If you have an IVA, you can seek financial help from a specialised lender to settle the outstanding amount. Typically, this type of loan is offered by a lending adviser with whole market access. There are a few requirements to get this type of loan, but you should be able to negotiate with the lenders.
Firstly, you must choose the right type of IVA. If you have a high debt balance, it is important to select a secured loan IVA. Secured loans usually allow you to keep your home, so they are a better option for you if your debts are too large for an unsecured loan. You can also use the equity in your home as collateral for a secured loan, which means that you can sell it to pay off your debt.
Another benefit is that a secured loan will be cheaper than a remortgage. Secured loans are priority debts under an IVA, which means that you will get a specific allowance each month. In addition, a secured loan will allow you to pay back your debts much more quickly.
Although an IVA does not affect unsecured creditors, it is still important to keep an eye on their actions. A successful IVA will protect your assets. It will also prevent them from repossessing your property. However, if you are unable to make your monthly repayments, you can use the full force of the Consumer Credit Act to declare bankruptcy.
Despite the many benefits of an IVA, it is not suitable for every debt. Generally, it is only for people with a high debt balance and more than three creditors. If you have several loans, you should make sure that you can afford to pay them all. Otherwise, you could end up in a much worse position than before.
An IVA allows you to retain some of your essential assets, including your home. Your creditors will be willing to work with you if you have a high level of equity in your home. During your IVA, you may be required to remortgage your home in the final year if you have equity in it.
Before applying for an IVA loan, you should always speak to your IP. This person will ask you why you need a loan and will discuss the options with you. You must make sure that the loan does not exceed PS500. If you fail to do this, your IVA may be terminated and you could end up facing legal action.
If you do not have sufficient assets to repay the debt, your creditors can apply to court for a charging order. This will secure the debt and prevent the lender from taking legal action against you. If you do not have enough assets to pay off all of your debts, the court may agree to repossess your property. Typically, however, this will not cover the whole outstanding amount, and you’ll need to continue making payments each month.