Hello,
does anyone know if can i take a loan out to pay off my iva? i was in my 3rd year, but it has been extended again to 5 years due to divorce and my income becoming less. My remaining payments are 225 over 59 months.
I am wondering if the loan has to be from family and friends or it can be from a bank or credit company?
Also what is a realistic amount to offer bearing in mind over 49 months the payyments will be 13,275.
You won't find anyone who will give you a normal loan whilst in an IVA.
You can ask a family member or friend to assist you though. The offer should be as close to the original dividend as possible.
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
It is possible to get a secured loan to clear an IVA provided there is sufficient equity and creditors and your IP are happy. I would have thought anywhere between 10k and 12k would be reasonable given the length of time left on your IVA and the previous problems.
Would you get a secured loan at the moment Michael, considering mortgage companies won't consider a remortgage?
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
There is a lender that will offer loans to clear IVAs but the criteria are relatively strict and there must be equity.
The maximum loan to value is 70% there must be no missed IVA payments nor anything adverse since the IVA was approved. It would only be available to a small number of IVA clients but is certainly an option if suitable.
Not heard of that before but something worth considering depending upon how much the repayments would be.
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
The rates are between about 12 and 18% so I suppose it would depend on the repayment term. But it would certainly be better to take a small loan at a relatively high rate rather than switch the whole mortgage to adverse rates which is the other option.
The advantage is that you can then remortgage after a couple of years to a high street rate once your credit file is cleared.
Brilliant help and site. Thanks for all that guys. I was lead to believe by my iva company that you cannot pay off your iva with a loan. I have a problem where every time I need new replacement things in the house I work extra hours to pay and then the company want half for the creditors. Better to have a loan and know my outgoings and so I can move on in life. Really hard when you cannot replace things that break. Thanks again
I seems strange that your IVA company would suggest to you that you can not settle your IVA early with a lump Karen. At the end of the day, if it can be worked out and the money sourced, most IPs jump at the chance of a full and final as it gets the IVA done and dusted and they get a good chunk of the fees they would have earned over years all in one go.
Hi michael,
I was told I cannot take a loan out for more than 500 pounds. I was hoping to get a loan secured or unsecured and pay the iva off by offering the amount I would be paying over the next 5 years .I have already paid two years at a higher amount 750 pounds a month.
My pay was reduced at work so it was extended to 230 over the next 5 years . Just cannot keep working so many hours to replace things. If its wrong and I can get a loan to pay it off secured or unsecured I will do this as at least I can budget for things I need without having to pay half of it to creditors. Thanks for0 all
You usually need the IPs permission if a loan for more than £500 but if it is to pay off your IVA then this may be allowed, after all a remortgage at the end of the term is a loan.
Speak to your IP and see what they say.
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
Thank you all for your help. Going to make the offer suggested by james and see what happens. Last time my iva company wouldn't even put the suggestion of this amount to the creditors. Trying again though. Thanks again
Hope it goes ok Karen. Let us know how you get on.
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
The IP firm you are using seem unusually inflexible when you appear to be offering a sensible repayment. I wonder what creditors would make of this if they discovered that the professional representing them was denying them the opportunity of an early settlement?
hi all, after mulling over my options for a week, i was about to send in the letter for a full and final settlement offer and accept family help,when on tuesday i received through the post a severance pay offer from the council in which i work. Knowing jobs are going to go anyway i am going to take this offer if the creditors accept the severance payment in full and final settlement. No point taking it otherwise as i will have no other income to pay my iva. I am going to offer in the letter of the full severance pay of 8,600 and state i will only take the severance pay if the creditors accept. Is this the right way to do it? Payplan is my company and I have had a lot of problems with them recently. It has taken them a year to call a creditors meeting regarding my reduced income ,Thanks all
