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I am currently in 18 months into an IVA and have recently lost widowed parents allowance and child benefit amounting to £600 per month. I am in full time employment but I am no longer able to meet the demands of my IVA, mortgage and secured loan. My mortgage provider, Nationwide, has agreed to reduce the monthly amount for 6 months but Picture Loans will not help and after paying only part of the monthly payment due have already started writing to me about arrears and ringing me up. I was not in arrears on either account until then. My mortgage with Nationwide is for £170,000 and my Secured Loan with Picture is £90,000. The house is worth £210,000 leaving me in negative equity. I asked Picture to allow me to sell the house and pay whatever was left after paying Nationwide. The shortfall would then be repaid from my pension lump sum due in 4 yrs. They would not agree.

I am seriously considering bankruptcy as my only option.

I need practical advice on what I can do.

Can I move into rented property then go bankrupt and hand over the keys to Nationwide? Any practical suggestions would be great. Should I stop paying my mortgage/loan to help fund the bankrupty application and rental bond. I have seen a house and have submitted an enquiry but I don't know what to do for the best... HELP!!

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Not sure if I have posted this in the right place. Should it be under IVA/Bankruptcy heading? One other quetion I wanted to ask is should I wait to open a new bank account after bankruptcy. I rang Co-operative yesterday and they agreed to a basic account but I haven't yet switched or paid anything into the account. I will need to change at some point because Mationwide is my mortgage provider as well as my current account

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