Does your figure include a possible 12 month extension in lieu of any equity at the end? Where would the funds be coming from?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
OK -- for that sort of debt your creditors are already taking quite a hit, so that reduces your 'wiggle room' a bit and I would think that an offer close to the £9.5k -- maybe £8,500 or £9,000
Alternatively --- if you can prove that there is likely to be less than £5k equity, so the release clause would definitely not be triggered, you could reduce this by the 12 extra payments. So your proposed £7k looks more like it.
Personally I would state that equity release will be unlikely, but, in the spirit of compromise you are willing to include the 12 months in lieu in the basis of your offer ( suggesting that creditors might get more by accepting the offer now ). This, of course, assumes that you would be willing to offer something like this amount.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk