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There is a contradiction in the IVA as you explain it.
If I have equity in my house you say I will have to remortgage to release this equity to pay creditors. This means I will take out a new debt to pay off an old one. Isee no gain inthat.
If I have an Endowment on the mortgage which I have to give to pay my old creditors I cannot use it to pay off the mortgage. Again I am not getting rid of debt, I am gaining more debt, at a time on or near retirement when I can least afford it and my income is about to go down by 50% or so.

Hi Jimd, welcome to the forum.

You don't always have to remortgage to release the equity, it depends on your individual circumstances but if you can afford to remortgage, it may be the best option. Mortgage repayemnts are usually much cheaper than the payments on the debts you are clearing so you are better off.

However, this is only one option. I suggest you speak to someone to discuss your individual situation and find the right solution for you. It may not be either of the options you mention.

As I keep saying, I would definitely recommend David Mond (Cleardebt) or Melanie Giles but like so many peopole on this site, I am biased because they provide such excellent service. You can find their details under experts on the left hand side.

Good luck and let us know how you get on.

If you have an endowment which is there to pay the mortgage, you would not be expected to give that up.

The equity release is now standard in most IVA's. You are expected to try at least two providers to see if you can remortgage. It is maximimum 85% ltv and your new repayments cannot be more than 50% of your IVA payments.

If you cannot remortgage, then your IVA will usually continue for another 12 months.

That is not really correct Jan, unless the policy is specifically assigned to the mortgage company which is rare these days. A free standing endowment policy would be expected to be realised for the benefit of creditors in an IVA, as it is an asset which would be available under bankruptcy proceedings.

Apologies Melanie - that is actually what I meant but I worded it badly.

Hi
Even repaying the full debt under an IVA [100p dividend] has many advantages, you are protected from creditor legal action, creditor calls and letters stop plus all interest and charges are frozen. You also have the peace of mind of making one affordable payment rather than juggling several.
Regards

jimd47 - are you thinking of doing an IVA? You need to take professional advice to cover the points you raise and the answers given here.

Have a chat with an IP and give him/her details of all your personal and financial circumstances and particulars.

Visit www.iva.com for reviews on firms and practitioners and select one or two to have a chat with.

They will give you the appropriate advice and it is free.

Let us know how you get on.