Mortgage shortfall - coming up six years ago!

pondering_life

Hi. Hoping someone will clear this up a bit for me or tell me I've been given the best advice.

I'll keep it as short as I can coz it is rather complicated...

My ex and I took out a joint mortgage in 2006. We split in 2007. Gave the house up for voluntary repossession. The debt we owed was in three separate lumps. The mortgage, a secured loan and an unsecured loan. While they were selling the house, my ex and I agreed to pay £50 each, monthly to cover the unsecured part of the debt. I only did this for about 4 months. I suffered a personal bereavement and to be honest - couldn't be bothered with the hassle from my ex.

The last contact I made with Northern Rock was September 2008.

There were rumours in 2011 that my ex went bankrupt but I have no idea if this is true or not. He isn't on the public register but he may have acquired a Tomlin Order as bankruptcy would have affected his job.

I have now (almost but not quite), 6 years down the line received a letter from Mackenzie Hall saying that they would like to speak to me in regards to a mortgage shortfall totaling just over £40,000.

I have spoken to citizens advice yesterday. He said that because this is quite an old debt, it would be classed as a "non priority" debt as they would be unable to evict me (I'm now renting from a housing association). He also said that LEGALLY they can chase me for 12 years for this mortgage shortfall but it is an unwritten rule that they normally would only chase it for six years.

I have some options now...
1) Ring them up and arrange a payment plan direct, which would involve me paying back £300 for the next 25 years.
2) Get and IVA
3) Go bankrupt
4) Do nothing unless a serious threat for a CCJ arrives.

The citizens advice advisor suggested that this may well be Mackenzie Hall just trying their luck to see if I would pay up. If I wanted to I could ignore them til I hit the 6 year with no contact line. Which would involve putting up with these letters for the next 2-3 month. And then hopefully they would stop. On the other hand if they go ahead and take out a CCJ against me I would be obliged to pay the full £40,000.

So really I'm left in a game of chicken. Do I try and out wait them? Will they really stop trying to pursue me in a few month when it hits the 6 year deadline? Or will I have to hide for another six years? Or do I just grab the bull by the horns and go for the IVA now?

I'm inclined to try and out wait them as this way it buys some time to save money in cash and at least I have a chance of not paying it. Either way, I suppose I'm more than likely going to end up with an IVA?

Anyone got a spare £40,000? Hahaha