As you are tied to Eversheds, it's a shame your bargaining power is weaker than them. However, the Court may help you (though unlikely Eversheds will go there), in redressing the unfair bargaining power between you and the other party.(posted 7883 days ago)Re-assess your own income & expenditure situation. If you can, honestly, afford to increase your amount of the loan repayments then offer what YOU think is fair and amicable. £200 is a rediculous amount and no Court, I very much doubt, would award that figure as you have dependants. Also that's 100% increase, how do you budget for that.
Remember!!! If they threaten you with bankruptcy, and they should be careful presurising you in your current state (inform any stress to your Doctor, an ace up your sleeve to get them to back off), then Court may throw out any application IF they think your counter offer was a fair one, and they unreasonable refused to accept it.
One final point to remember, is it will cost them (in admin and what not) to pro-long it all out. If you think they are being unreasonable, then you can go to the ombudsmen (FOS) as they are like a free go at settling situations in a fair way.
Hope all goes well, the very best of luck
Geoff