www.iva.co.uk

Hi there,

My wife and I have recently settled our IVA early by remortgaging our house and paying our creditors a lump sum. My question relates to my credit file which I sought a copy of to make sure it's been updated. It does have that the IVA is settled which is great, but one of the creditors has been putting defaults on my file every single month that the IVA was running, is this correct? All the other creditors put a single default on the inception date of the IVA apart from this one. Also should my file still show the amount outstanding for each creditor?, as the amount shown is not correct in light of the lump sum and payment made through the IVA, or should these be shown as satisfied? Any help is greatly appreciated.

I don't know the answer to your question, but I wanted to welcome you to the forums. One of the experts will be along soon to answer.

Just out of interest, how did you get your credit file, because I wanted to have a look at mine to check it is up to date as well.

Hi
A creditor has the right to mark the account in default during the IVA,they are reporting the accurate state of the account.However most just record the first month.
With regard to the amount shown as outstanding you need to send your cerificate of completion to the three credit agencies and ask them to contact each creditor to update their files
Regards

If they register a default a year after going into the IVA, will they take the 6 years from the date of the default or if you send confirmation that the debt was included in the iva and has been completed will they then remove the IVA and defaults at the same time. i.e. after 6 years from the date of the IVA and not the 7 years because the default was registered a year later

Hi
I'm afraid that it will be six years from the last default registered.They don't remove it,it just 'falls' off your credit file,bit like a boat sailing down a six mile river with a big waterfall at the end of it !!
Regards

That doesn't seem very fair when in BR a creditor you can't have a default on your file dated after the date of the BR order.

Hi
Didn't know that Skippy !! Mind you bankruptcy and IVAs seem so far apart at times nothing would surprise me.
Regards

I'm looking forward to the arguements I'm sure I'm going to have with Tesco Finance about this - I know for a fact they have been defaulting me since the BR order!

It is rather naughty of them to do this, as some of my creditors have yet to register any defaults, effectively they could be waiting until nearer the end of the IVA, register a default and you have to wait another 6 years for it to "drop off"

Hi,

Thanks everyone for their comments. The creditor in question (high st bank) lent the money against a vehicle I bought from a dealership, we never defaulted on any payments, we kept paying it right up until the IVA kicked in, so it seems a bit harsh to then have every IVA payment as defaulted but I guess that's their prerogative. Suffice to say if I ever take car finance again it wont be with them!

cr15py - I got my file through experian, you can get it free for 30 days, just remember to call up and cancel before this time or you start paying £6.95 a month for it.

Sometimes, I wonder if it would've been better BR than an IVA. We kept our home but in hindsight it seems like BR get better 'treatment' than IVA? We went the IVA route because we wanted to pay back the creditors as best we could, perhaps we shouldn't have been so considerate!

Hi
You make a valid point m.s,our next debt debate,2nd May,in London will be on the theme 'banruptcy v IVAs'
Regards

Ah thats my birthday, I might come along!

Where in London will it be, any idea yet would like to be involved, although I would like to meet up when you all do, I `ll keep my eyes open on the forum as Manchester bit to far away I know you were having a meting/get together
Cheers Pete

Hi
We will be meeting for our frugal friends meeting in Birmingham on Saturday 29th March [to be confirmed]The debt debate is on the 2nd May at Browns Courtrooms,Covent Gardens on the 2nd MAY.
All welcome