Panicking about Debt?

Being in serious debt and worrying about potentially losing your home is understandably a very worrying time. Here are some options that could help your situation.

IVA or Individual Voluntary Agreement:

An IVA or Individual Voluntary Agreement is an arrangement made between the debtor(you), and his creditors. This is a legally binding arrangement that will allow you to write off up to as much as 75% of your total unsecured debt.
Using an IVA will allow you to come to a compromise with your creditors so you can settle your debts within a fixed yet reasonable period of time; the IVA will also allow you to avoid bankruptcy.
Any individual who intends to make an IVA proposal to his creditors may apply for an Interim Order. An Interim Order prevents all the creditors covered in the IVA from starting any legal action against you. If in any case legal proceedings have been started, these will be frozen and will remain at that certain stage.

You can ask for expert advice on IVA from several organizations that offer assistance in doing IVAs and other debt management solutions.

Informal Repayment Plan

An Informal Repayment Plan is an agreement between the debtor and his creditors wherein the amount the debtor needs to pay is reduced to a more affordable amount payable monthly.
The Informal Repayment Plan is not legally binding on your creditors, in other words they can back out whenever they want.

Bankruptcy should be the very last option you consider when trying to solve your debt problems. It may seem like a quick fix, but you need to be aware of the downsides to bankruptcy first!

If, however, you do decide to declare bankruptcy:

You will no longer be required to pay your creditors and;
You will be protected from your creditors if they threaten to take action against you.
If you file for bankruptcy, your assets such as property shares and anything you own that is of real value may be sold off in order to repay your creditors.

The best possible option would be to enquire about an IVA (if you are eligible), and after talking to an IP/Debt Counsellor for expert advice. This way, you avoid declaring bankruptcy (and associated stigma) and your credit rating is assured to be repaired once you have successfully completed the terms of your IVA.