I think debt agreements can be dangerous and caution should be required when a debt agreement is considered an available option. In order for a solution to be considered to solve your financial problems, you need to ensure that it will eliminate or reduce the financial and consequential stress that you and your family feel at an acceptable level. I have doubts about debt agreements, and they are the latter; An IVA should not affect your current lease, but we advise you to review your contract in case there is a clause stating that you cannot be insolvent while you are staying at that address. However, your landlord is not informed of your agreement and accommodation is not considered part of the IVA. These organizations keep your credit report. It is a report containing personal data, credit applications, credit providers, heavy debts and credit defaults, commercial loans and information on bankruptcies and defaults. An IVA will affect your creditworthiness for at least six years, so you may have difficulty renting a home during this time. Your IVA will be removed from your credit reference file six years after your IVA is approved, or in case your IVA lasts more than six years when completed. You can then start rebuilding your creditworthiness and you should have no other problems renting a house. Your credit score is assigned at an IVA.
This means that if your future landlord requires you to have credit checks before signing a lease, you may have difficulty renting another property during your IVA. This may also be the case for the renewal of a lease – if you have to go through the credit verification process during an extension, your landlord can raise concerns. I mentioned on this website that if you are considering solutions to solve financial problems, you need to make sure that the financial problems are resolved and are not too quiet. When people are faced with intractable financial debts, they are stressed, can suffer from health problems, emotions, relationships and children. Consideration of how to solve a financial problem must be careful, as if the solution involved the continuation of financial stress, that the downward spiral was not stopped and that there could be significant social consequences for the person with the financial problems and the family of that person.