Any thoughts Please

Lopez12

House worth 90K ? , interest only mortgage 60k expires in 2 years, Joint paragon secured loan ( 37k left ) expires in 2018
House unsaleable due to wall cracks and condition, other houses in street have sat unsold for months.
Will be retiring in 2 years at 60.
Hoping to move to rented property in a couple of months.
In dmp since 2005, currently down to 25K after PPI claims
Wife already retired on £60 per month pension.

Driving 15 year old car that cost £265 on Ebay
Any thoughts or advice ?

silvercar

Do you want to move to rented or not?

Lopez12

Yes we do want to move to rented,
Need to move 20 miles to be closer to elderly parents.

silvercar

So you move and the house can't sell either because no-one will buy it or because you can't get a high enough price that the secured loan people will let the sale proceed.

So, assuming you can't afford rent and mortgage and secured loan payments, you let the house be repossessed. The lender then sells and eventually the secured loan people start to chase you for repayment of its loan which is then effectively an unsecured loan.

At that point you agree a repayment schedule with them. Outside chance they make you bankrupt because if they do it still won't give them much money as you have little to give them.

Option B is to go bankrupt now, but I'm not sure you can if you are not insolvent at the moment and can afford your debts. But that would wipe out your DMP and the shortfall to the secured loan people in one hit. Whether you get an IPA to make contributions for 36 months depends on your income at the time.