If you’re looking to get a loan after an IVA, you may wonder whether a secured loan will work for you. This type of loan can be particularly helpful if you have no equity in your home. In addition, it will help you rebuild your credit score. A reputable lender will generally be willing to lend you up to 85% of the market value of your home. However, not all lenders will be willing to do this, and you will need to talk to your IP to find out how much you can borrow.
The biggest drawback to an ecured loan IVA is that you will have to ask for your creditors’ approval. If you’re not able to get this approval, you may not qualify for the loan. The IVA process requires that seventy-five percent of your creditors agree to the terms of the repayment plan. The creditors will often haggle over the terms of the repayment plan and may ask for more money than you have available, include some of your assets, or extend the repayment period.
An IVA can make it harder to access loans or other forms of credit. In order for the IVA to work, you must have the approval of seventy-five percent of your creditors ‘by value’. If you owe more than seventy-five percent of your debt, the creditors who have the most assets may not be so keen on the IVA proposal. They may haggle over terms and ask you to borrow more money or include assets in your repayment plan. You will also need to pay a redemption penalty.
Despite the disadvantages, an IVA can be included in an individual voluntary arrangement. While lenders have no legal obligation to agree to an IVA, they will usually only accept it if they can recover some of their outlay by repossessing your property. However, if you have a debt of less than PS10,000, you are unlikely to be accepted for an IVA unless you have the property to give up.
Although an IVA is a legal process, it can also be beneficial for you in the long run. A secured loan is a great option if you are struggling to make your monthly payments. If you remortgage your home, you may be able to raise more than PS500 to pay off the remainder of your debt. However, if your home is worth more than PS500, you must work with your IP to get the loan approved.
An individual voluntary arrangement is a good option for individuals who have fallen behind on their debt repayments. While your creditors do not have to accept an IVA, it is a good option if your credit rating is poor. You will receive less money back than you owe, but you can use the time to organize your finances and make your repayments more manageable. However, it should not be your only option for debt relief.