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What is the difference between a secured and unsecured debt in an IVA?

April 26, 2017IVA secured unsecured debt

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What is the difference between a secured and unsecured debt in an IVA?

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A secured debt is one where the lender has taken security over one or more of your assets to protect itself in the event of default. The most common example is a mortgage or secured loan over your home where the lender has specific recourse to your home in the event of default. In the case of unsecured debts the lender does not have specific recourse to any of your assets. A credit card is an example of an unsecured debt. Typically an IVA includes only unsecured debt.