Advice Please

[Sancho]

She shouldn't go bankrupt. Give the house back to the lenders, mortgage gone. Mortgage the field to the value of the outstanding loans, pay those off, live in the caravan in the field, pay off the (presumably much smaller) mortgage monthly until things pick up again.

[hellmett]

Re

I really suggest you go here:-

Consumer Action Group

They REALLY help a lot of people including myself through financial trouble.

Don't panic, usually Bankruptcy is the very last thing to happen.

Please look into what's known as an IVA (Induvidual Voluntary Agreement),

An Individual Voluntary Arrangement - IVA is a formal agreement between you and your creditors where you will come to an arrangement with people you owe money to, to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe then generally after 5 years your debt is classed as settled.

You lose nothing and your creditors are generally "obliged" to accept what you can afford to pay!

I can't really stress enough how important it is to take "Qualified Expert" advice.

[mack]

mate i know someone who used to work for the government agency that deals with bankruptcy. give me a chance to speak to them and i'll see what they say about your aunts situation.

[Philip]

Although not an expert, i have helped many friends over the years As she has only missed one payment, i would send a letter stating that due to to her economic situation at the moment, she can only afford to pay X amount per month. Send a cheque for that amount, must be a cheque, as if they bank cheque, then it means that they accept your offer.
Other advise given seems good to me, except selling to a friend for a low price.
Hope she will be OK