Whether you’re a homeowner or a renter, you may have to apply for an IVA. Normally, homeowners do not have to sell their home as part of the IVA. Instead, they are asked to re-mortgage their home. If they do, their IVA can end early.
If you’re considering applying for an IVA, you should be aware that you will have to disclose a lot of information. You should also be aware that your credit score will be affected. This means that you may have trouble finding a good loan or rate of interest. It’s also possible that you will be bankrupt. For this reason, it’s important to get advice before you make any major decisions.
In order to be eligible to apply for an IVA, you must have a substantial amount of debt. You should also have a stable source of income. It’s important to budget your payments. This will help you plan your finances for the future. You should also avoid applying for any new loans or credit while you’re in an IVA. If you do, your creditors will be able to squabble over your repayments.
When you apply for an IVA, you should be sure to give full details of your debts and assets. The IP will then assess your financial situation. This will include any savings or assets you have. The IP will then work out a repayment plan for you. You will also have to declare your normal monthly expenses. This will include your mortgage, rent, internet, clothes, fuel, sky TV, and council tax. If you have any special circumstances, the IP may be able to offer you an extra allowance.
If you’re a homeowner, you’ll need to submit a detailed valuation of your property. Most IVAs have a special clause regarding how your home is treated. In most cases, your home will be protected during the IVA. However, you may be asked to sell your home if you don’t meet the terms of the IVA. If your home is in a bad state, your creditors may want to use it as collateral for a new loan.
If you’re a renter, you’ll have to provide evidence of your income. You should also make sure to check the terms of your tenancy agreement. If you fail to make payments, your IP will be able to take you to court for an interim order. This can stop your creditors from taking further action.
If you have a bad credit score, it may be difficult to find a good loan or rate of interest. You may also find it difficult to get an IVA. The Insolvency Register is referenced by all the major credit reference agencies. This is recorded for six years and will affect any future loans.
If you are thinking about applying for an IVA, it’s important to get advice from a qualified professional. You should also check the fees for the IP and the terms of service.
How to Apply For an IVA was first seen on Help with My Debt