Bankruptcy and a Secured Loan Q?

Annie_Johno

Hi people. Isnt it funny when you get talking to people how many people are in the same situation. I was chatting to somebody last night about BR etc and he said I have the papers at home. He asked me a question and I wasnt sure of the answer can any of you guys answer it?

He has not paid his mortgage for 3 months, his flat is being repossessed end of August (court hearing fixed), he has a secured loan on his flat and he is not working, therefore no income.

Should he go BR now before going to court, and will the secured loan become part of the BR?

Can anybody help?
Thanks all

skylight

If he is giving up the home, then yes, the secured loan will be included in the BR. It does not matter at which point he goes to court for BR. Some would suggest after as it simplifies matters.

He needs to discuss with Payplan or CCCS first as the judge in court for BR will ask him if he has had professional advice - BR can be declined if he has not.

Annie_Johno

Thank you.
he didnt say he was giving up his home, but he did say once the repossession hearing takes place, can he then stop in his flat for at least a year until evicted? Does that sound right?
He said he has taken advice from CCCS but that was some months ago. I did tell him he should speak to them again everytime he has a question.
Thanks again

skylight

He can stop in the flat until eviction, but that may not be a year. It could be as quick as 3 months - in this current climate the bank is unlikely to hang around. But the secured loan is still included.

It may be better for him to get a new place pronto though. Letting Agents tend to do credit checks and with BR on his file may find it more difficult or they may want a bond - 6months worth as a deposit. It may be easier to get somewhere else first. He is not priority for social housing either as repossession is classed as making yourself intentionally homeless.