Individual Voluntary Arrangement Loan
Debt problems can impact on every aspect of a person life, being burdened by money problems can cause you to become depressed and feel that there is no way out of the situation you are in. More and more of us are beginning to struggle especially in the current economic climate, living costs are constantly on the increase and it affects our credit card and loan repayments.
Individual Voluntary Arrangements (IVA) could be a way to help you retake control of your finances.
What is an IVA?
An IVA is an agreement that is formed between you and your creditors. It works by reducing your current monthly repayments in to one more affordable monthly payment; this is done by working through your incomings and outgoings to determine a fair sum for you to offer to your creditors. This reduced amount can save you vast amounts on your current loan repayments. An Individual Voluntary Arrangement is for people with substantial debt, to qualify you must have over £15,000 owed to three or more creditors. You also be able to make reasonable repayments and have regular income. The company working with you must be a licensed professional as an IVA is a legal contract upheld by the courts of law, the fact that it is legally binding means that during the period of the IVA creditors cannot bother you in any way. Your arrangement will be set up over a 60 or 72 month period but must be agreed to by 75% of your creditors to be able to go ahead. Once in place you company will become known as the Supervisor of the IVA, they will deal directly with creditors on your behalf for the full term of the agreement. After the term of the IVA has ended any unsecured loan or credit card debt still outstanding is recorded as settled, saving you massive amounts on your total debt.
During an Individual Voluntary Arrangement your home is under no risk of being repossessed, equity in your home should you have any may need to be freed up to be funded towards your debts.
Individual Voluntary Arrangement Loan
Due to the strict terms of an IVA getting an Individual Voluntary Arrangement loan is not permitted whilst the IVA is being paid.
There is possibility of getting an Individual Voluntary Arrangement loan after the IVA has ended. If a credit check is carried out it will show an IVA on the record for six years, this could make it hard to find a lender as you will be judged as a high risk client.
There is, however, short term and high interest loan companies that can offer you an Individual Voluntary Arrangement loan without carrying any credit checks.
It is also possible to take out a re-mortgage loan during the IVA as they do not restrict you in applying for mortgage products. A re-mortgage can be a huge help in freeing up vital fund to pay towards creditors