# How IVA Affects Your Credit Score?

Do you know that once you enter an IVA agreement, it keeps on showing on your credit file for up to six years? While the IVA agreement doesn’t have adverse effects on your credit rating, it can still make you look financially unwell. Keeping that in mind, following we are describing how IVA affects you!

### How IVA Affects You?

The Individual Voluntary Arrangement is an agreement which legally binds you and your creditor it helps you pay back your debt at a better interest rate. It affects your financial outlook before you take on an IVA, it's better if you get some professional advice related to the restrictions and obligations you will have to follow.

You need to understand the fact that not everyone can qualify for IVA. These are ideal for people who don’t have a proper source of income. People who have a lump sum to pay for their debts can qualify for IVA.

You need to mind the fact that not everyone can get an IVA. Secured debts can be paid outside of your agreement.

### Restrictions

It's obvious if you are applying for an agreement, there will be some restriction imposed on you. Following, we will discuss these restrictions:

• Your credit will get the effect for the next six years; this will start from the date you sign your agreement
• You will need to budget your expenses for the full term of IVA, which can go up to 5-6 years
• In case you miss a payment, The IVA will get extended to make up for the loss
• IVA can affect your employment, so contact your HR before you sign the agreement
• IVA can affect your hire purchase agreement in case there is an issue
• You have to declare the additional assets you receive after signing up the IVA
• If you have any side income, you must mention it in your IVA. You can use some of it to payback IVA earlier
• The IVA is recorded on Insolvency Register. This very register is maintained by insolvency Service; it is available for viewing by the general public. It contains details of current IVAS

### How It Affects Your Household?

If you can't make a payment to your IVA, then you must inform your IP first hand. The IVA agreement grants you a small break if there is an issue. It also allows you to alter your payments within the same timeframe.

But if you need a long break, then you better get IVA Debt Help.

You break your IVA agreement if you don’t remain open to him about these issues. Any payment you miss is added to the end of IVA. This suggests that missing payments may elongate the time it will take for your IVA to complete.

When you enter the IVA agreement, you better inform the IP about your assets. They won't necessarily include them in the IVA, but these asses can make the terms favorable or unfavorable for you. Whatever you do, be straightforward.

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