IVA and remortgaging

livewire82

Bit of a complicated situation I have, and one I could really benefit from getting some advice on...

I've been living with unsecured personal debt for as long as I can remember. Currently 1 personal loan that was initially taken for debt consolidation, 2 credit cards, 1 loan for a new boiler, 1 loan for a new kitchen and a payment plan for personal tax bill that I was unable to clear in one go. All of this totalling approximately £30k. All just about manageable if I live frugally plus I've always had a stubborn determination to clear this myself, particularly as I recently started a new job on £45k.
There have been a number of challenges along the way, including no less than 5 redundancies and the varying periods I had out of work really set me back financially.
Until July last year I was also the co-owner of a business (which was a limited company). However, I resigned, with the business underperforming and having built up debt in my Directors Loan Account which sat at around £16k. Not so much of an issue whilst the company remains active but within the last month, the other director who stayed on and whom I no longer have any communication with after a breakdown in our work relationship, has decided to liquidate business. This means my £16k debt is now in the hands of the liquidator and I've recently just received contact from them.
With any money I have left over after living expenses going on all of my other debts, I simply have nothing left to pay towards this DLA debt. I'm due for a £5k pay increase at work in about 4 months and I qualify for annual bonuses, which all helps but there's certainly no way I'd be able to clear that amount any time soon. I've yet to negotiate with the liquidator but I'm not feeling very optimistic about my chances of them just agreeing to my terms.
I recently explored other options and spoke with a company that deals with IVAs. In short, from what I've been told its a bit like bankruptcy whereby I'd be blacklisted from any borrowing for 5 years but not as severe on your credit file. We'd agree to a monthly amount to pay off the total debt and and whatever is left after 5 years is wiped off. Sounds like a valid option for me but for one issue... I am a homeowner and I have equity in my property. I've heard that this may stand in the way of being able to go down the IVA route. So if that is the case, would I be able to release equity for my mortgage to pay off the debt? This is effectively additional borrowing and with over £60k, surely this is not going to be possible?
I just need a bit of guidance on this. My main concern is getting the liquidators off my case. The last thing I want is CCJs and being taken to court, especially with a new job that I cannot afford to jeopardise. But I also need an affordable way of clearing the full amount of debt. What are my options?

ManyWays

This DLA is a large proportion of your debt - it is possible that that creditor may vote against an IVA which would then not be approved. If you have a LOT of equity in your house the IVA is more likely to be rejected.

An IVA has exactly the same effect as bankruptcy on your credit record, it sounds like the IVA firm lied. During the 5 years (which may be extended to 6 years) you will not be able to borrow more than £500 without permission from your IVA. And if you have to eg get new car finance it will be a horrendous rate of interest.

Also in an IVA you would be expected to release equity from your property in the last year, which may be a secured loan at a high rate of interest.

Have you looked at a secured loan as an alternative?