If you have assets of almost as much as you owe to creditors, and are going to be offering a contributions based IVA with an equity release at the end, then it is likely that you will be offering 100p in the £, and some creditors do not like these types of arrangement. Take advice from your IP, but if you cannot afford to take out a higher mortgage, how are you going to afford ongoing payments into an IVA? Have you spoken to a mortgage broker with experience of this type of lending - there are some good ones who post on this site - to see if anything is possible?
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp