Hi Anna
To answer your specific questions, it does look like an IVA could be a possible solution for you, but you should also consider the alternative merits of both bankruptcy proceedings or a DMP.
A contributions based IVA will have run over 5 years, so your suggestion of three is unlikely to be acceptable to creditors. If the sum of £400 per month is affordable, it will take you over eight years to repay your debts by way of a DMP - and possibly longer if the creditors continue to charge you interest.
So long as you are seen to be offering a settlement to your creditors, to the very best of your ability, then there is no reason why an IVA should not be accepted by the creditors.
Your new bank account should be set up as soon as you decide that you can no longer maintain your contractual repayments. The bank cannot use monies held in your daughter's account to set-off against your debts, and you are unkikely to be permitted an allowance to support your mother within the IVA. If this is a non-negotiable point, then I would think that a DMP is a better way forward for you, albeit a much longer repayment period.
Are you a property owner at all?
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