Hi I would very much appreciate any advice given on how to handle my financial situation.
I took out a Trader up Mortgage some years ago, this product enabled me to get a bridging loan to purchase the house while I was waiting on my first home to sell. There was an accepted offer of 330k however this fell through within 3months and I was left with the bridging loan debt (and the house)
I tried my very best to keep payments up by renting to pay the interest only payments @ over €1k pm however I eventually succumbed to bank pressure to sell in 2013 when my husband was made redundant.
The house was sold for a approx 100k leaving me with residual debt of over 200k, at that time they agreed to park €180k and commence payments on loan of 40k (I signed new credit agreement to do this)
Last year I made the decision to take a voluntary redundancy package and spoke to the bank about my options, after some negotiation they told me that they would take 70% of my package but would not agree to write down any of the residual debt however they did agree to park it for a couple of years to allow me time to get a new job on condition that I sign a new agreement and submit annual reviews.
I received this lumpsum at the end of November and my doctor advised me not to sign a new agreement until I get proper advice, I have put these funds aside.
I understand that to go down the insolvency/bankruptcy route I will lose my qualifications however I am prepared for this in order to get closure as I am now going into my ninth year of this debt hanging over me.
I have read up on some options; am I correct in assuming that the DSA/ Insolvency routes will not be an option as this bank is my only creditor and they have made it clear they will not writedown any debt therefore forcing me to go down the bankruptcy route? I would also appreciate opinion on what could possibly be the worst case scenario if I decided to stop engaging with the bank.
My main concern is keeping my family home, I pay my mortgage every month, the house is in slight negative equity (approx 20k) but this does not concern me.
I am married with 2kids and the debt & mortgage is in my name only.
Many thanks in advance for any advice.
Last edited by a moderator: