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Jointly we have unsecured debts totalling approx £110K. We have equity in our house of approx £100K and exquity in another property of approx £60k. We are thinking that the only solution would be to sell both properties, pay off our debts and start again debt free. We overstretched in every way possible financially, mortgage, credit cards, loans etc. With this much equity if we went down the route of a lump sum IVA would the creditors look for most of their money back as we have so much equity

Hi sharon

As you are not insolvent, an IVA is not an option for you. My advice is to sell the properties and then try and effect deals with the creditors to accept a lower sum for early settlement. This should leave you with sufficient monies to place as a deposit on a new property and be completely debt free.

Alternatively you could perhaps consider a re-mortgage of your home and the sale of the investment property which might raise enough cash to repay your creditors.

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