The IVA Register is part of the Individual Insolvency Register in the UK, which records various types of insolvency, including DROs and bankruptcy. It is a public register that can be searched by anyone, including lenders, landlords and employers.
In order to understand the IVA Register, you first need to know what an IVA is. An Individual Voluntary Arrangement (IVA) in the UK is what’s known as an insolvency arrangement, or a debt relief arrangement, between an individual and his or her creditors. The arrangement allows them to repay their debts over an extended period of time – in instalments – without going through bankruptcy and being declared officially bankrupt.
What Is An IVA Register?
An IVA register is a section of your credit history which lists any previous individual voluntary arrangements that you and other debtors have entered into. Some people choose to set up an IVA in order to help them pay off their debts by consolidating some or all of their outstanding loans into one affordable monthly instalment plan. Others may enter one after they have fallen behind on loan payments and are deemed to be in serious debt.
How do I know if I need an IVA?
If you think you may be at risk of entering into bankruptcy, you need to contact an insolvency practitioner (IP). Any registered adviser can help you start an IVA. They’ll ask about your income and expenses, based on which they’ll be able to give you a rough idea of whether or not an IVA will work for you. They can also advise on finding a suitable lawyer to represent your case in court when required.
If debts increase at your end, then it may become necessary to use some legal procedures to help you restructure your debts so that they become manageable. One such legal procedure and option is the IVA. You may need an IVA if you are in serious financial debt and want to pay it on a more realistic schedule. You would also not want that creditors take any legal action against you for the duration of the agreement.
IVA is an insolvency solution for those people who cannot repay their debts, try as they might. But you also have to keep in mind that the IVA insolvency solution, like other such solutions, has long-term consequences. They can negatively impact your financial strength and even your ability to access credit. So you should not take it lightly that you are planning to enter an IVA register in the UK. If you can find other options, do explore those options too.
However, once you have taken the decision on IVA, then you should know that IVAs are available in England, Wales and Northern Ireland, but not in Scotland. The Scottish equivalent of IVAs is the Protected Trust Deeds.
What happens when you enter an IVA register
Once you enter into an IVA, the details get recorded on the Insolvency Register. This register contains information about all current individual voluntary arrangements. It also has information about current bankruptcies and debt relief orders. It includes information on any bankruptcies and DROs that have been discharged within the last three months. It is important to note that the details about your IVA will stay on the IVA register in the UK for three months after your IVA has been completed or terminated.
Any information available in the IVA register may be used by lenders to check if any loan applicant has any trouble repaying loans. Credit reference agencies will also check the IVA register to understand the individual’s credit history. All this information will get recorded on the loan applicant’s credit report and may negatively impact their credit score.
Once you and your creditors have agreed to your IVA plan, your details are then placed on the IVA register. These details will remain there till the term of your arrangement is completed. It can take around three months to have your details removed from the Insolvency Register. Whoever is your IVA supervisor will request on your behalf that your details be removed.
What information will appear on the register?
If you enter into an IVA, here’s the kind of personal information that will appear on the Individual Insolvency Register:
- Your name
- Your last known address
- Your date of birth
- Your gender
- The date the IVA was approved
The Insolvency Service is obliged by law to maintain the IVA register so that there is a clear record of individuals that are insolvent.
The IVA details remain on the Insolvency Register for three months after the IVA has been completed, terminated or even revoked. Termination of an IVA happens when the individual does not keep up with the repayment schedule, and then the legal protection offered by the agreement ends.
Who can view the Insolvency Register?
The insolvency register can be searched online and is accessible and open to anyone. But mainly, the insolvency register is used by creditors who are searching for credit applicants or credit reference agencies so that they can update their records.
All those who are searching for a particular person on the Insolvency Register simply have to type a surname and forename to search the system. This query brings up a list for them that they can check and analyse.
What details does the Insolvency Register Have
When we mention the Insolvency register, then it includes the IVA register in the UK. This register contains the following details:
- Individual Voluntary Arrangements
- Fast-Track Voluntary Arrangements
- Bankruptcy Orders (current or those that have ended in the last three months)
- Bankruptcy Restriction Orders or Undertakings
- Debt Relief Orders (current or those that have ended in the last three months)
- Debt Relief Restriction Orders or Undertakings
The IVA register can be searched either online at the Insolvency Service website or at your local official receiver’s office.
However, the insolvency register does not include details of:
- Disqualified directors
- Company insolvencies
- Insolvencies in Scotland or Northern Ireland
- Annulled or rescinded Bankruptcy Orders
Why is the IVA register open to the public?
The information on the IVA register is used for multiple purposes. It is an access point for creditors who want some information, for employment screening, for debt recovery and for credit reference purposes.
Your date of birth is also mentioned on the register listing. This ensures that those searching have the right individual to avoid any identity errors occurring.
If your IVA is completed and your details remain on the register, you can get in touch with the Insolvency Service and report any errors. You need to check and ensure that everything is correct to avoid any future issues when you take out credit in the future.
An IVA is a good solution for those debtors who need assistance in managing their unmanageable debts. As long as you understand the implications and what is expected of you when you enter an IVA, then things will work out fine for you.
