Hi. Told to take out a loan against my property at the end of my IVA. Advice please

[nickjohn]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Hyperdrive

The way I see it, the creditors are still there for as much as they can recover until that certificate is issued, and they will get the most they can.

Ultimately the repayments when in an IVA are a far better option than repayments via any other method due to zero interest.
If you were paying back £300 a month for 5 years the interest would be circa £5k, so IVA best option.

[Hyperdrive]

Nickjohn, put it another way, if your debtor has equity wouldn`t you want to get at it?

[nickjohn]

Slightly different scenario as I can't charge a punitive interest rate from day 1 on the original debt but I get what your saying.

Personally however much I moan about IP's abusing their powers and, yes I am going to say this, however many times they move the goal posts, an IVA is a cheap option for borrowing money, because that's what you are basically doing.

[lem]

Absolutely hyperdrive, but so would many debtors use their equity to settle their debts if they could access it therefore wouldn't have gone down the iva route, if secured loans are now going to be available again to people with bad credit then I would imagine many people would do this rather than signing up for a 5year iva and then having to release the equity and take out a secured loan at the end anyway

[nickjohn]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lem

Absolutely hyperdrive, but so would many debtors use their equity to settle their debts if they could access it therefore wouldn't have gone down the iva route, if secured loans are now going to be available again to people with bad credit then I would imagine many people would do this rather than signing up for a 5year iva and then having to release the equity and take out a secured loan at the end anyway

If you crunch the numbers Lem the best way to do an IVA is to pay as much as possible in the first 5 years then take out a lower secured loan for what's left. Otherwise you have a high interest rate on the full debt for the full term and this can add a chunk of interest on which you could avoid..

[North East Derbyshire CAB]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples

NickJohn. You would never qualify for a remortgage or a loan so an extension would be appropriate. Any remortgage or loan is only suitable for those with the equity and the means to repay.
I think that there is a fear that people will be made to remortgage or take a secured loan that they cannot afford to repayu when this would not be the case.

NED/CAB.
Thanks for your comments but I would not be posting on here if everyone agreed with my opinions as where would be the fun in that!

Hi

Nice one Michael and food for thought.

Thinking is the key, but then again maybe not too much........ on a Friday anyway!!:)

NED-CAB

[Sensible77]

lem - isn't taking out a secured loan to pay debts to avoid an IVA what many of us did anyway? If you've still got access to credit, you'll pay off the debts then start to use your credit cards again. I did and I’m sure I'm not the only one! Debt consolidation can only work if you’re very disciplined. One of the benefits, in my opinion, of an IVA is that you can’t access credit. As nickjohn wrote: “an IVA is a cheap option for borrowing money”. That’s also how I’ve looked at it.

[North East Derbyshire CAB]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Shaun Vickery

Pennyless: As a matter of policy I'm afraid I'm not authorised to discuss ANY commercial arrangements we have with ANY third parties but please don't read anything into that whatsoever.

Hi Shaun

Are you still posting on here?

As promised we are back

However before we ask anything further could you elaborate on this post some as it has confused us a little?

NED-CAB