Sometimes your luck doesn`t just run out, it feels as though it runs away completely and you can find yourself in real financial difficulties. When the chips are down it can seem like there is no other way to resolve your difficulties and an Individual Voluntary Arrangement (I.V.A.) is the only way out. Now this may be completely sensible of course and there are many ways that an insolvency arrangement can be entirely beneficial. However none of us have a crystal ball and nobody knows what tomorrow has in store… so what happens if your financial life turns for the better after you`ve signed up to an IVA?
So you`ve been in an IVA for a little while and then you find that you`re in a much brighter position. The money is coming back in, you are now cash flow positive and the future is looking bright. You may find that you want to explore alternatives ways to borrow and maybe clear that IVA, or even borrow whilst leaving it in place.
What can you do to escape from it all? If only you could get a loan to consolidate everything and even get rid of the IVA - well all may not be lost.
My Sort of Loan is a home owner loan specialist and some of our lenders plans may enable you to take out a loan whilst in an IVA. Usually you will need to clear the debt, but your creditors may accept a reduced offer or in some cases you may even be able to leave it in place. There is a chance you could deal with your IVA in order to get on with your life.
Our UK based specialist loan team will try to arrange a loan to deal with your creditors, putting you back in full control of your finances. If you feel ready to take back the reigns find out your options, simply call us on 0800 0159 108 or dial 0330 0536001 (mobile friendly) alternatively complete our short no credit search enquiry form and talk to us about a debt recovery loan.
Ok it`s fair to say that unfortunately you`re unlikely to be dropping into your local high street bank for tea and a cosy chat with the bank manager about how much you`d like to borrow… but there are lenders out there who are prepared to help you back onto your financial feet. The trouble is where do you start?
One method our clients have used is simply to ask My Sort of Loan to sort out the how, where, why and who. By speaking to one of our qualified loan advisors you will find out quickly if we can help. Then we aim to ensure that you get the right product with the right loan or second mortgage provider.
My Sort of Loan will discuss your financial history and understand why you found yourself in an IVA, after all we want to help you out of financial difficulty not put you back into it. We`ll take the time to understand where you are now, where you want to be and how you intend to get there,so that way we can help you plan ahead and get you back to that positive position.
At My Sort of Loan we aim to provide the right advice that will not just get you back on your feet, but also put you back in a position to negotiate the best borrowing solutions down the line.
Rejuvenate your credit score without 5 years for an IVA to run its course. My Sort of Loan could arrange finance to clear your IVA in a fraction of the time.
Get the right advice from a company with no hidden agenda. We are obliged to offer you the most suitable advice when selecting a homeowner secured loan product from our lender panel. We have your best interests at heart.
Don`t be pushed down any route. We will not tell you to make erroneous complaints, try to make you feel obliged to make dishonest claims against other financial services providers or offer products that make money for us but aren`t a direct benefit to you.
Avoid over commitment. Don`t borrow more than you need to clear your IVA plus any essentials projects at hand, borrowing only what you need to make things right again.
Find your way back to the best loan or mortgage deals. Once you`ve resolved your credit problems with one decisive action you can look forward to engaging with financial institutions again in the future and walk into you bank with your head held high.
Ok so now that you`ve decided that perhaps the IVA was a hasty decision so how can you possibly unpick it all? Well basically it comes down to one thing - money.
The insolvency practitioner has a duty to recover as much of the original debt as possible and if they can`t obtain it from you during the term of your IVA, they may seek for you to borrow the money after the initial IVA term has ended. If you are a home owner this may be by requesting you to apply for a remortgage on your home.
Unfortunately just because the five years are up it doesn`t mean that you`re free to move on. If you can`t get a remortgage the IVA may be extended again until there is a consensus between a majority of your creditors that there is no more debt to be recovered from you.
So what`s the alternative? Well if you`re going to consider borrowing money against your home to settle your IVA at the end of it, then you may want to do it as soon as you are able to, thereby enabling your credit repair process to begin. You can ask your insolvency practitioner to arrange a settlement figure on your IVA at any time. If you have enough equity in your home (and if you can afford to sustain the repayments) you could consider a secured home owner loan / second mortgage to settle the IVA. Some caution is needed here though as these loans are secured on your home and carry the same risks as a mortgage.
Your home may be repossessed if you do not keep up the repayments on your mortgage.
So get some advice and then make a carefully considered decision.
My Sort of Loan will always arrange your IVA loan with one eye on the future, so that when your credit rating recovers you can start to look at cheaper loan products to bring that interest rate down (subject to prevailing rates at the time being lower).
Patience is needed here as this may take some years, but as they say time is a great healer and this is as true for affairs of the wallet as it is for affairs of the heart. Whilst your credit score is still suffering the ill effects of your insolvency, credit will inevitably be more expensive. That said, the further away you get from your IVA settlement date the easier it will be to get competitive loans or mortgages, provided that you`ve kept any new finance arrangements up to date.
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