Debts:
200K
180K Parked
40K subject to payment plan
Home
Value
NE: 20K
Assets
Redundancy
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 am married with 2kids and the debt & mortgage is in my name only.
.
Well done your doctor. Unless you were on some amazing salary the bank should have written down your debt when the property was sold. I assume you were paying a horrendous amount of interest on the bridging loan. The fact they parked so much of the debt demonstrates that you really had no spare money.
So the only asset you have is a lump sum, you are unemployed. Is your husband employed. You have nothing they can take from you other than your redundancy. How much is this, less than 100K ?
You are very fortunate that your home is in NE, you might not think it but it means the bank are wasting their time trying to get anything there.
You absolutely need to go see a professional advisor to find out your options. It might be a negotiation of some of your redundancy for a full and final settlement for example, without insolvency.
But I'd be looking long term, enough to pay the mortgage on your home, professional fees and money for a replacement car etc.
Does your job depend on your not being insolvent or bankrupt?
Rental income
Are you liable for tax? If you are, than the lump sum might also be better off being used for this too.
Worst case scenario
For you it can't be actually worse than the life I imagine you've been living up to now. Based on the facts you've posted the only thing they can go after is the lump sum. I'd be putting a bit here and there, post office, credit union, prize bonds, husbands account, or just spend it, if you haven't got it the bank can't get it