Considering an ecured loan IVA? There are several advantages to this debt management option. Here are a few of these advantages. You might want to consider this option if you’re currently in the market. Read on to learn more. Listed below are some advantages of ecured loans. The key to a successful IVA is communication with your creditor. The process can take less than a minute.
IVA for ecured loans helps you maintain your property and can help you restore your credit rating. While the debtor won’t be able to keep their home or other property, they’ll be able to make payments on the plan until they reach a certain income level. If you have massive debts and need to rebuild your credit rating, an ecured loan IVA may be the best option. If you want to save your home, ecured loans are a great option.
In addition, an IVA can help you avoid bankruptcy. Once the IVA is completed, your creditors are required to pay you a certain amount of money each month to avoid repossession of your property. In case you cannot pay your debts, they can pursue legal action to recoup their losses or even file bankruptcy against you. In a secured loan IVA, you can apply for an Interim Order which prevents creditors from taking any legal action until your creditors’ meeting.
The main disadvantage of an ecured loan IVA is that it doesn’t last for more than six years. However, it is still a smart option if you are unable to make your regular payments. This type of loan also provides a better interest rate than an unsecured loan, which makes it a better option if you need to use your funds for other expenses. You can also free up the equity in your home by opting for an ecured loan IVA.