IVA - where to start?

freccle

Up to about 4 years ago I was managing any debt fairly well. My partner was self employed, we were getting working tax credits and we could manage. Then he was diagnosed with bowel cancer and everything fell apart. He is in remission but during the treatment he couldn’t work so the business fell apart and I couldn’t meet the loan repayments etc. However I worked out a informal debt management plan with all the creditors where I was/am just paying £1 per month.
They have been very good, as have NPower who reduced our power bills for 2 years which was a huge help whilst my partner was suffering the effects of the chemo and couldn’t get warm.
However about 2 years ago it turned out that in 2006 I signed as guarantor for a £9500 loan for business which was run by my partner and three more directors. I genuinely didn’t know I was signing this and would never have agreed if I had. It has obviously caused a lot of problems between my father and myself but it’s a faite accompli. Fast forward 2 years, lots of legal advice and it’s come to the point where a court hearing will be set for about March next year. I am defending the case but my solicitor admits that it is really only a delaying tactic and I stand very little chance of winning. And it might open the floodgates for other creditors. I own my own house (my partner has no claim in the house and has never contributed to it) and a court order would then create a charge on the house and I'd be expected to sell it (it’s only worth about £65000 but my debts are only (only!) about £21,00)
So I am going to apply for an IVA but really don’t understand how it works.
It appears that a company (my solicitor reckon he’s recommend a reputable one) get all my creditors together and offer so much per month to them and if 75% of them agree, it will go ahead and is for 54 months.
But I have some questions – I feel that surely in that the next 4 years as my partner recovers, he will earn enough to pay off a lot of the debts and plus, awful as it sounds we are in our 60’s and his mother is still alive in her 80’s with a reasonable estate to be divided between her 4 sons, Inc. my partner so there is also the possibility of that.
However so maybe he earns £8000 and it goes to pay off the IVA – how is it divided – I owe £9500 for the loan but some of the debts are just small credit cards debts of about £500 or less. And if the worse comes to the worse and he doesn’t earn anything or, to be blunt, dies (no life insurance) at the end of the IVA can I be forced to sell the house? I can’t raise equity on it at the moment – I’ve tried, the interest rates are too high and most say that at 61 I’m too young to leave the loan against the house just gaining interest.
I now suffer from depression and really cannot face the thought of selling the house now so am less likely to be able to face it at 65.
I suppose I just want some basic advice as to what happens with IVA’s.