Get specialist debt advice immediately if a creditor asks you to agree to a voluntary charge on your property. A creditor can use a charge against your property to force its sale.
A voluntary charge is only in your best interests in very limited circumstances, for example, if you are terminally ill and won’t need the money from the eventual sale of the property, and settling in this way would save you stress.
You may need to consider this option if you think that your creditor is going to issue, or has already issued, bankruptcy proceedings against you. Get advice immediately if you receive a statutory demand. This is a notice that has to be served before bankruptcy proceedings can begin.
Voluntary charges can be written in such a way that a creditor is prevented from repossessing your house and that interest charges stop building up, but you will need specialist advice to achieve this.
If you have agreed to a voluntary charge on your property that also requires payments to be made, your home is at risk if you fail to make the repayments.