Unsecured debt is the only type of debt admissible in an Individual Voluntary Arrangement (IVA). So if you are considering an Individual Voluntary Arrangement (IVA) knowing what type of debt you have is important.
There are two types of personal debt Secured or Unsecured.
Follow this link to find out about secured debt debt and how it is considered in an Individual Voluntary Arrangement.
It may be possible to identify the type of debt you have if you still have the original paperwork.
If your debt is unsecured your creditor does not have any claim to the goods you have purchased with the loan, even if you are failing to make your agreed payments.
To use an example if you used a personal bank loan to buy a car but then failed to continue making your agreed payments, the bank have no right to your car and are unable to repossess it. They can however persue legal action to force you to continue making reduced payments. If you are unable to make these reduced payments they can then petition for a Bankruptcy.
Only unsecured debts can be put into an Individual Voluntary Arrangement (IVA). If your debt is unsecured it can be included in an Individual Voluntary Arrangement (IVA).
Unsecured debts are more common than secured debts. Typically they fall into these categories:
- Credit Cards
- Personal Bank Loans
- Bank Overdrafts
- Catalogues
- Store Cards
- Shortfalls Incurred by Property Repossessions
- Shortfalls Incurred by Vehicle Repossessions
- Credit Agreements for “Buy now- Pay later” Furniture
- Credit Agreements for “Buy now- Pay later” Electrical Goods
- Overpaid Benefits
- Unpaid Income Tax
- Unpaid VAT Bills
- Unpaid Utility Bills
- Unpaid Mobile Phone Bills
To find out more about Individual Voluntary Arrangements (IVAs) and how they might help you solve your unsecured debt problem visit My IVA Adviser and ask to speak to one of our specialist Individual Voluntary Arrangement advisers. If you prefer you can download one of our free IVA guides designed to help you solve your financial problems.
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