IVA : Can I Apply For Credit In An IVA?

The objective of an Individual Voluntary Arrangement (IVA) is to help people with severe debt problems.

The basis of an Individual Voluntary Arrangement (IVA) is to re-educate people away from the culture of credit. One of the corner stones of an Individual Voluntary Arrangement (IVA) that no more credit will be taken out during the period of the Individual Voluntary Arrangement (IVA).

This is borne out in the Individual Voluntary Arrangement (IVA) proposal which is quite specific about credit in an Individual Voluntary Arrangement (IVA).

If you decide to apply for credit when in an Individual Voluntary Arrangement (IVA) it would be highly unlikely that it would be granted. This is because your Individual Voluntary Arrangement (IVA) is registered on the Insolvency Register which is referenced by all the major credit reference companies.

If in the unlikely event that you slip through the net and you are successful in obtaining credit you will in fact put your Individual Voluntary Arrangement (IVA) at risk. Your Individual Voluntary Arrangement (IVA) proposal is a binding agreement and it states that if your Individual Voluntary Arrangement (IVA) fails your supervisor can make you bankrupt. So by trying to obtain credit you run the risk of failing your Individual Voluntary Arrangement (IVA) and falling foul of the bankruptcy laws.

Follow this link for more information about learning to live without credit. You could also visit myIVA-Adviser.com to read are articles specialising in Individual Voluntary Arrangement (IVA) advice or call one of our advisers on 0800 088 7503 for free information without obligation.