the start of the year. I contacted all my many creditors and asked them if they would mark all my defaults as satisfied. All but one creditor (who I am taking legal advice about) marked my defaults as satisfied. Now the defaults will stay on my record but they are not such a risk as they are now satisfied and I know longer owe anyone any money. In fact I have been told by a few people that my credit file is still very good despite the IVA. So whilst you cannot undo the IVA if you get the defaults marked as satisfied and run any bank account/Mortgage/Mobile phone contract well it starts to build up your file again.