Sorry I'm late in replying Paul had a busy day.

The thing with IVA's is that your debt is reduced massively but you are credit barred effectively until the IVA has run it's course. This would look beneficial if most of the creditors agree to the settlements. It is possible to re-mortgage for the total amount if your credit report is still intact, but my worry would be although you may retain a good credit status the possibility of a default on the mortgage would really cause you and your family real misery. So based on the figures you have revealed the IVA route should be considered. Debt management is a poor alternative as you will pay for ever and the fees are astronomical sometimes.

Hi Ian,

No problems.

The house is valued at £200,000 with a mortgage of £169,000 with 27 years left (we just done 3 years interest only).

Creditors as follows

Barclays Bank PLC 1 £500.00

Next £190

Natwest RBS 5314.68

MBNA 21,271.36

Nationwide £4185.11

Barclays Bank PLC 2 £200

Capital One £2200

Egg £15000

MBNA 2 £1466.67

Hitachi Capital £700

Barclays Bank 3 £4200

Barclays Bank 4 £4399.28

Barclays 1, 2 and 3 are Bank Account Overdrafts and Barclays Bank 3 should read £5000

The rest are Credit Cards or unsecured debts e.g. stores or Hire Purchase

Income and Expenditure shows I have £197 to pay my creditors so that needs to goto a DMP or IVA........

I'm mortgaged via the HSBC and I've not p*ssed them off yet but there's always a first time for everything I spose.

Hi Paul,

Firstly a well conducted IVA will allow some lenders to re-mortgage you, I hope that helps? I am going to assume that there is a lot more debt than the mortgage in lieu of your earnings. Your income although from a threatened industry means that you have the immediate ability to meet these new commitments. The decision to accept an IVA is not to be taken lightly and I would suggest speaking to a mortgage broker just to ensure that there is no other avenue for you. Is it possible to divulge the amounts that you owe and the value of your property?

In respect of your equity, your responsibility is for the full amount I'm afraid not just your share, your sons savings are ok though. I am cautious in respect of IVA's as they are non-regulated and can be wrongly advised upon, so please exhaust all other avenues before deciding.

Some facts to start me off.

I'm employed in an unstable environment at the moment but my salary is good and I also have Income Protection. My salary pays 55k per annum before tax.

I owe 59k and with my mortgage I can't afford to live so have informed my creditors I cannot pay them and have contacted Payplan.

Payplan have given me two options:

1) IVA paying £200 a month with a remortage in 4 years and giving up 75% of the equity

2) Paying £200 a month in a DMP for about 25 years.

Surely if I choose option 1 my mortgage company in 4 years time will tell me to do one seeing as I have an IVA? If I can't remortage or don't have the equity then what happens? Can they make me and my children homeless?

Seriously why would a mortgage company let you remortgage with an IVA on your head????? I don't get it (sorry random waffle there).

If I do go down the route of option 1 and then have problems with my job (dismissal - I'm in sales and it can be tough at our place) then what happens?

The mortgage is in both my name and my partners where as 90% of debts are in my name does that mean they're only entitled to 75% of the equity of my share?

Are my sons savings ok as they are or will they sniff around those? It's only £800 or so but still it's their money.

Can anyone offer any help???