We have two charges against our property. One for a personal loan and one for a car loan. We have some equity in property but if we go bankrupt what will happen to the these if there is insufficient mones to pay them off after the house is sold?
If there is equity in the property then it would be used by the OR to pay all creditors and not just those that are secured on the property.
If there is an insufficient amount from the sale of the property then the rest of the debts would be written off. If you were eligible for an IPA then this money would go to the creditors as well once the OR has taken their fee.
All secured creditors will be paid first from the sale proceeds in their order of priority. Any balance they have unpaid, will become an unsecured claim in the bankruptcy.
We have two charges against our property.
Posted - 09 June 2009 : 13:23:59
