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Hi. I am currently going through a remortgage and I'm releasing all available equity. There will be about 45K. I did consider a full and final iva but then decided to contact all of the creditors and offer them a settlement figure instead. I was hoping not to have an IVA on my credit file.

Anyway I am getting nowhere. These creditors who were hounding me on the phone have now gone very quiet. The ones that have replied insist on a 75% repayment settlement. The equity does not stretch to this. It seems madness to me. Surely the creditors are going to end up getting less if I go the IVA route which looks like the route I am going to have to take. I owe about £85. The equity I have is about £45.

Do you think a full and final iva could be agreed? Many thanks for your help and advice.

Hi missb and welcome to the forum

Well full credit to you trying to broker a settlement directly with your creditors. It is a shame that they will not accept your offer, which would ultimately give them more money as there would be no professional fees to be paid.

I am sure that given the figures you are quoting that an IVA based upon an equity release is more than feasible. I do a lot of these types of proposal, and they are relatively popular with the creditors who get paid a lot earlier than they would under the alternative bankruptcy proceedings. The costs are also significantly lower.

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