How does an IVA affect my credit rating?

As a general rule you are unable to borrow during the IVA.  You will have to surrender all your current credit and store cards and you will not be allowed to borrow until your IVA is completed.

However, you will be allowed to use pre paid cards.  You may be able to re-mortgage during the IVA (e.g. to obtain a better interest rate or if this is a requirement of the terms of the IVA) with the consent of your Supervisor.

A note of the fact that you have entered into an IVA will be entered on your credit file for six years.

Where you are required to raise funds during the IVA (for example by way of re-mortgage), this may affect your ability to borrow at competitive rates.

When the IVA has been completed, the Supervisor will send a Certificate of Completion to all your creditors, the Insolvency Service and the credit reference agencies, thereafter, your credit rating should repair fairly quickly.

Getting in touch with an insolvency expert for free debt advice is as easy as picking up the phone.  Call the Leeds Debt Advice Helpline on free phone 0800 169 1536