Once you enter into an IVA your credit file will be affected.
The Insolvency Service, which is the Government’s department that deals with insolvencies, including IVAs, will contact the Credit Reference Agencies (CRAs). They will then add a note on your credit file stating that you are in an IVA.
The IVA is then placed on the Insolvency Service’s IVA register, where it will remain until it is successfully completed.
The credit file, however, will have the IVA recorded on it for a period of six years, after which time the file should be updated and the note about the IVA should be removed.
It is also worth noting that there is no guarantee that it will be removed from your credit file automatically, and you should therefore send copies of your ‘certificate of completion’ to each of the CRAs to ensure that they do remove it from your file after 6 years.
Read our free IVA guide “How will an IVA affect My Credit Rating” to find out more.
Or call 0800 088 7503 to ask one of our IVA advisers any IVA question.
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