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we are looking at a full and final iva.
we believe our property is worth between £190,000 to £200,000. However our neighbour has recently sold his property for £169,000 for a quick sale. Are we right to be concerned about this as we are looking into remorgaging to raise the funds.
the new remorgage company is asking for £95 processing fee to be paid up front and a valuation fee of £150 to be added to the morgage. however if the desired value is not reached we will still have to pay this fee. we are concerned that we may end up paying £245 we cannot afford for possibly nothing!
our outstanding morgage £143,000
debts around £60,000
been advised £21,000 is suffice for a full and final. Please advise?

I believe that the creditors are more likely to want you to make monthly payments for the 5 years, then remortgage at the end of it, this way they would receive more money.

One off lump sum IVAs would be suitable for people whose incomes are too small to make monthly payments.

You might want to consider inviting an estate agent round to assess the value of your property.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

You need to be very careful about offering a lump sum IVA in today's climate - where creditors are more likely to want you to pay five years worth of IVA contributions and then an equity release at the end.

In my experience, the days of lump sum offers from equity release in full and final settlement are long gone, and I cannot see why you would be advised that £21k is sufficient to offer, when you have equity which is almost equivalent to the amount that you owe.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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