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I am currently considering an IVA, rather my solicitor is advising me that it may be a good thing.

I have about £50,000 in current debts but this could increase to over £135,000 due to a company I owned 6 years ago which went into compulsary liquidation.

One problem I can see is the equity in our jointly owned house, which at present is over £250,000, as I now have a bad credit rating I do not see how I would get a remortgage in 4 -5 years time

Also I am in partnership with my wife in a company which has been going for over 2 years, this is not a limited company, but the profits are increasing all the time, and for the next tax year it is predicted that profits could be over £150,000, is the business protected? As this is my only income.

Hello marl

I can`t give you any advice on the debt side of things but having said that you have come through to the best site for advice, however I can tell you that you would be able to get a remortgage in 4/5 years if you go into an IVA, as long as the IVA is conducted satisfactorily.The rate and lender would depend upon the outcome of a credit search on yourself and each case is looked at on it`s individual merits. Hope this helps

Hi marl

With debts of £135,000 and equity of £125,000 you are barely insolvent. But I would certainly suggest a full and final settlement with your creditors rather than a contributions based arrangement. You also have an interest in the business, which will need to be valued for the purpose of your statement of affairs.

My view would be to try and broker a direct settlement with your creditors, thus avoiding the need to pay professional fees. This might work and is definately worth a try - but if you are going to do this via a remortgage, do be sure that you can afford to pay the increased payments.

Good luck!

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