09 Mar 2015

A question about : Defaults AFTER IVA was started

I have just check my credit report online and glad I did.

My IVA was approved on the 1st June 2012, and is still showing as being active.

Halifax, put a default on my credit report dated the 11th July 2012.

Max Recovery also put a default on my credit reported dated the 1st June 2012, the same day as the IVA approval.

Can they actually do this because I had not defaulted on payments hence why the IVA was in place?

Best answers:

  • By definition, placing an account into an IVA is a default.
  • You entered an IVA. That is a default, so no.
    Any default date should be no later than the start date of the IVA, so the Halifax one may need a minor correction to a month earlier, but the fact of the default is factual.
  • The IVA is currently in the process of failing and will soon be closed down.
    In the meantime the debts mostly with Halifax are being looked at by the FOS.
    In the meantime, what can I do to increase my credit score?
  • Time and some positive data if you can get some basic credit is the only way..
  • I wont be able to get any credit because my credit rating is shot to piece because of the IVA!!
  • Sorry am I missing something here??
    You enter into an IVA and don't think you should have a credit record to reflect this?
  • I have to ask, why are you seemingly interested in fresh credit, or the potential availability of fresh credit, you know you cannot afford to repay? And aren't you wanting to apply for a DRO as you cannot afford to repay what you already have? A lot of your income is DLA based if memory serves, and you surely won't fall into the trap of earmarking that for debt repayments again?
    Far better, in my view at least, to let your IVA take it's course to close, which may be longer than you think unfortunately, then wait for your DRO and it's moratorium period to pass, whilst also using that period to start saving a little each week or month.
  • Thanks for the advice.
    I think I will wait ask you say for the IVA to close, and then apply for a DRO.
    Its a joke with Debt Free Direct though its taking longer then expected.