Bankruptcy after Mortgage Rescue

strawberryblonde

Hi

My DH and I are currently going through the MRS. We will have a mortgage shortfall of approx 30K. We also have unsecured debt of about 35K. Our intention was to go BR when the MRS had gone through. However, when I just reread through our letter from Shelter who helped us with the application, it says do NOT sign a shortfall agreement if you are intending to go BR as you could be subject to a Bankruptcy Restriction order.
Our solicitor wrote to us on Friday to say that Santander were saying we had already signed a shortfall agreement to repay at £100 per month. (This figure was arrived at by Shelter when they helped us with our MRS application.)
Since then our income has decreased again- bloody Tax Credits- and our "spare" income is only £27 per month.
Also, Santander said that they would not give our solicitor a copy of this signed agreement. To our knowledge we haven't signed anything but I am no panicing in case we have unwittingly signed something. In all of our paperwork I can find nothing about this- surely we would have a copy. I feel like I am going mad!

What I am worried about is if we don't sign the shortfall agreement then the MRS won't go through. If we do sign it we can't go BR and we will have debts of 65k to pay and not be able to meet the payments. We are currently only paying token payments to our unsecured creditors.

Anyone have any advice? I feel sick with worry. Just waiting until I can speak to the solicitor and remembered this thread on the MSE Forum.

debtinfo

Why not inform the bank that you do intend to go bankrupt and therefore wont be paying the shortfall but still wish to proceed with the MRS on thar basis