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I have about 55K of debt. If I have a house say worth 120K and a mortgage of 80K but a secured loan on it of £24K, could I remortgage and offer the equity as a full and final settlement in an IVA?

SadSteph

If your property is worth £120k you could possibly remortgage to a certain percentage of the property value maybe 90-95% i.e. depending on your circumstances. It is not very likely that you could remortgage at 100% of the property value and if you could then this would leave you circa £16,000. Whether this would be sufficient to repay the debts would remain to be seen as I am not an IP I don`t feel I can really pass comment on this but my thoughts remortgage wise would be, you would probably have between £4-£10k available if you remortgaged using the 90-95% criteria. Hope this helps -Tony

Hi Steph

There would not be enough money left to offer a full and final settlement in an IVA. Do you have any disposable income on a monthly basis which could be used to fund monthly contributions, with perhaps an equity release at the end?

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