I am in an IVA with Debt free, it is coming to an end soon. The debt has been past to Select Partnership as there is equity at the house. I would like to know the ins and outs as Debt Free are not being helpful.
Hello Mr A. The debt is not being passed to Select Partnership. Your case has been referred to them to investigate the possibility of getting a secured loan to offer creditors in lieu of equity.
This has been the subject of hot debate on the forum of late and is contrary to the terms of many current IVA's (though will be the norm for IVA's going forward).
First you need to read your own proposal thoroughly regarding the equity clause provisions. If it states that in the event of being unable to REMORTGAGE you have to pay a further 12 months this might well work out cheaper for you in the long run and your IP vcannot insist you do otherwise. A secured loan is NOT a remortgage.
There might be the odd case where a secured loan is more favourable and it might be an idea to allow Select to investigate and present the figures for your consideration ... but do not be bullied into anything against your will, unless already catered for in your paperwork.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
When we looked into a secured loan to make f & f we were told our creditors would not allow us to take on more credit. Hence we have had to use some of pension pot to complete early
Very few cases qualify for a secured loan anyway but it is good practice to review every file. This means when creditors are asked to extend they know that all angles have been investigated.
