is an IVA possible with secured loan on property?

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lynn_m

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Post by lynn_m » Tue Jul 15, 2008 8:37 pm
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Would you be able to have a IVA if you had a secured loan on your property? And if so, how would this work? Would the home be at risk?
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Lisa2009

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Post by Lisa2009 » Tue Jul 15, 2008 8:38 pm
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Secured loans can not be included in an IVA.
http://mrsskint.blogs.iva.co.uk/ 'Our Story'


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MelanieGiles

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Post by MelanieGiles » Tue Jul 15, 2008 8:47 pm
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Hi lynn

Yes it is possible to have an IVA if you have a secured loan, but as Mrs Skint says that loan would not be included in the arrangement and you would need to continue to make the loan payments to avoid your property being affected. Do you have other, unsecured, debts?
Regards, Melanie Giles, Insolvency Practitioner
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Lisa2009

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Post by Lisa2009 » Tue Jul 15, 2008 8:48 pm
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Sorry i really didnt answer that very well.
http://mrsskint.blogs.iva.co.uk/ 'Our Story'


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pbeck

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Post by pbeck » Tue Jul 15, 2008 8:48 pm
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Yes, it is still possible, actually it might make it easier than you would think, the reason is that under the standard IVA protocol you would be required to remortgage your home up to 85% of its value towards the end of the IVA. Most secured loans would typically already bring your secured debt up to over 85% of the property's value so unless the property's value were to increase during the IVA term to create more equity you might get away without having to remortgage it at all.
Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist since 1996.
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kallis3

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Post by kallis3 » Tue Jul 15, 2008 9:18 pm
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I have a secured loan as well as my IVA, and am managing to make all my payments.

Don't think it will help me with my 4th year clause though as it will be almost finished by then!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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