Will my Credit Rating be Affected by Utilising an IVA?

Your credit rating will indeed be affected by utilising an IVA, which is simply an Individual Voluntary Arrangement. An IVA can affect your credit rating in an outstanding way. Many people utilize IVA’s as a way to repair their less than perfect credit score.

What an IVA can do for you is extremely simple; you enter into an agreement with creditors and agree to pay a sum of money to them every month until the outstanding debt is rectified. When you are submitting these payments to the companies that you owe, you are making a positive change on your credit report.

At the beginning of filing for an IVA, you will be asked to give up all current credit cards, and you will be forbidden to take out any additional unsecured loans. In forbidding you to have access to your credit cards and obtaining additional loans, your IVA Supervisor is trying to help you eliminate your debt. The Supervisor does not want you to become buried in debt that there is no way to rectify the situation.

You will then begin making payments to the creditors that you owe. The payments will be in your budget, and allow you to eliminate your overall debt altogether. After you have finished the process of an IVA, you will be back to the buying world as normal.

You are not “blacklisted” after filing an IVA. You are basically taking out the time to allow yourself to rectify any failed attempts with creditors. Your score will improve immensely after you have undergone the process of filing, and following through with an IVA.

Filing for an IVA allows you to get back on your feet ten times faster than struggling with your debt on your own. Who doesn’t want to be debt free, and able to regain their credit independence?