www.iva.co.uk

Hi we are seriously looking into an IVA, we have a secured loan on our house which is bleeding us dry..would this be able to be included on the IVA??

No, it is only unsecured loans which can be included in an IVA.

Hi
However if the payments on your unsecured debts can be reduced by way of an IVA or DMP then the secured loan payments may not be so draining.
Can you post more details ?
Regards

The secured loan will be included in the IVA, however only to the extent of any amount which is not covered by the value of the asset - ie any negative equity or shortfall. In the event that you do not continue to make the secured loan payments, the lender will have the right to commence possession proceedings against the property in an attempt to realise its security and therefore minimise any exposure in the event that they remain unpaid.

I didn't think that they were taken into consideration other than for I&E purposes when calculating your disposable income?

All liabilities are included in the IVA, the fact that some of them are secured merely limits the amount of any claim.

If a debt is fully secured, then the creditor has the right to either rely upon or revalue their security, which could result in a shortfall - now or at some time in the future.

You may have remembered the relatively lengthy exchange between Elizabeth, David and myself about this recently - where I undertook to seek appropriate legal advice. The results have been very interesting, and I am still batting queries to and from my lawyer in an attempt to have this completely clarified for the purposes of IVAs in the future - suffice to say that a big lunch, and perhaps an apology!, is looking quite favourable for Elizabeth at the moment - but the exercise has actually raised an awful lot of issues which are still requiring clarification - and even my lawyers (who are a very top firm) are struggling with.

As this is ongoing at present, I won't say too much more about it until I have received the full advice - following which I will make a statement on the site for all to share.

Looking forward to reading the advice and a copy when you get it to my email. If we owe Liz an apology - I'll take all 3 of us out for a meal!