You could either go bankrupt, do an IVA, or even do a debt management scheme (DMP), although I don't recommend a DMP if it will take more than about 8 years to clear your debt, and that's with interest stopped and no charges.
Be aware that if you go bankrupt, you will lose your interest in your home, it will automaticaly pass to the Official Receiver, and if you are unable to buy back the equity after your discharge, the home would eventually have to be sold if there is equity in it. Your name and address will also appear in the public notices of your local newspaper as a bankrupt. You can read all about bankruptcy here
http://www.insolvency.gov.uk/guidanceleaflets/
guidetobankruptcy/guidetobankruptcy.htm
Under an IVA you can propose to remortgage your home in the last year of the IVA but you would also have to pay for 5 years rather than 3 in bankruptcy, and also pay a higher proprtion of your disposable income. IVAs aren't supposed to be cheap as they're meant to give a better return to the creditors.
If you would like to know if an IVA is suitable for you, we'd need to know how much you can afford to pay per month towards your unsecured debts, and how much equity there is in your home (After taking into account the secured loan).
Philip Beck -
www.freeivaadvice.co.uk
Licensed Insolvency Practitioner and IVA specialist
