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Screensize: 640 x 480 800 x 600 1024 x 768 1280 x 1024 UserName: Password: Format Mode: Basic  Help  Prompt  Format: Font Andale Mono Arial Arial Black Book Antiqua Century Gothic Comic Sans MS Courier New Georgia Impact Lucida Console Script MT Bold Stencil Tahoma Times New Roman Trebuchet MS Verdana   Size 1 2 3 4 5 6   Color Black Red Yellow Pink Green Orange Purple Blue Beige Brown Teal Navy Maroon LimeGreen Message: * HTML is OFF * Forum Code is ON Smilies [quote][i]Originally posted by Sunshine_Girl[/i] [br]Hi I recently filed for bankruptcy and have a query about my secured loan which still stands. First, some approximate figures: Value of my home: £89 000 (valued by both Halifax and Whitegate’s) Mortgage outstanding: £78 000 (Cheltenham & Gloucester) Secured loan outstanding: £68 000 (Picture Finance) My secured loan currently costs me around £700 pcm in instalments, which are due to continue for another 23 years or so. As you can see, I’m in negative equity, so my home has not been repossessed as part of the bankruptcy. However, the OR has explained that, were I to stop making mortgage and secured loan payments, both these debts would be written off but, of course, I would lose my home. It strikes me that my secured creditor would lose out drastically if this happened, as most of the money from the sale would be given to my mortgage company and not much would be left for them. Therefore, is it feasible that I could approach my secured lender and negotiate a compromise on what I owe them, i.e. write off a large portion of the debt? They wouldn’t get as much back as if I repaid the debt in full but they would be better off than if they and the mortgage company repossessed and sold my home. I would appreciate some advice on this matter, as the monthly payments are so substantial that I am seriously considering stopping them and allowing repossession but, as you will appreciate, keeping my home whilst reducing my monthly instalments would be a much more appealing option. Moreover, do you know of any precedent to this proposal or other bankrupts who have successfully negotiated a reduction in the amount owed on a secured loan? Many thanks for your time RD [/quote]   Check here to include your profile signature. Check here to subscribe to this topic.