IVA Articles
Articles and Information on everything related to IVAs
IVA : What Is An Unsecured Debt?
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. To find out about secured debt and how it is considered in an Individual Voluntary Arrangement follow this link
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:
Store Cards
Personal Bank Loans
Mobile Phone Bills
Bank Overdrafts
Unpaid Utility Bills
Catalogues
Credit Cards
To find out more about Individual Voluntary Arrangements (IVAs) and how they might help you solve your unsecured debt problem visit myIVA-Adviser.com and ask to speak to one of our specialist Individual Voluntary Arrangement advisers. If you prefer you can download one of our free guides designed to help you solve your financial problems.
