The IVA is a type of debt management plan. It is a legal agreement wherein a person will submit a proposal to their creditors in order to pay off their debt. This proposal is then voted on by the creditors and then becomes binding on all of them. Normally, the repayment term of an IVA is 60 or 72 months. However, there is an option known as lump sum IVA which requires the person to make a single large payment at the end of the scheme.

If you are struggling to make repayments on unsecured loans, you may want to consider a secured loan IVA. These loans have agreed terms between the borrower and the creditor. Normally, secured loans have a much lower interest rate than unsecured loans. For instance, if you are trying to pay back your mortgage, you may want to consider a secured loan IVA as a solution.

Before deciding to go for an IVA, it is important to get debt advice from a qualified advisor. The right one for you will depend on your debt levels and your income and expenditure. An Insolvency Practitioner will examine your income and expenses and devise a payment plan based on your affordability. You will have to pay a fee to the Insolvency Practitioner, but the fee is built into your monthly payments.

Taking out a secured loan is often cheaper than a remortgage, and the security provided to the lender reduces the risk of default. In addition, the secured loan is treated as priority debts, meaning that the lender has the right to use the asset to recover the loan. In addition, an IVA will allow you to keep a specific amount of money for each month’s repayment.

You can include as many debts as you want in an Individual Voluntary Arrangement. However, this option is most suitable for people with three or more debts with more than two lenders. If you have more than three loans, you should be able to repay them. If you have a lump sum, you can choose to include it in the IVA as well. It is important that you can afford to make repayments on all of these debts.

An IVA will affect your credit rating. Your creditors will view your IVA on your credit report for up to six years. This will lower your credit rating, and it may prevent you from getting a loan or mortgage in the future. It can also prevent you from opening a bank account. Fortunately, there are specialised lenders out there that specialise in lending to people with bad credit. You can use these specialised lenders to pay off your debts, and reclaim your credit rating.

Secured loan IVAs are different from unsecured loan IVAs, as a secured loan IVA will include all of your debt to all of your creditors. You can make changes to the amount you owe your creditors, but you can’t change the terms of your loan unless your secured creditor agrees to it. A fully secured loan IVA is unlikely to include a dividend.