Hi marl
With debts of £135,000 and equity of £125,000 you are barely insolvent. But I would certainly suggest a full and final settlement with your creditors rather than a contributions based arrangement. You also have an interest in the business, which will need to be valued for the purpose of your statement of affairs.
My view would be to try and broker a direct settlement with your creditors, thus avoiding the need to pay professional fees. This might work and is definately worth a try - but if you are going to do this via a remortgage, do be sure that you can afford to pay the increased payments.
Good luck!
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