www.iva.co.uk

Hi, I am concerned that if I take on the IVA what the long term affect will be for getting any future credit, I am being advised that this should only impact me for 6years (5 during the agreement and 1yr fo repearing the credit), is this correct?

The other thing I am unclear about is will I have to change my current bank account from a standard account to one that is restricted and cannot make card transaction?

Is IVA really an ok option with only short term affect?

Unsure and need help?

Thanks

Your credit rating will be shot for 6 years from date of acceptance of the IVA i.e the meeting date. However, some financial institutions keep their own records and can have details of the IVA past this but your credit files won't display this after clearing them up.

Is your bank a creditor? If not and you have a full account with no overdraft facilities continue with this bank.

In 2006 we took out an iva as we were up to our eyes in debt. We only got our closure a month ago and although it was over 7 years from the start I would certainly recommend an iva as the feeling of a debt free life is wonderful we don't care about credit scores as never again will we think about getting anything on credit. We have a cashminder bank account which includes a debit card but no cheques and no overdraft facility but again who cares as we now live well within our means. Just choose your company carefully and good luck

Hi Marc

With the benefits brought by an IVA - to arrest creditor action, stop interest and in many circumstances to write off substantial chunks of debt, there are bound to be some downsides. If the ups are more than the downs ten an IVA is definitely worthy of consideration.

Talk it over with a few company's.
someone will be along with a link.
One of the best company's to talk with is mels,
Am over my Iva now and know I done the right thing.

Hi Marc - welcome to the forum

There is plenty of information now to help rebuild your credit record once you have had an IVA. With regards to your bank account you will still be able to have a bank account that allows you to do direct debits and make debit card transactions. You would need to change if your banking group is current creditor so as to protect your money from being taken to offset against debts.

I would recommend speaking to a couple of professionals to discuss your options further to understand the implications of each and only make a decision when you feel ready - any good company will never rush you into making a decision.

Hi Marc,

I was of a similar mind as hope to complete my IVA within the first 12 Months of IVA from the equity released from sale of my house. However, an IVA is essential as a mechanism to control your costs getting worse and beyond your control before you end up with bankruptcy as the only viable alternative.

For sure, it's not great as you still carry the burden of your debt with a percentage written off if your lucky...but you can still live a full life, do not have to declare CCJ's on House Rent/Car/Home Insurance, Job applications etc. and you keep a normal standard bank account but its not a quick fix or easy ride. An IVA is a wake up call that change is needed even if your circumstances have not been your fault i.e. redundancy at work, relationship breakup etc. it is all part of life and an IVA helps you cope better through what is otherwise a very difficult and stressful period in your life. It is not your fault..it is the way the government/banks want you to behave and they control the economy which in turn affects jobs and cost of living that affects us all....

Cheers and Best Wishes....

Mark