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Irene.8
Starting Member
11 Posts |
 Posted - 08 November 2010 : 15:29:01
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| do we legally have to pay a secured loan that was included in our bankrucpy 2years ago we still have our own house as there was no equity in the property, the secured loan lender is makeing us pay the full monthly amount and a substancial contrubtion to the arrears, which is so much we can hardly feed ourselves what can we do they wont listen to reason |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 08 November 2010 : 15:47:21
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Your bankruptcy dealt with your unsecured debt - any secured debt on your property (and you still have the property) must be paid or you risk the secured lender taking steps to repossess the property.
Unless the property is sold and the secured debt cleared, or the property repossessed YOU MUST maintain payments to any secured loans they are NOT included in the bankruptcy, failure to do so would put your home at risk
Melanie Nicholas
29 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
telephone 01792 899996
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Irene.8
Starting Member
11 Posts |
Posted - 08 November 2010 : 16:23:40
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to be honest with you Melanie.n I wish they had taken the house sometimes as we dont seem to be any further forward, the property has not enought value to sell and pay off mortgage and secured loan and when we tried to sell before going bankrupt the secured leander blocked it
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RHB
Senior Member
1159 Posts |
Posted - 08 November 2010 : 17:02:51
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| Is it in negative equity? I'm guessing so, & tbh you might be better off renting & letting the house go if you really can't afford the payments & stop your mortgage & loan payments. |
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Irene.8
Starting Member
11 Posts |
Posted - 08 November 2010 : 20:41:16
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To all the people out there who lost their house in bankruptcy I hope you dont think we are not gratefull to have kept ours but it does mean that the nightmare continues and will do for another 13years with no way to change it, if we were on our own we would but we have dogs and not a lot off rented acc allowes them,thanks for the reply i suppose its just normal life and we're not alone .
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Irene.8
Starting Member
11 Posts |
Posted - 10 November 2010 : 20:38:29
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If we do let the house go and they reposse it and sell it at a loss would they be after us for the shortfall, and would we be liable?
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RHB
Senior Member
1159 Posts |
Posted - 10 November 2010 : 20:54:11
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| NO, the shortfall would be covered in your bankruptcy. |
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Irene.8
Starting Member
11 Posts |
Posted - 10 November 2010 : 21:10:19
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we've been discharged for over 1year now, would it still apply or would we have to go bankrupt all over again.
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 10 November 2010 : 21:19:19
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regardless of when it is repossessed any shortfall that was there before BR is a debt that will be covered by your BR discharged or not.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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Irene.8
Starting Member
11 Posts |
Posted - 10 November 2010 : 22:45:50
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I suppose its the stigma attached to all of this, we've been in this house for 21years and you dont want the embarassment of neighbours knowing your broke,so you struggle on and keep quiet.
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 11 November 2010 : 22:47:32
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Post a bit more about your housing issues and I will see if I can assist.
Let me know what arrears are outstanding (roughly). Is it a repayment or interst only mortgage - is it in your sole name or jointly owned - who have you spoken to so far about any arrears? ave they started possession action - and anything else - I will come back after you have posted again Richard
"There are no problems - only solutions" |
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Irene.8
Starting Member
11 Posts |
Posted - 13 November 2010 : 10:37:08
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Hi Richard This is a long story but will try to give you the basic out line. when we got in to financial difficulty we went to a council based help service, they advised us to try a scheme where the council buys your house and then rents it back to you,sounded just what we needed, we were approved by the scheme and started the process, 1year later we still didnt have any thing sorted mainly because of our secured leander who is First Plus they wouldnt anwser calls or letters then they said the repairs that the council put in were to high, they were allowed 7,000 to put in new heating and such like which they sighted allthough the property is in a high standard of repair.During this time we stupidly stopped paying the morg and secured loan , then we went bankrupt
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Irene.8
Starting Member
11 Posts |
Posted - 13 November 2010 : 10:49:31
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this is a contuniation of previous of pervious reply they didnt take the house because of neg/equity we were getting scared by this time and told the council to forget the buy to rent, and I phoned the mortgage provider and arranged to start paying they were great and after 6months the swallowed the arears into the mortgage and changed it to an interest only to drop the payments for us and we have been paying it ever since, on the other hand the secued lender First plus were the not so helpfull they wanted full monthly payments £447 plus £150 arrears every month we just cant afford this and all the other bills, in fact we paid it for 9 months with a payin book and they said we had only paid £400 towards the arrears which is £7,000 you cant talk to anyone its a law firm we go through and they never anwser our letters,I sent a photo copy of all the stubs from the book and there is about £600 missing I just feel we will never get out of this mess
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RHB
Senior Member
1159 Posts |
Posted - 13 November 2010 : 15:11:27
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| To be honest it sounds as though you are always going to struggle. Have you actually looked at what rental properties are available in your area & for what price? The likelihood is, that in the future interest rates can only go up & that would place you further in trouble. How much longer have you got on the mortgage? And also, could you try again with the buy to rent scheme? |
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do we legally have to pay a secured loan
