Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

By yorkiegirl
#223221 I have 6 payments left to pay on my IVA and am finally seeing a light at the end of the tunnel. It is my intention when my IVA finishes to check my credit files to make sure that all my creditors are correctly listed so that everything will 'drop off' my credit files after the 6 years. I would then like to move house. Has anybody had any experience of getting a mortgage after the IVA has come off their credit files?

Obviously, I will have to declare it to a prospective lender, but once it has been removed from your files, is it then easier to get a mortgage? I have paid my IVA and mortgage religiously without any problems and have fully complied with the terms and conditions of my IVA.

Also, my IP has a land registry charge on my property. Is this removed automatically when the IVA completes or do I need to do anything? I know when conveyancing is done on a house sale, a bankruptcy search is conducted which shows up IVAs. Is this just a check of the Insolvency register or is there anything else I need to do to make sure all the paperwork is correct?

Just hoping someone might have experience of this........many, many thanks for any advice!
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By submariner
#223332 Sorry that it's taken a little while to get back to you... been a busy week!

Firstly, when you check your credit files, (it's really only Experian and Equifax that matter) you need to check that your creditors have defaulted your accounts on the right date... which should be more or less on the date of your IVA start/acceptance or before. If any are showing dates significantly beyond your IVA start date, or without a date at all, you need to get that corrected by writing to the creditor filing the report, with your IVA details.

Give it a few months after your IVA completes for things to catch up, but you also need to check that the files show that they are now "satisfied" or "partially satisfied" (different creds use different expressions) and that the balance is now zero. (Having recently chatted to MBNA on that last point, they say that they show a balance that is the total, less the IVA payment to them; not a lot we can do about that...) But they do show all other details correctly, so it's just a case of waiting the 6 yrs from IVA start.

As to getting a mortgage... it's difficult to say what will be happening in 6 years time. I think all you can do is what you suggest; make sure your file will clear itself in 6 years and wait and see what the financial markets have done by then... Anyone's guess! :roll:

Your IP's land registry interest should be removed by him/her as part of the satisfaction of your IVA; you shouldn't need to do anything but monitor to make sure that it's done. Simples :D

Finally, your IVA will drop off the Insolvency Register within a short time of your IVA satisfaction (again, you don't need to do anything). However, your IVA start and satisfaction is also shown on your credit files, so that will take the 6 years to disappear.

Hope that helps so far! Best of luck - it's a great feeling when it's all over. You walk around with a feeling of satisfaction and silly smile on your face for ages :mrgreen: