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Iva's

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I read the story with great interest about 16,000 people having taken IVA's in 2005. It says that if you owe over 10k to 3 or more lenders and are in full time employment then you qualify. Can somebody here explain the full implications of taking out an IVA? For instance, surely taking one of these out means that the bank seize your assets? If it really is that easy to run up a 60 grand debt and then just pay back 20 grand of it, then why isn't everyone doing it? Whats the catch? In short, I know what the IVA is, but there doesn't seem to be much explanation relating to how it will affect your life for the next 5 years.

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i think the jist is it buggers your credit rating for 6 years but then you can start all over again. As for the banks repossing you, well it depends, if they are unsecured loans then your home is not at risk and whilst they can send the bailift if you blew the money on holidays and high living rather than PS2's there's nothing to take is there !

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Guest Charlie The Tramp

i think the jist is it buggers your credit rating for 6 years but then you can start all over again. As for the banks repossing you, well it depends, if they are unsecured loans then your home is not at risk and whilst they can send the bailift if you blew the money on holidays and high living rather than PS2's there's nothing to take is there !

Lenders are now seeking charge orders on your property for these debts. The unsecured loan has now become a secured loan. ;)

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Has anyone noticed the new advert on TV from a debt company. I can't remember which one there are so many of them these days.

They say "there is a little known piece of government legislation" then they go onto to claim they can wipe of XX% of what you owe and you will be debt free in 16 months.

Are they pulling people into IVA's I wonder

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Lenders are now seeking charge orders on your property for these debts. The unsecured loan has now become a secured loan. ;)

They can seek all they like, highly unlikely to get them for under £30k and who has that with one lender.

However the IVA's rely on the banks accepting them and not selling the debt onto break-your-leg-if-you-don't-pay. co.uk

I think a lot of people are in for a shock this year.

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They can seek all they like, highly unlikely to get them for under £30k and who has that with one lender.

However the IVA's rely on the banks accepting them and not selling the debt onto break-your-leg-if-you-don't-pay. co.uk

I think a lot of people are in for a shock this year.

No matter then, if you have nothing to lose might as well run the debt up to £30K, £50K, £80k and go IVA or bankrupt anyway - it seems to matter not a fig then whether the bank likes it or accepts it.

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The IVA route sounds pretty good to me if you are in serious debt. Why not take out thousands of pounds in loans, see the world and then go bankrupt or get an IVA? Am I not right to assume that your PS2 is safe as well due to the fact that the loans are unsecured? Seems to me if this is the case that everyone should get an enormous amount of debt and then just get an IVA.

On another note, with the amount of IVAs going up, and this being a trend that is likely to continue, this is going to have an impact on the housing market. Being bankrupt or having an IVA knackers your credit rating for 5 years, so that basically means no mortgage yes? So last year that makes 16,000 or so FTB's who absolutely definitely can't get into the housing market.

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They can seek all they like, highly unlikely to get them for under £30k and who has that with one lender.

However the IVA's rely on the banks accepting them and not selling the debt onto break-your-leg-if-you-don't-pay. co.uk

I think a lot of people are in for a shock this year.

Thats not what I'm hearing. I've heard of a fair few charges for smallish figures (£2000+) even on occassions when the IVA repayments are upto date.

I don't think there is such a thing as an unsecure loan in this day and age. One missed payment and some banks will simply charge you £200 and transform it into a secure loan. I won't mention the bank I've seen do this but its specialises in credit cards.

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Problem with an IVA is that you need your creditors support (75%) and if you fail to adhere to the terms you can end up bankrupt any way.

Most creditors will put in a modification to the proposal that if the arrangement fails you supervisor must petition for your bankruptcy.

IMHO (as somebody who Supervises IVA's) you are better of declaring bankruptcy unless you have significant assets you don't wish to lose.

BTW if you are bankrupt you can propose a "fastrack IVA" via the Official Receiver.

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Creditors can turn unsecured debt into secured debt by applying for a cjarging order. There is no limit on the amount this can be done with, and is becoming more and more common, before people get to the IVA stage. It kind of makes a mockery of what the debt helplines say about not turning unsecured debt into secured, as the companies are doing it for you! Egg are very good at this by all accounts.

Another myth is that your credit record stays rubbish for 6 years and then everything is OK again. After this period you will still find it very very hard to get credit and you will have to go so a sub prime lender for your mortgage and pay a really rubbish rate. So its not as great as it seems.

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Creditors can turn unsecured debt into secured debt by applying for a cjarging order. There is no limit on the amount this can be done with, and is becoming more and more common, before people get to the IVA stage. It kind of makes a mockery of what the debt helplines say about not turning unsecured debt into secured, as the companies are doing it for you! Egg are very good at this by all accounts.

Another myth is that your credit record stays rubbish for 6 years and then everything is OK again. After this period you will still find it very very hard to get credit and you will have to go so a sub prime lender for your mortgage and pay a really rubbish rate. So its not as great as it seems.

Charging orders are rarely used these days and the courts tend to take into account the totality of debt so that one creditor cannot put thenselves in an advatageous position vis-a-vis the other unsecured creditors.

Your credit history at Experian would be clean after 5 years (last time I checked). That said many lenders have a question along the lines of "Have you ever been subject to bankruptcy or made a compact with your creditors."

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Charging orders are rarely used these days and the courts tend to take into account the totality of debt so that one creditor cannot put thenselves in an advatageous position vis-a-vis the other unsecured creditors.

My experience of going on lots of debt forums on the internet is that charging orders are getting more and more common - why do you think they are used less? Are you in the business? If so shed some more light. I think you right about the Courts trying to keep all creditors equal, but this is generally when the debts are unsecured. This is why Creditors are so keen to turn the debt to secured. thanks.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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