Free advice line 0800 014 7863
Lending to consumers with IVAs is becoming increasingly popular. An IVA loan is another kind of adverse credit loan, or bad credit loan, which is tailored to suit people who cannot get the best loan deals because of a poor credit history.
If you are considering an IVA loan, please see below for information on how an IVA loan could endanger your arrangement with creditors. If you would like a no obligation chat with one of our loan specialists, please call 0800 520 0923 or contact us online. We will be pleased to offer you the best debt advice free of charge.
The terms of an IVA do not permit anyone to apply for additional loans while contributing to the individual voluntary arrangement programme and the very basis on which your IVA can succeed depends on the level of debt you had before you entered into the IVA. If were to take out an extra loan, maintaining the amount you agreed repay under an IVA could be jeopardised and may result in a lot of unnecessary worry and stress.
Increasing that debt during the IVA process will mean your IVA is likely to collapse and you will be left with a whole lot of debt you cannot clear.
If you do find an IVA loan company who will agree to offer credit, your creditors will immediately cancel the IVA if the additional borrowing is discovered. It is quite possible your creditors will be keeping tabs by regularly consulting credit reference agencies throughout the duration of your IVA.
Additional borrowing while undergoing an IVA does not sit well on your credit file, so not only will your debts suddenly increase but your credit rating will also suffer.
IVA consolidation loans, as well as secured IVA loans, are relatively new on the market and despite the threat to the IVA terms and conditions IVA loans are becoming increasingly popular.
If you are considering an IVA loan because you are struggling to maintain your payments under the IVA or would like to make an expensive purchase, such as a car or holiday, then you should contact your Insolvency Practitioner as soon as possible. Your IP may be able to lower your payments to help you adhere to your IVA and at the same time enable you to afford unaccounted for expenses.
