I've paid an Iva for 5 yrs. The debt was for 17,000 and I've paid off about 10k. They wanted me to take out a 14k secured loan to pay the remainder, but revising my finances I haven't the surplus cash to pay the £150 needed for the next 18yrs to pay it bk. What will they do now??
As things stand, you do have the surplus ---- if they are expecting you to fund the £150 per month then your IVA payment must be currently in the region of at least £300. As irritating as it is --- if you have been affording £300 per month for the last 5 years, it is deemed that you can afford £150 per month going forward. Additionally, in a while, when your credit rating imnproves, you will be able to refinance this borrowing at a far healthier interest rate, reducing the monthly payment further.
Are you obliged to take a secured loan ? This will depend on your terms: pre 2014 terms ask you to remortgage or extend by 12 months if unable to do so ( a remortgage is not the same as a secured loan). Post 2014 terms added in the secured loan as a requirement. An IVA taken out after 2014 might still use the earlier conditions. In many cases those with pre 2014 terms are still offered a secured loan, if available, but not compelled to take it.
If, as many of these cases are, you are being handled by Select, on behalf of your IP, they will be able to explain fully (and probably far better than I do). They are very easy to speak to, sympathetic and professional.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk