IVA + equity

debtfreenotyet

hi all, some advice needed, I have debts of approx £35.
I have cleared £6000 by selling my car and buying a cheaper one.
I need a car for my work.

My debts are mainly credit card all in my name only.
approx £16000 on life of balance transfers at 5% pa.
about £15000 at 21% interest
about £5000 at 25% interest.
I have 6 creditors.

I would think we have about £50000 of equity in our house. We added an extension last year.
When we bought the house in 2006 my partner put down a deposit of £40000 from the sale of her house.

I can meet the current monthly payments unless I have a bad month, I am self employed, but I am not clearing the balance.

My questions are -

If I go into an IVA would I have to release equity from our joint property at the start? of the IVA. or could i agree to do this at the end of the IVA. would my share of the equity be based on the total equity.

I have read that some people have been able to negotiate down the value of the debt.

If I agreed to pay say £25000 via monthly payments over 5 years would my creditors force me to re mortgage?

what would a practicioner charge to setup and administer the IVA

Charco_2

You'll have to address the equity at some stage but it's sort of up to you... If it's only your IVA (ie not joint! Only you and not both of you) then I would argue that the first £40k of equity is obviously your wife's since she put down a huge deposit! You only have a claim on the equity growth since then!