If you have an endowment policy linked to your mortgage you may be expected to cash it in and use the money towards paying part of your IVA (Individual Voluntary Agreement). If your property has equity you may be asked to release it at some point, also to pay into the IVA.
After the period of the IVA is complete the debtor will be considered to be debt free, as some of the remaining debt may be written off. The debtor is then free to start a fresh financially.
Once the IVA is complete it is often difficult to obtain credit again for around a year or two after the termination of the agreement. However it is easier to obtain credit once your debt problem has been settled and many lenders will make a decision based on your successful completion of an IVA and what you can afford to pay.