Any advice would be greatly appreciated,

[joe]

Hi, with an estimated debt level of £57000 I have £28000 eqity in my house. One iva comapny has come up with £254 for the first 2 years until my car hp finished and then £415 for the final 3 years with an eqity release of £19000. I have no objection to repaying the debt however the equity release seems very excessive.

Can i go to a number of iva specialists or can i only ask one. The reason that i ask this question is because i have submitted all of my details to this comapny and not very happy with these proposals?

Any advice would be greatly appreciated, thanks joe

[kezza]

hi joe and welcome

you should talk to at least two or three companies and you are not committed to any till you have signed your proposal.

[MAY2006]

Hi Joe
If you can afford to remortgage now and release some of the equity you could look at a lump sum IVA which is what I did, this would give your creditors a full and final settlement upfront and can be completed in 6 months.
As Kezza has said check with a few companies, the ones that post on here are particularly good

[tracy.h]

the one thing that you should be aware of regardless to the equity in your proprty now in four or five years down the line of your iva that might not be the case you should remember when proposing an IVA is that if say for instance your proprty decreases in value,and the way interest is going at the present if your equity was to decrease,im not saying this would be the case but where would you get the balnce to pay the £19000.also would you be in a position to remotgage to pay this as you say excessive amount,I personaly think that this equity release should be reviewed nearer the end of your iva.Im not an expert but im sure that one of the experts will be along shortly to advise.Good luck in what ever you decide to do.

[MelanieGiles]

Hi Joe

I would definately look at the possibility of remortgaging now and effecting a lump sum full and final settlement. This can be done via an IVA or by making offers directly to your creditors - easier doing via an IVA if you have more than four creditors.

As your mortgage repayments will increase, this will render any future contributions unaffordable and get you debt free at a much earlier stage.

There are also benefits for your creditors, as they are unlikely to see any money for the first two years as your contributions will be absorbed in IP fees.

If you have debts with HSBC or Northern Rock, then you may not be able to achieve the minimum dividend in this manner, so contributions and a back-end equity release may be the only way forward.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk