{"id":1624,"date":"2013-12-18T11:23:38","date_gmt":"2013-12-18T11:23:38","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=1624"},"modified":"2019-02-01T11:59:25","modified_gmt":"2019-02-01T11:59:25","slug":"using-credit-in-an-iva","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/using-credit-in-an-iva\/","title":{"rendered":"Using Credit in an IVA"},"content":{"rendered":"\n<p>To enter into an IVA, you must be personally insolvent. This is a  requirement of the 1986 Insolvency Act. Obtain advice from an Insolvency  Practitioner (IP) who will be able to confirm to you whether you are  insolvent or solvent. <\/p>\n\n\n\n<!--more-->\n\n\n\n<p>If you are indeed  insolvent you should investigate and consider the full range of  financial solutions available. You will be able to obtain advice on each  of these solutions from your IP. The IP will explore with you all of  the possible financial solutions. The three main options available to  you are Bankruptcy, Debt Management or an Individual Voluntary  Arrangement (IVA). If you decide to offer an IVA to your creditors, your  IP will insist that you immediately stop using all forms of credit  including credit cards, while your IVA proposal is being prepared. The  usual advice is to cut up all your credit cards or otherwise destroy  them. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/02\/Fotolia_3952205_S.jpg\" alt=\"\" class=\"wp-image-1629\" width=\"351\" height=\"241\" srcset=\"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/02\/Fotolia_3952205_S.jpg 836w, https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/02\/Fotolia_3952205_S-300x206.jpg 300w, https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/02\/Fotolia_3952205_S-768x527.jpg 768w\" sizes=\"auto, (max-width: 351px) 100vw, 351px\" \/><\/figure><\/div>\n\n\n\n<p>If your IVA is approved by your creditors, you will not be permitted \nto obtain any new credit cards during the term of your IVA, which is \nusually for five years. Any breach of this requirement will almost \ncertainly lead to the failure of your IVA. The exception is that with \nthe permission of your creditors and of the supervisor of your IVA, who \nwill also be an IP, you may be permitted to obtain a limited amount of \ncredit in regard to payment for utilities for example. However, it would\n be most unusual for you to obtain permission to have and use a regular \ncredit card or store card.<\/p>\n\n\n\n<p>On the successful completion of your IVA, you will be issued with a \nCertificate of Completion. This will verify that you have complied with \nthe terms of your IVA to the satisfaction of your creditors and of your \nsupervisor. You will bear no further liability for your unsecured debts.\n At this point you will be free to seek credit. You may apply for a \ncredit card again. In your application for a credit card, you will be \nexpected to disclose that you were in an IVA. Card providers also \nnormally run a credit check on applicants and will confirm that you have\n been in an IVA. This may have a bearing on whether they decide to \nprovide you with credit card facilities or not. On a positive note, \ncreditors will take into account that you dealt with your financial \ndifficulties in a responsible way by undertaking, maintaining and \nsuccessfully completing an IVA.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>To enter into an IVA, you must be personally insolvent. This is a requirement of the 1986 Insolvency Act. Obtain advice from an Insolvency Practitioner (IP) who will be able to confirm to you whether you are insolvent or solvent.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-1624","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/1624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=1624"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/1624\/revisions"}],"predecessor-version":[{"id":1630,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/1624\/revisions\/1630"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=1624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=1624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=1624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}