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By rockbottom
#217054 Have been looking through your posts and decided to join as I could do with your help.

Basic situation - Husband became ill in 2007. Prognosis of 5 years. I contacted everyone I owed money to and set up reduced payments. I also, probably foolishly, changed my mortgage to interest only so I had some money left each month to pay off my debts. Despite help from family things are now getting bad and some of the people I owe are referring me to Debt Collection Agencies. I have never disputed that I have to pay and have sent more than I can realistically afford.

I contacted payplan last week and as I have equity in my property they referred me to a specialist mortgae broker - today I heard I could not remortgage. I have a mortgage (interest only) of 126k with a secured loan on top of 19k. My debts are around 26k and after doing an I&E I have £202 per month to offer against my debts.

Should I seriously consider an IVA? Will my creditors accept my payment considering I have already been paying reduced amounts for over 2 years? I currently pay, thanks to hand outs, around £388 per month.

Sorry to go on but I am at my lowest ebb and do not want to add to my husbands stress by being forced to sell the house :( Thank you to anyone who can comment
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By moaner
#217056 sorry to hear about your hubby, I think you need to put yourselves first, not the creditors

First off, how much do you think your house is worth, realistically? you need to work out how much equity you have

If I were you, I would get the mortgage put back to repayment ASAP then work out a realistic income and expenditure (without having to rely on anyone else giving/lending you money) to work out your realistic surplus income, and then take it from there, whether it be DMP, IVA or even bankruptcy
By rockbottom
#217061 Thank you.

House is worth approx. £180k according to latest info on Zoopla.

Trouble is if I go back to repayment mortgage I will have nothing left for creditors and then they'll make me sell anyway I guess.

I will speak with payplan again to see what they suggest. I really appreciate you taking the time to reply :D