www.iva.co.uk

Hi there,

I'm currently in the middle of an IVA, with around 18 months left (yay! not long now), and am currently paying £400.00 a month. I've just done a credit check for myself, and as it should be, the current people I am paying off on my IVA are showing as being the only outstanding debts I have with a big black D beside them for default. Any mathematicians among you would know that 18 months, times £400.00 a month, is £7,200 I still have left to pay. Yet all of the balances showing against my 4 outstanding debts only amount to £1,170 on my credit check.

Does anybody know, if I approach each individual company I owe the balances to, can I just pay my outstanding balance that way, and cancel my IVA? Or am I missing something here?

Cheers

David.

Hi,

If you fail your IVA you run the risk of having all interest and charges being put back on. Your credit record will be shot for the full six years regardless. Defaults will drop off after six years or, if they don't you write to the Data Controller for the Creditor concerned and tell them to remove it.

By entering an IVA you have agreed not to negotiate with individual creditors -- doing so will see the IVA fail and you will be back to square one. Creditors will then add back lost interest and possible late payment charges.

The balances on the credit report mean diddly squat, as different creditors account for IVA dividends in different ways and some even open dummy accounts. Some of the debt could even have been sold on and the new owners not reporting to the CRA.

Also remember that there are three CRA's and they can hold varying information ( one didn't even show my IVA or defaults when I checked ).

Lovely, appreciate the responses, helps put my mind at ease now. Cheers.

Not all debts will show on your credit file so just let the IVA run its course. A year after this your credit file will be cleared but failure now would badly set you back.

Different debts may show up on dufferent crefit agencies so I doubt your debt figure is correct. Was your total debt figure not added up prior to setting up the iva??

Paul

plasticdaft wrote:

Different debts may show up on dufferent crefit agencies so I doubt your debt figure is correct. Was your total debt figure not added up prior to setting up the iva??

Paul

Yeah it was. I just have an over active mind that always needs to make sure everything is right all the time when it comes to finances, so I'm constantly checking stuff to make sure it's right, and asking questions if necessary. But I'm happy with everyone's answers to my question on here and obviously carry on with my IVA. The time in all honesty is flying by and it'll not be long now till I'm debt free.

Start thinking about being debt free after the iva ends and what that £400 could mean to you and your family ! A holiday, a saving opportunity towards a new car , meals out .... or just a very comfortable lifestyle that is affordable. The budgeting skills you have learnt will stay with you forever now !