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Your credit rating can have an effect on someone else's if you have a 'financial connection' with them - but just living with them doesn't mean you're 'connected'.
An IVA can be the best way to tackle serious debt problems. If it's right for you, it can bring your monthly payments down to an affordable level, protect you from legal action by your lenders and write off your remaining unsecured debt once it comes to a successful conclusion.
However, it's no easy way out of debt. It does come with its downsides - like the effect it'll have on your credit rating for six years.
But what about your family? If you enter an IVA, will it affect their credit rating?
In general, no
In most cases, your IVA won't affect your family's credit rating. It's your IVA, not theirs.
But you do need to be aware of these points.
If you have a joint mortgage
Homeowners may have to release some equity from their property while they're in an IVA. If you have a joint mortgage with your partner, your IVA will be a factor if you want to remortgage while your IVA's ongoing - or while it's still on your credit record.
Your mortgage is a complicated thing, and so is the way an IVA can affect it. Every case is different, so you really need a one-to-one talk with an expert, who can explain where you stand.
If you have shared finances
If you have a financial connection with someone in your family, a lender might well look at your credit rating when your relative applies for credit of some kind.
Joint mortgages aren't the only kind of connection - it could be a shared bank account, for example, or a loan you're both responsible for.
If other people are registered to vote at your address, a lender might see your name when they apply for credit. If you don't actually have any financial connection with them, they can ask the credit reference agencies to remove your information from their report.
Talk to an expert
It's better to be safe than sorry. If you struggling with debt should seek professional debt advice as soon as posible. Just call us on 0161 605 4810 - or fill in the form on this page and one of our experts will call you.
by Christine WalshBack to blog home