If you have equity in your home, you may be able to obtain an ecured loan through an IVA. Unfortunately, many creditors will not approve your IVA application if your debts exceed the value of your property. Therefore, you may have to refinance the loan to get the amount you need. This can be expensive and can cause problems down the line if you cannot pay it back.
While an IVA can release you from your debt, it does come with some risks. For example, most creditors will not accept an IVA for debts that exceed the value of your home, and you may have to refinance the loan in order to release the equity. You should also keep in mind that you will have to pay fees to your IP if the IVA is approved.
The good news is that you can include unsecured debts in an IVA as well. Secured loans, on the other hand, are considered a priority within the IVA budget. These debts are usually in addition to a mortgage. If you are able to qualify for a secured loan, you can avoid bankruptcy and repossession. If you’re facing financial difficulties and need a way out of debt, an IVA may be the best option for you.
The good news is that your creditors can still take legal action against you if you don’t pay up. While your creditors can’t repossess your property, they can still use the full force of the Consumer Credit Act to take action against you. In some cases, your IVA Nominee can apply for an Interim Order to stop all legal action until you meet with your creditors.
When considering a debt consolidation loan, it is best to consult with your secured lender about your options. They will be able to help you choose the best option for your financial situation. Remember, your payments will be based on what you can afford after taking care of your essential costs. The sooner you take action, the better chance you have of staying out of debt for good.
You should also be transparent about your financial situation and your plans. When you’re applying for an IVA early settlement loan, make sure you are completely honest and upfront with your IP. During the IVA, you will have to demonstrate that you qualify for the IVA and that you’re willing to meet the terms of your repayment plan. Once you’ve met these criteria, you should contact your IP and start the process of early settlement.
An IVA can be a tough time for borrowers with poor credit. However, there are specialised lenders who can help. These lenders have access to the whole market and can help you get the money you need without destroying your credit.