{"id":4235,"date":"2014-09-24T12:27:36","date_gmt":"2014-09-24T11:27:36","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=4235"},"modified":"2020-10-20T10:42:43","modified_gmt":"2020-10-20T09:42:43","slug":"credit-if-in-an-iva","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/credit-if-in-an-iva\/","title":{"rendered":"Can I get credit if in an IVA?"},"content":{"rendered":"\n

If you have debts that are no longer manageable, and are considering measures such as an IVA to avoid bankruptcy<\/strong>,\n then you probably need to think twice before considering getting \nfurther borrowing before your existing debts have been taken care of.<\/p>\n\n\n\n\n\n\n\n

No credit during IVA period<\/h2>\n\n\n\n

IVAs are truly effective measure when it comes to getting \nunmanageable debt under control. If you do get an IVA, you will be \nunable to get further credit while the IVA period is elapsing. The \nperiod is decided on when you initially propose the IVA, and your \nInsolvency Practitioner will help you to work this out.<\/p>\n\n\n\n

Settle existing debts<\/h2>\n\n\n\n
\"No<\/figure><\/div>\n\n\n\n

What you are essentially doing is offering your creditors an alternative payment schedule to the one you currently have. This will typically involve paying back only a portion of what you owe, but providing the IVA is successful your debts will effectively be settled at the end of it.<\/p>\n\n\n\n

Free to seek credit after IVA<\/h2>\n\n\n\n

Once the IVA period has elapsed, and providing you managed to keep up\n with the payments throughout, you will then be able to seek credit \nagain. The damage done to your credit rating is far less serious with an\n IVA than in bankruptcy, and so your credit prospects in the future will\n generally be encouraging. Just managing to keep to the IVA and get to \nthe end of it is a good sign in terms of your debt management, and so \ncreditors can see that you are able to handle debts once again.<\/p>\n\n\n\n

Although it may seem restrictive that you cannot get credit while you\n have an IVA in place, in practice this makes it far more likely that \nthe IVA will be a success. If your debts are currently unmanageable, \nthen the best way for you to clear them is going to be if you do not \ngain any more borrowing until the current troublesome debts have been \ndealt with.<\/p>\n\n\n\n

The purpose of an IVA is to keep you from becoming bankrupt while \ndealing with your borrowing in a manageable way, and so it would be \ncounter-productive if you were able to get into even more debt while the\n IVA was proceeding. The payments that you make towards your IVA are \nsupposed to be as much as you can manage while still enjoying a decent \nstandard of living, and so you are unlikely to have sufficient funds \nleft over for paying towards additional debts.<\/p>\n\n\n\n

IVAs are not just a way to avoid bankruptcy and to deal with debts \nyou can\u2019t manage, they are also designed to help people to work towards a\n more stable financial future, by addressing their borrowing problems \nand learning to manage debt effectively.<\/p>\n","protected":false},"excerpt":{"rendered":"

If you have debts that are no longer manageable, and are considering an IVA to avoid bankruptcy, then you probably need to think twice before considering getting further borrowing<\/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":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-4235","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\/4235","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=4235"}],"version-history":[{"count":3,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/4235\/revisions"}],"predecessor-version":[{"id":13537,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/4235\/revisions\/13537"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=4235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=4235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=4235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}