Is an overdraft debt incuded in an iva as well as credit cards?. Also i took out a consolidation loan that is secured on my home. Would this be incuded in an iva?
But if there is a shortfall to the secured lender - ie not enough value in the property to cover the loan, then the unsecured portion could be included with the agreement of the lender.
If a secured loan has been taken against the property and the value has dropped below the mortgage and secured loan for instance then the difference would form part of the IVA.
A secured creditor has the right to revalue their security at any time during the course of the IVA - so they can claim for a portion of the debt being unsecured and thus receive voting rights and dividend payments for that amount, but then cannot change their minds about resecuring the balance at a later stage.
Hi Mel
So a secured debt that is a higher value than the security value [house] can come into an IVA even if the property has not been sold ?
That's news to me !!
Not only can it Andy - but it should! ie the secured creditor ought to be given the opportunity to revalue their security and vote on the unsecured portion. In reality most of them don't, as they would rather rely on the appreciation of the property in future or the reduction of their debt by ongoing repayments.
