If you are on an IVA (Individual Voluntary Arrangement), and are looking to borrow some money, you’ll need to contact your IP (Insolvency Practitioner). Your IP is the professional who oversees your IVA and they’ll need to give their permission before you can apply for credit while your IVA is in progress.

If they agree, you will still have your credit report checked by your potential lender (just as you would any time you want to borrow).

Your potential lender will check your credit report so they can get an idea of your financial history/habits, and see whether or not they are likely to get their money back if they lend it to you.

When you have a credit check on an IVA, your potential lenders will be able to see that you have failed to keep up with repayments on your old debts, and they will also be able to see that you have entered an IVA as a result of this. In an IVA, you’ll probably have to ask your IP (Insolvency Practitioner) before you apply for any credit over a certain amount.

An IVA will have a significant adverse effect on your credit rating – it will stay there for six years from the time it starts and will affect the cost and/or availability of credit for this time.