If you have huge debts, ecured loan IVA is a good solution. The typical IVA requires that 75% of your creditors agree to your repayment plan. If your creditors are not on board, it’s likely that you’ll have to haggle to get them to agree. For example, they may want more money than you can afford to pay back, or they may want to include assets in your repayment plan. Ecured loan IVAs are more advantageous to your creditors.
The type of debts that can be included in an IVA include vehicle and property shortfalls. Other types of unsecured debts are unpaid council tax bills, utility bills, and mobile phone bills. A personal guarantee is usually associated with debts from 3rd parties. Often an unsecured loan is not repossessed after the payments are missed. IVAs can also be used to settle overdue benefits, including overpaid tax, council tax, and utility bills.
An IVA can help you keep your home. The lender will likely want to keep tenants. Unlike a bankruptcy, an IVA can also help you protect a substantial loan. And the best part is, you can still keep your house. Many landlords don’t want to see their tenants go during the process. A secured loan can protect your home as well. The lender will not be able to take back the property.
In addition to its many benefits, ecured loan IVAs also have some drawbacks. If you can’t afford to pay back the whole loan in a year or two, you may have to consider bankruptcy. An IVA can be a good option for some people who need a short term solution to manage their debts. However, they may not be the right choice for you. A debt settlement may be more advantageous for your situation.
Although IVA creditors don’t allow people with equity to re-mortgage their homes, they can help them get a secured loan. This way, they can get the money they need to pay back the IVA. During the final year of the IVA, they may ask you to remortgage your home. The valuation is part of the IVA process and determines how much equity you have.
You can also contact the IP to see if a modified IVA is the right solution for your situation. Most IPs offer free initial consultations, but you have to be careful because some charge up-front fees before putting forward an IVA proposal. If your IVA is rejected, they can still charge you for their services – and you might lose the fee. If your circumstances change, you may have to try a different method.
In addition to eliminating the personal guarantee liability, an IVA can help a debtor to rebuild their credit rating. An IVA will prevent unsecured creditors from taking legal action against you in the future. Unlike an IVA, an Interim Order may be able to prevent legal action until the creditors’ meeting. If you fail to make payments on the loan, you may still lose your home or car. This is a great way to avoid repossession and restore your credit.