Does an IVA Affect Renting Property?

Editorial Note: These blog posts represent the opinion of DoNotPay’s Writers, but each person’s situation and circumstances vary greatly. As a result, you should make sure to do your own independent research. Because everyone is unique, our self-help tools are never guaranteed to help with any specific situation. DoNotPay is not a law firm and is not licensed to practice law. DoNotPay provides a platform for legal information and self-help.

How Does an IVA Affect Renting a Property?

Nothing can stress you more than being unable to pay off your debts. Your access to further financial assistance depends on your current creditworthiness.

Does an Individual Voluntary Arrangement? Yes, it does. Many landlords will want to know your credit history before renting their property. IVA can affect your credit for at least six years, and you cannot rent your dream home for this duration.

Waiting for six years for your IVA to be removed from your credit reference is too long. However, DoNotPay can help you rent a property while the IVA reflects on your credit report.

In addition, DoNotPay can help you deal with debt collectors and creditors such as:

Will an IVA Affect My Current Rent Agreement?

An already in place at the time of application. Your IVA is often activated in your next rent agreement. Your current landlord will not be informed about your IVA, and your rented property is also excluded from IVA.

However, some contracts may contain undisclosed regulations that impact your current rental agreement. Therefore, it is important to read your contract comprehensively to ensure there isn't any clause on insolvency on your current rental agreement.

Besides, your IVA cannot affect your living condition either. Your Insolvency Practitioner (IP) will consider your current rent contribution as part of your essential living expenses.

If you have fallen back in your rent arrears, you can be allowed to set aside some amount each month to settle the debt. Still, this is a separate agreement from your IVA payments.

Can I Move to Another Rented Property Whilst in an IVA?

It may be possible to move to another rented property when you have an active IVA. However, this is easier said than done because your options reduce significantly. An IVA is included in your credit file, which can severely impact your credit rating in many cases.

Your prospective landlord may ask for credit checks before entering into a rent agreement. As a result, the landlord may consider your credit file risk for investing, and you may struggle to rent another property.

In addition, if your current landlord requests a credit file during your contract renewal, it may raise concerns, forcing you to vacate the premises.

If you secure a rental property while in IVA, you still have to face substantial challenges. First, you must consider whether you can afford to move properties while in IVA. In addition, you will need to have saved for the rent deposit and pay for the first month's rent upfront.

Will an IVA Obstruct Me From Renting a Home in the Future?

An IVA can affect your credit rating for six years and above. During this period, renting a property can be difficult for you. Even if your IVA agreement ends after four years (or even earlier), it will stay in your credit record until the period expires. However, if your IVA takes more than six years, it will be removed from your credit file when the six-year period ends.

Unfortunately, the mention of an IVA on your credit file will likely affect your chance of renting a property even if it has ended.

Improve your chance of securing a rental property.You will need to spend 6-12 months rebuilding your credit rating.
Avoid the frustrations of being let down by landlords.It is important to postpone looking for a rented space until the mention of your IVA is removed from your credit report.

What Other Restrictions Will I Face While on an IVA?

While you are on an IVA, you have limited freedom regarding your financial capacities, and there is little you can do about it. Here are other restrictions you can face while in an IVA:

  • You cannot take out new debts amounting to 500 pounds and over
  • Your name, address, and date of birth will appear on the Individual Insolvency Register (IIR)
  • It may affect your employment, especially if you are a solicitor or accountant
  • Your additional assets and income may be used to pay on your IVA
  • You must maintain the budget agreed with your IP
  • The IVA will be visible on your credit report for at least six years

Being turned down by landlords, creditors, and employers can be tedious and frustrating. Without success, you don't have time and energy to move from one landlord to another or look for employment in organizations.

Clean Up Your Credit with DoNotPay

It can be very annoying and demoralizing to be denied renting properties and employment positions because of an IVA on your credit file. DoNotPay can help you look for rental property and improve your chance of renting your dream property with IVA showing on your credit report.

All you have to do is:

  1. Search "debt collection" on DoNotPay.

  2. Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.

  3. Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to a professional trade association.

What Else Can DoNotPay Do?

DoNotPay can also help you solve other multiple problems, including:

  1. Pay bills online
  2. Small claim court
  3. Increase credit limit
  4. Help with bills
  5. How to cancel
  6. Free trials
  7. Missing money
  8. File a complaint
  9. Provident loans refund

If you want to rent a property, but the IVA mention still reflects on your credit report, contact us today for assistance in securing your dream home.

Want your issue solved now?