My Wife and I have recently separated. We have a joint mortgage on our home (where I still live with our children). We also have a secured loan. She has now advised me that she intends to declare herself bankrupt. Our home is currently in negative equity and I am aware that I may be able to buy back the title if I can continue to pay the mortgage, but what should I do about the secured loan?
Secured lending is exempt from bankruptcy, so it will not discharge you from your obligation to pay the mortgage and secured loan. If you fall into arrears, the mortgage AND secured loan companies still reserve the right to reposess and sell the property with you both being liable for the shortfall under joint and several liability.
Julian Donnelly Spokesperson for www.Bankruptcyhelp.org.uk Don't forget the helpline on 0800 078 9367
My Wife and I have recently separated.
Posted - 08 January 2009 : 11:32:29
