Author Topic: Help with nightmare Picture Loan and possible house sell  (Read 2124 times)

juliec71

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Help with nightmare Picture Loan and possible house sell
« on: Oct 19, 2013, 03:22:55 PM »
Hi


6 years ago my husband and I took out a secured loan with Picture loans we also have a mortgage with NRAM.


Our monthly outgoings involved paying £1000 per month to NRAM and another £550 to picture.  It has all got out of control now and we have debts of 25k unsecured and Picture want 66k to settle their loan.


I have a DMP with Step Charity and have stopped paying picture now since June apart from £28 per month.


The mortgage outstanding is 134k and I think we could sell for 180k  does anyone think picture might settle for less?


My plan is to sell house and try to get them to settle for around 40k I would like to rent for a couple of years clear unsecured and try to get a mortgage later on again.


Any help would be appreciated totally stressed with it all :(

James Falla

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Re: Help with nightmare Picture Loan and possible house sell
« Reply #1 on: Feb 21, 2014, 09:50:00 AM »
Hi there Juliec71

I would be very surprised if Picture loans will be prepared to settle for £40k if they are owed £66k. Given that you have negative equity in your property of £20k + the £25k of unsecured debt and you want to get out of the property and move on I suggest the following:

You make arrangements to move out of the property into a rented place asap. Move and stop making any further payments to NRAM or Picture. You then instruct NRAM to repossess the property. You then declare yourself bankrupt. This will write off the £25k unsecured debt straight away and also write off any shortfall owed to NRAM or Picture when they eventually sell the property.

I understand that this sounds dramatic however I can assure you that it is a very sensible course of action to become free of your debt and property. I have worked with many people who have gone through this process. Given you no longer have a property to protect you will be no worse off bankrupt than you currently are in your DMP. In fact you will be far better off as you will be discharged in 12 months and you are only required to make monthly payments for 3 years max towards your debts and then only if you can afford to.
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