Can an IVA help with a secured loan

[tlk]

Can an IVA help with a secured loan as well as unsecured loans, credit and store cards?

[Sadsack]

Hi tlk
As far as I know, an IVA can only help with your unsecured loans - ie loans not secured against your property, credit cards and store cards. If you have a lease or HP agreement on a car, depending on the value of the car, your creditors may request a variation that the car be sold (if it is worth quite a bit).
However, as i am also pretty new to all of this and learning from others here on the forum, I would think that someone should be along shortly to give you the best advice.
Sue

[Skippy]

Hi tlk and welcome to the forum. Sadsack is right that you cannot include a secured loan in an IVA. The payment for the secured loan is usually included in your expenditure calculations.

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/

[Adam Davies]

Hi
There is a "however"to all the correct advise above in that if a house is repossesed by a lender and there are insufficient funds to repay all the secured debt then the part left over becomes "unsecured" and can form part of an IVA.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[iva experts]

Hi tkl and Welcome,

Good advice from all who posted, may I ask the amount you estimate your unsecured debt to be?

Hope this information is of use

Regards. IVA Experts

[lucy.f]

Hi, just reading this and thinking out loud really! If a house is repossessed and then anything not paid back turns into an unsecured debt, what would happen in bankruptcy? Can the shortfall to mortgage provider be 'wiped away' after being discharged?

Sorry to sound dim! This doesn't actually apply to my case but I seem to be spending so much time in this forum lately (awaiting IVA proposal etc) and I'm beginning to get nosey too!

Thanks

[Oliver]

If you were in negative equity you could give the keys back to your lender who would reposes the house and remain with an amount of unsecured debt (as mentioned by Andy above). This unsecured debt would then be written off if your bankruptcy application was successful.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[jane.l]

i am in exactly this position and just do not know what to do! I have been to CAB and hopefully they are going to help me decide when the best time to go bankrupt will be! We have left our house and are renting. The mortgage company have said to go for Voluntary Possession as it will be easier for them but not for us as then we would not be considered for council housing so we have to just wait for the house to be repossessed and then go bankrupt (I think!) it could take months and I feel ill with all the stress of it at the moment!!!!!!

[Oliver]

It sounds like you are doing the sensible thing by liaising with the CAB. Keep up the communication with them as they will give you the best advice on this matter.

Stick with it and just focus on the new start which you will be receiving.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp