If you have enormous debts and are considering bankruptcy, an ecured loan IVA may be the right option for you. This type of debt relief option requires your creditors to agree to a repayment plan, usually 75% of them. Otherwise, your creditors may try to seize your assets or demand more money than you can pay. Nevertheless, it is possible to get this type of debt relief and rebuild your credit rating. But before you go ahead with this type of debt relief option, you must understand the details of the ecured loan IVA.
First, a secured loan is a form of debt that is secured against your property. If you default on your loan, you could lose your house. A secured loan IVA may not be the best option for you if your debts total PS10,000 or more. But if you don’t owe that much, you can still opt for this type of debt relief option. However, make sure that the secured loan amount is lower than PS10,000, as the fees are high.
Next, you need to decide what type of debt you owe. This type of debt relief option is ideal for those who want to get out of debt and regain control of their financial situation. Short-term loans usually have high interest rates. They include everything from standard credit cards, stand-alone agreements, and bank overdrafts to independent store cards. You may also have personal guarantees that you gave to 3rd parties, like a family member or director on a limited company debt. Once you’ve chosen your debt relief option, you should contact a debt advisor to find out what types of assets you’ll need to repay.
If you are in debt due to an unsecured loan, an IVA may be a good option for you. It will allow you to pay the minimum amount you can afford for your monthly payments, after your basic living expenses. And because your payments will only be based on your income after your basic needs, you won’t have to sacrifice your essentials. You can start the process of debt relief by contacting a debt management professional today.
There are some restrictions to this debt relief option. A bankruptcy filing will affect your loan eligibility. You’ll need the approval of 75% of your creditors to proceed with this type of debt relief option. But, the main benefit of an IVA is that you can keep your home and continue to pay off your debts. If you live in a rented house, check your tenancy agreement to make sure you’re not being forced to leave – if your rent is current, you might have to release equity in your property.
An IVA is a good option for people who have fallen behind on their debt repayments. They’re often approved by their creditors and receive less money than they owe. An IVA is a good option for those with poor credit because it allows them to organize their finances and make repayments easier. However, IVAs are not right for everyone. They should not be your only debt relief option. So, if you have a small amount of debt, you should consider a bankruptcy-free alternative.