Is It Possible to Rent with an IVA?
When you want to set up an individual voluntary arrangement (IVA) to clear unsecured debts, it’s vital to understand how this form of insolvency may affect your living arrangements. ‘Can I rent with an IVA?’ is a question clients often ask our licensed UK insolvency practitioners.
With that in mind, we’ve created the following guide to renting with an IVA. It covers what to expect if you’re currently renting a residential property, as well as how an IVA may affect your ability to rent a different property if you want to move home. The information will also be useful if you’re not renting right now but hope to do so in the future.
In other words, we’ll help you to answer the important question ‘can I rent with an IVA?’, as well as other renting with an IVA questions.
Can I Still Rent a Property If I Have an IVA?
You’ll be relieved to hear that renting with an IVA is permitted – IVAs aren’t just for homeowners. This fair, affordable debt repayment plan takes your essential expenses into account, so it’ll leave you with enough money to pay your rent.
An individual voluntary arrangement is unlikely to affect your current tenancy agreement unless your landlord has stipulated that you can’t be insolvent while living at the property. So do check the small print when considering renting with an IVA.
Any rent arrears for your current home can’t be included in an IVA, unlike rent arrears for previous homes. But when our insolvency practitioners create a robust IVA proposal for the attention of creditors, they can include overdue rent for your present residence in your essential expenses.
How Does an IVA Affect Renting a Property?
‘Can I rent with an IVA if I want to move home?’ is a common question. In a nutshell, it is possible to get a tenancy agreement for a different property, but you may find it harder than usual.
Landlords will see you have an IVA if they run credit checks. IVAs appear on credit reports for six years and damage credit ratings, so you may fail some checks. However, there are landlords who welcome tenants renting with an IVA, as they know IVA repayments don’t swallow up money earmarked for rent.
Improve your chances of moving to another rented home by:
- Asking someone with a good credit history to act as guarantor or rent with you
- Providing references from previous landlords
- Paying a larger deposit
- Renting from a council or housing association – they’re more understanding than private landlords
Individual voluntary arrangements usually last five years. Then ‘can I rent with an IVA?’ becomes ‘can I rent after an IVA?’ Again, it’s perfectly possible – but it’s advisable to take stock and spend up to a year rebuilding your credit rating (for example, by using a rent-reporting service to record rent payments in your credit report) before looking for a new home to rent.
Expert Advice about Renting with an IVA
Professional yet approachable, our expert insolvency practitioners will help you to understand the implications of renting with an IVA. We can also arrange and manage your IVA.