If you’ve filed for bankruptcy and need a loan, an ecured loan IVA may be a viable option. The IVA process requires the approval of at least 75% of your creditors, or ‘by value’ (the total amount you owe). For your IVA to be accepted, you must have at least 75% of your debt voted by creditors. Your creditors may haggle over the terms of your IVA, asking for more money, inclusion of assets, or longer repayment period.

Under an IVA, you can include as many as eighty percent of your total debts. Your priority debts – those with the highest interest rates and the highest monthly payments – are excluded from the IVA. Unsecured debts, on the other hand, are not considered priority debts, and falling behind will not result in legal action or home repossession. However, falling behind on unsecured debts can still cause your credit rating to suffer and you may have to pay extra fees for your credit report.

The benefits of an IVA are well worth considering. It will help you avoid bankruptcy and its associated costs. The process requires you to meet with your creditors to present your case and get their approval. An IVA is a viable option for many people in financial difficulty. The process may be the best option if you have a lot of unsecured debt. If you’re considering an Individual Voluntary Arrangement as an option for your debt, remember that it’s the best alternative to bankruptcy.

If you’ve been refused a loan by a traditional lender, you may be able to apply for one through a specialised lender with whole market access. It may be possible to settle your IVA early and thereby avoid the restrictions of an IVA. Early settlement may help you rebuild your credit score. However, you should still consult with your IP before making a decision. If you fail to do so, you may end up bankrupt and lose your home.

Another benefit of an IVA is the ability to make overpayments and take payment holidays. Using a secured loan can be a very advantageous option for self-employed people. With an IVA, you’ll be given a monthly allowance to pay off your secured loans. You can use this money for other needs, such as paying off the mortgage, making a down payment, or even starting a new business.

One way to reduce your debt is to release the equity in your home. IVA creditors will expect you to release some of your equity before you file for bankruptcy, but you don’t have to sell your home. They will not want you to take on a loan or mortgage that you can’t afford. This way, you can keep your home while you’re in the process of a bankruptcy. However, if you’re a tenant, you should check your tenancy agreement. If your rent payments are current, the landlord will not want to end your tenancy.

In addition to protecting your essential assets, an IVA allows you to keep your home. While bankruptcy hands your home over to an official receiver, an IVA allows you to keep the home. By contrast, bankruptcy passes ownership of your home to an official receiver and forces you to release equity in your home to pay creditors. The result could be the sale of your home. Furthermore, informal payment arrangements do not provide any protection from legal action.