Questions and Answers

Throughout this site you will find tonnes of valuable information about Individual Voluntary Arrangements.

We love to answer your questions, no matter how big or small. Here is a selection of questions and answers from the last few weeks:

How badly will an IVA affect my credit rating?
Whilst you are in an IVA, you will not be allowed to take out any credit. Most IVA’s last for 5 years (60 months), you will remain on the Insolvency Register for between 6-12 months after your IVA has completed. After this point, you will then find it easier to get credit (when needed).

I want to get a mortgage, can I do this in the future?
In a word, yes! Your credit rating will be greatly affected by an IVA but once your IVA is completed, you can feel free to shop around. Please be aware, you may need to look for a specialist mortgage provider who can deal with people with adverse credit histories.

Will an IVA affect my bank account?
It depends on who your debts are with. If you have a credit card with the same company as you are banking with, they can apply their “right to offset” to reclaim the money you owe. In this situation, your Insolvency Practitioner may recommend that you move banks to avoid this.

Can I rent with an IVA?
Your IVA will not affect your current tenancy. This means that there is no need to tell your landlord. You should keep on making your payments on time, to avoid any arrears. If you are looking to rent out a new house, this usually isn’t an issue. Although some landlord are stricter than others when it comes to renting their properties out to people with adverse credit.

Does an IVA stop bailiffs?
Yes, but the IVA will have to be in place. With some companies this can take up to 28 days. If you have bailiffs at your door, or due at your door shortly; once you have agreed your IVA in principle we will deal with the bailiffs for you to avoid them entering your property or repossessing your items. But don’t delay, as time is important when bailiffs are involved.

Can I set up a company whilst I am in an IVA?
Yes, an IVA will not affect your ability to open or manage a Limited company. You will also not have to resign or surrender your directorship if you are already the Managing Director of a Limited company.