IVA secured loan to clear the IVA

There are lenders that will consider issuing a secured loan to enable you to clear the IVA. However the sole purpsoe of the secured loan must be to clear the current IVA. LTV typically 50%- 75% depending upon property value and loan required.

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Secured Loan plus an IVA

If you are in an IVA and need a secured loan to clear the IVA or for some other reason the IVA supervisor would approve then we have loan compnaies that may be able to help - getting a loan as with a previous or current IVA will not be easy as many of the high street lenders still class you as a high risk. Therefore an IVA loan will need to be placed with one of our specialist IVA loan companies.

One question we are regularly asked here is about IVA Loans. “Is it possible to take out IVA loans?” Living within the financial constraints of an IVA can require some people to make changes to their personal lifestyle. Creditors in the IVA will insist that the living expenses of the debtor are reasonable and moderate, so as the creditors have a strong opportunity to recover as much as possible of the original debt, without the debtor taking out IVA loans to make ends meet. To read our article about IVA Loans, or loan applications during an IVA click here. In short, IVA loans go against the spirit of the IVA. In most cases an IVA will write off a proportion of your unsecured debts. The IVA payments are calculated so as to allow the person in the IVA to be able to afford their normal living cost, without the need for further borrowing. Therefore, should IVA loans be required, it is likely as a result of 1 of 2 reasons. 1) Either the person’s original living costs have risen, or not been calculated correctly. or 2) The person has not made the necessary changes to their life style that would have been required by the creditors, so that the IVA payments could be afforded. If you find yourself in either of these 2 positions, you should contact your Insolvency Practitioner (I.P.) immediately, and discuss the level of your IVA contribution.

 

IVA secured loan to clear the IVA

There are lenders that will consider issuing a secured loan to enable you to clear the IVA.

 

Different types of loans to clear debt

• Unsecured loans - An unsecured loan is a loan that is not backed by collateral..Unsecured loans are based solely upon the borrower's credit rating. As a result, they are often difficult to get 
• Credit card loans – These are offered by credit card providers to existing customers to either consolidate existing credit card balances or loans in to one loan.
• Small business loans – These are loans offered to businesses that may either be unsecured, partly secured or guaranteed by the DTI or bank.
• Payday loans - A small, short-term loan that is intended to cover a borrower's expenses until his or her next payday..
• Secured loans – These loans assign rights to the security of an asset in the event of a loan default.

 

Sub-prime loan companies - for borrowing after bankruptcy
Sub-prime lenders are licensed lenders who are willing to make loans to people who are unable to get credit from mainstream lenders because of a poor credit record or for people looking at borrowing after bankruptcy. They often charge a much higher rate of interest than banks and building societies.