Does An IVA Mean I Cannot Buy A House?

People are surrounded in many problems these days due to the economic crisis that has not spared any country of the world. People are affected by the whole situation in more ways than one. People have lost their jobs and gone bankrupt. They have lost their possessions and got buried under loads of debts.

For many years, plastic money and credit market has taken place of paper money and the cash market. This has inculcated a very bad habit of over spending in people. Now, everyone has got so used to this method of spending money that they cannot live without it. People take loans and use credit cards to purchase things that they could not afford to buy in the present with cash.

An IVA has to be set up by a liquidation practitioner. A liquidation practitioner is usually an accountant or advocate who is endorsed to set up IVAs. Once an IP has decided to make an IVA application for you, they can pertain to the county court for a “provisional order”. This stops your creditors from starting bankruptcy measures against you. It also stops any other enforcement feat, without the acquiescence of the court while the temporary order is in force.

These are diverse with bankruptcy. You easily have your house mortgaged or re mortgaged and this is not liable to you having an IVA or had been under it in the past. IVA mortgage is a process that helps grant a re mortgage, so that the final payment can be settled in the agreement. This is however a modification of an IVA re mortgage. It can also mean that, when you apply for a mortgage while you are still a part of an IVA or had one in the past, and then this can also be termed as mortgage with IVA.

An IVA is a mutual agreement between the creditors and the debtors with the help of an insolvency practitioner. It enables the person to pay off his debts in small monthly payments over a period of maximum five years. It is better than bankruptcy, because, it requires you to make a budget and stick to it, to be consistent in making your monthly payments.

The practitioner who deals with your case of insolvency might recommend some lenders in this regard. You may also approach other lenders for no obligation mortgage clause. In a case wherein you would have recently recovered from insolvency and then you would want to apply for an IVA, this shall be subject to immensely high interest rates because lenders will perceive you as threat to their credentials.

For this reason, as long as your name is in the insolvency register, it will be very difficult for you to apply for any loan, be it secured or unsecured. Definitely, everyone will go through your credit history before lending you any money or entering into any mortgage agreement. It does not mean that you will not be able to apply for a mortgage for a house. You can do it; however, you will have to face great difficulty in convincing the creditor. The good news is that the IVA period is five years, and your name will stay in the insolvency register for six years. So, by the time you are done with your IVA agreement, there will be only one year left for you to wait to apply for a mortgage or a loan.

You can take a professional’s iva help and get advice to solve debt problems.