Hi there London Cool
I agree with Melanie, it is standard procedure for creditors to ask for equity to be released in the 4th year of the IVA. There are many mortgage brokers and lenders who specialise in this area. As such, it should not be an issue as long as you are not trying to re-mortgage past 90% of the value of your property.
In terms of the HFC insurance policy claim, in my experiance, there is not a lot you can do about this and in reality, there is not much point in trying. However, look on the bright side which is this: From what you have said, your IP is going to charge total fees of about £8000 + VAT (£2500 nominee fee and 15% of realisation which is c£5400), lets say £10,000 to make the maths easy. This will leave £28,000 for your creditors. £28k with return on a £64k debt is 44 pence in the pound. HSBC will demand a minimum of 40p in the £ to accept the IVA so there does not seem to be an issue. As such, once your IVA is in place and you pay it, HFC will only be getting back 44% of thier debt insurance or no insurance.
James Falla
Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.
Visit my blog at:
http://jamesfalla.blogs.iva.co.uk