IVA Completed Early - Next Steps

[Djc_Debt3]

Hi Everyone,

I’m new here and would just like to say hello to everyone. I been through hell and back with Debt problems and I know it feels.


My Background
I completed an IVA in June 09 after only being in the IVA for 12 months. I was made redundant and I settled the IVA with 50% of my redundancy payout, and have wiped of a huge amount of Debt! I still can’t believe it.

I would just like to ask if anyone has got any advice on what I need to do to start thinking ahead as I would really like to get on the property ladder one day?

I know this sounds silly since I don’t have the best background however, being in debt has really changed my life and I really look after the pennies now. I now have a healthy sum behind me in savings.

Any advice on what to do as forward planning? Do I start with Credit reports etc..? I know I had a CCJ from one Creditor in 2008ish.. Will this now be gone, as it was part of the IVA I completed?

Also if anyone has any questions regarding my final settlement, ill be happy to help.

[raqia]

I would like to ask you how long it took to finalize you full and final settlement I offer my f&f since July 2010 but nothing until now

[Djc_Debt3]

Hi Raqia,

It was very quick for me. My IP arranged a variation meeting from about 4-6 weeks since we agreed to offer half my redundancy payout.

[Michael Peoples]

It will take six years for your credit file to be completely repaired. Keep your bank account under control and make all payments to the like of Sky and mobile phone companies on time. You could apply for a Vanquis card and if accepted clear it each month.

While these things will not clear your credit file they will improve your credit scoring and there is light at the end of the tunnel.

[kallis3]

Hi and welcome to the forum.

Congratulations on completing your IVA. What a relief for you.

As regards your credit record, the IVA will remain on there for the full six years from the date of acceptance. If you have any defaults registered after the date of acceptance you can write to those creditors involved and tell them to remove the defaults.

You can start to rebuild by making sure your bank accout, mobile phone etc are up to date and even take out a credit card such as Vanquis which caters for poor credit history. As long as you use this wisely it will all help.

Raqia - I would speak to your IP about your offer. You should have heard something by now.

[Djc_Debt3]

Hi Everyone,

Thanks for the quick replies and great advise! I’m am so thrilled that my debts have eventually been sorted! Its all thanks to the IVA.

So I’m on the right track by the sounds of it...
1) One my bank account is ALWAYS in credit since IVA - I’m so careful nowadays!
2) Bills always paid on time!
3) Never applied for credit since!

I will look into the Vanquis card, however the thought of owning a credit card again makes me feel sick inside and I wouldn’t wont to use it.

I have two more questions, in which I need advise

a) I’m currently renting and hoping to be a first time buyer one day.. I’m interested in the homebuy scheme - Part Rent Part buy shared ownership..

Would I have to wait the full six years in order to get the mortgage?

b) When I started my new job, my firm had to do some vetting checks on me due to the clients we work with.. It did come back on a credit report that I had an 'active' CCJ of 17K, that was part of the IVA.

I phoned the court up and they told me that even though I completed the IVA and the CCJ Dept was included in that IVA, It would remain active until the CCJ expiry date (even though its been settled!)

Is this true and how would that affect me in a mortgage application?

[kallis3]

Do you know what the expiry date of the CCJ is? It may well be that it is due to drop off before the end of the six years.

Get a copy of your record from all three agencies, Experian, Equifax and Call Credit to check to see what is listed against you.

As regards the card, just use it once a month for something like petrol, pay it off straight away and it will look good on your record.

As regards the mortgage, it's unlikely that you will get one at the moment. No harm in asking though.

[Djc_Debt3]

Hi,
Thanks for the info andf I will get the ball rolling in terms of the credit reports (using trhe template from here

Reading on here, I seem to get the feeling that its normally about 3 years post IVA for morgages? Is this correct?

I know that there is no set in stone time peiod and it depends case by case, but is there a rough idea of when to apply?

Im basically plugging away £1000 a month, so should have a nice deposit when the times right.

[Michael Peoples]

All you can do is keep saving and hopefully the mortgage market will recover soon and products can be made available for people who previous financial problems.

[TheMatrix]

If you build up some good credit now, though sky, your bank account, mobile phone etc that will start to build up your credit rating.

Forget vanquis, cause it will show up as a red flag on your credit report - as though you cannot get a normal rate card.

If you follow the templates, you should end up with the default dates on or before the date of your IVA agreement. Everything will then fall off your file in 6 years.

Your file should then be clean and you could apply for a mortgage with no record of the IVA or default on your credit file

[kallis3]

I don't agree about Vanquis, there are a few posters on here who have it and have had no problems getting credit elsewhere. You may have one because you are just starting out on the credit route regardless of whether you are young or old. It is not always those who have been in an IVA or have bad credit who find it difficult to get on the credit ladder.

[TheMatrix]

Maybe, personally though I think you could wait the extra year before getting a credit card at the bank you've been with for the past 6 years plus and not have to take that risk.

[kallis3]

I'd like to think Nationwide would do me a full account, but considering they would only do me a cashpoint card when my credit rating was good, I wouldn't hold my breath!

Personally, I will be looking at Vanquis to rebuild my rating.

[TheMatrix]

If you've been with them 6 years plus, and you have no negative information on your credit file, I would think they would look more favourably on you than somebody walking in off the street and asking for one. At least they should know you

I went into the nationwide the other day, and they offered me a credit card. Told them I'm not interested but they always offer something at the counter. If only they knew!!

[kallis3]

I tried to open a Nationwide account prior to an IVA with an excellent record. My main account is with them now, and they have never offered me a main bank account

I still have a full Barclays account, I know they are one of my creditors (not hubbys) so I will just keep it open until the end of the IVA and then make it my main account.