if we go bankrupt what happens to the secured loan on the house we are in a lot of dept and strugglig topay the loan, morgage and credit cards we have gone with a dept management sceme but still carnt manage we have 3 children and carn,t see any other way out ,we have been offered a house to rent from friend which is a lot cheaper but dont no what to do about our house and the secured loan, please can you give us some advice thanks Pete
Your secured loan is no different to your mortgage and 'outside' of the bankruptcy - that is you have to maintain the payments or risk losing your property. If you make the decison to 'hand back' the property and rent alternative accommodation, cease payments on the mortgage and the secured loan and when completing the forms for the court list the mortgage and secure loan details on tha appropriate page and also list each of them (the mortgage and the secured loan) for £1 on the page where you list your credit cards etc (your unsecured debt information) following bankruptcy the property will be repossessed and any shortfall following sale will be included in the bankruptcy. This enables you to 'walk away' from the potential debt from repossession
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
if we go bankrupt what happens to the secured loan
Posted - 10 March 2009 : 12:35:45
