Hi Lisaj
Firstly with regard to the mortgage, once you miss more than three payments this gives the morgtagee company the right to commence possessory proceedings against the property - so this could lead to an eventual eviction and sale unless you deal with the situation. Mortgage payments should always be treated as a priority payment if you want to hang on to your property.
With regard to your other debts, if you are unable to continue to pay these you effectively have three options as follows:-
1 Try and get creditors to agree to reduced payment terms until the debts are paid off in full - commonly referred to as a Debt Management Programme.
2 Enter into an Individual Voluntary Arrangement, where you pay affordable contributions for a maximum five year period, with a possible equity release at the end, following which all remaining debts are written off.
3 Declare yourself bankrupt.
In any scenario, your usual domestic possessions are disregarded and left with yourself to retain.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
For further details contact me at
http://www.melaniegiles.com and view my IVA blog at:
http://melaniegiles.blogs.iva.co.uk
