NRAM won't renew my payment arrangement...

[worried2013]

I've got an NRAM repayment account following us losing our house. ExH has declared himself bankrupt so it's been left to me. We or rather I have £80k outstanding and have a payment arrangement in place. They contacted me to do an income and expenditure and because I have other creditors who I make a minimum payment to they won't renew my arrangement without taking debt advice. However, based on what I owe them the advice I got was to o bankrupt which I really don't want to do. I'm managing to pay everything at the moment and can see their point that they want the lions share of what's left even though I've explained my plan is to pay off the smaller ones then increase my payment to them. I can't see how forcing me into bankruptcy is going to benefit anyone? Has anyone had anything similar? Bankruptcy terrifies me and I have no assets anyway, I lost everything including my car already :(

They did tell me a while ago that they will accept a settlement figure but whilst paying high childcare costs I just can't do it. They've been fine with that but suddenly they're not. I was told the arrangement I had with them was a good one previously. I don't know much about bankruptcy, what are the three year payments and how much will they take?

Thanks NatashaBee, it terrifies me and really is something I want to do everything I can to avoid for many reasons. I just wonder if they really would force me into bankruptcy knowing I have nothing, what do they gain? There is very little disposable income so if anything they'd be worse off.

If you don't mind me asking was yours voluntary?

I haven't missed any payments to them either

If I really thought I couldn't cope I could see it being an option, I realise its a massive amount but they are getting a monthly repayment and have done for 5 years. NR sold the house for 90k under what we paid for it, hence the shortfall. We'd also spent money on improvements so lost out big time.

I have very little other debt but as I said with childcare costs not lots of disposable income

How have things been for you since? I read online you can't have a bank account or anything

Thanks for your help NatashaBee, it's a major worry for me right now I suppose I've just got to wait and see what happens next

i think the problem is you need to make pro rata payments so the people you owe the most money too get the higher payment from your disposable income. if you sought debt advice or did a dmp thats what would happen. Its not in nrams intrest to make you bankrupt they will eventually sell the debt onto 3rd party debt collectors.
you should consider bankruptcy after of course you have had advice otherwise you will be paying this debt forever!
Bankruptcy is no longer advertised in the local press unless you are a company director so seek advice like op said bankruptcy is not as bad as you think xx

Hi All

i've an NRAM mortgage shortfall debt as well for about £88,789.52..mustn forget the 52p lol

has anyone had any luck settling this amount with a lump sum. i reckon i can offer them around 7k of savings.