Debt Help – Should You Apply For an IVA Or Remortgage?

ecured loan IVA

An IVA is a legal arrangement in which you repay your debts through instalments, usually over a six-year period. You are required to meet certain requirements to qualify for the IVA. For example, you must have a minimum monthly income of PS100 and be in a position to pay off your unsecured debts within six years. If you fail to meet these requirements, you may lose your home. You may also have difficulty finding a reputable lender or a decent rate of interest. Therefore, it is imperative that you speak to your IP for advice and guidance before making a decision. Taking a risk without getting advice could lead to bankruptcy or even the loss of your home.

Whether you are looking to apply for an IVA or a remortgage will depend on the size of your debts. Secured loans usually carry lower interest rates than unsecured ones, which makes them more affordable in the long term. Nevertheless, if you find yourself unable to meet your repayments on a secured loan, you may wish to consider an Individual Voluntary Arrangement (IVA). In this arrangement, you apply to the court for permission to use an asset to recover your loan. This is an option that may give you the time you need to get your finances back in order and make your repayments more manageable. However, there are also risks associated with an IVA, so you should consider all of these factors before making a final decision.

An IVA is a legal process where you repay your debts by reducing your monthly payments. The repayment period is usually six to seventy months, with the last payment required at the end of the scheme. If your creditors refuse to accept your proposal, you may need to pay the remaining balance of the debts in full.

A qualified IVA advisor will be able to negotiate with your creditors on your behalf. It is important to do thorough research before hiring a professional advisor. An IVA advisor will take your debts into account and let you know which ones are most important to you. You should also know that your bank will not automatically close down your account if you declare bankruptcy.

An IVA must be accepted by at least 75% of your creditors ‘by value’. If you owe more than this amount, your creditors will most likely vote against the IVA proposal. They may try to haggle over terms and decide to include your assets or ask for a longer repayment period.

An IVA is a good option if you are facing large amounts of unsecured debt. It can help you avoid bankruptcy and keep your debts from rising. However, an IVA isn’t flexible, so if your payments become too high, they could end up forcing you to declare bankruptcy. Furthermore, an IVA can make it difficult to apply for a loan with the right lender. This is why you should seek the advice of an IP who understands your financial situation and can help you secure the best deal.

Debt Help – Should You Apply For an IVA Or Remortgage? was first seen on Pathway IT