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Posted: **Sun Jan 13, 2008 9:39 pm**

when calculating your total dept can you include mortgage arrears and car loans

Posted: **Sun Jan 13, 2008 9:45 pm**

Hi. You can only include unsecured debts, not hp or mortgages as they are secured.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

Posted: **Sun Jan 13, 2008 9:55 pm**

But you can include mortgage and HP shortfalls as unsecured creditors if the creditor chooses to revalue their security.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Posted: **Tue Jan 15, 2008 12:04 pm**

Hi Mel
Can you just clarify this for forum members ?
Thanks

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
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Posted: **Tue Jan 15, 2008 1:46 pm**

When a debt is secured - it is attached to a particular assets - eg a property, so that if the property is sold, the secured debt will be paid from the proceeds. Usually, secured creditors will only lend a certain percentage of the value of the asset - to give them a little leeway in respect of fluctuating values, but occasionally they may find that they are in a shortfall postion - for instance if the asset devalues or the borrower fails to honour their payments. In which case they are allowed to treat the shortfall as an unsecured creditor.

Revaluing security can be done at any time by a lender, if they feel that there may be some risk to their security. For instance when property values drop. This means that they allocate more of their claim to the unsecured element, and less against the value of the asset.

Don't think I've explained that very well - but the priniciple is that it is down to the secured lender to decide on the value of their security - which can be revalued at any time during the course of an IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp