Don't mean to be flippant but what's the point / benefit of IVA

thewad

If it's unsecured how can they make you sell your house.
Thought unsecured was just that unsecured.
You take the money out on unsecured rates as opposed to secured rates.

John

trudij

Charco wrote: »

Sorry if i'm about to sound old fashioned or preachy but some people also like an IVA because it's a genuine attempt to address at least some of the wild amounts of debt they've run up!

Thats why I chose to do mine.... just made me feel like I wasnt quite such a bad person,and i was at least TRYING to pay them off....

Nick700

John, there's a possibility that if you default on an unsecured debt and the lender then obtains a County Court Judgment against you, and you miss a payment to that Judgment, that a creditor can obtain a Charging Order against you.

This basically makes their debt secured on your house and carries with it all the risk of a secured loan. For example, if you miss a payment to the Charging Order, the lender can ask the court for an order making you sell your house.

However, it is rare that a Court will make an order like and this, and you are usually given lots of opportunities along the way to avoid this happening. Usually order like this are made when the person who owes money buries they head in the sand and never tries to repay the debt.

Nick