The creditors will likely ask you to release equity during the final year of the IVA, based upon a property valuation of 85% loan to value. On your current figures this would result in borrowings of £124,950, and you currently owe £127,000, so no equity would need to be released, however this could change over the next five years if your property value goes up and the secured loans reduce. You should certainly be prepared for an equity release, but what advice has your own IP given you on this point?
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
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