If you’re struggling to make the payments for secured loans, for example loans that use your home or another possession such as a car for security, there are a number of things you can do to relieve the situation. However, Individual Voluntary Arrangements (IVAs) are primarily intended for use with unsecured borrowing such as credit cards and loans that do not have assets used as security.
If you have multiple different types of debt, for example a combination of secured and unsecured borrowing, an IVA may help with those debts that are not secured. Even if your primary struggle is with the secured debt, providing your unsecured debt is substantial enough, you may be able to get an IVA and use this to take the pressure off your other debts.
If you’re potentially facing bankruptcy, the first thing you need to do is speak to a debt professional such as an Insolvency Practitioner. These are people who specialise in matters of bankruptcy and insolvency, and they can advise you as to which measures will help you to avoid the worst consequences.
If you have many different debts and they are becoming generally unmanageable, it is likely that a combination of measures will be the best way forward. In this case an IVA may well be one of those measures, and using one for some of your debts may free up some of your resources and help get your secured debt back to a manageable level.
Although secured loans are not generally included as part of an IVA, your IP may suggest exploring one in conjunction with other measures. You can also consider options such as consolidation and other debt management programs, but it’s best to be wary of replacing debt with further borrowing, especially those types that put your assets at risk.