Negative Equity

insider66

if you are in negative equity you will be able to keep your house by going BR, but, you will need to repay the secured debts, as normal. The secured loan would not force the sale of your house, as the other secured loan (your mortgage) would have to be repaid first if sold, not the secured loan, leaving nothing to repay the NR sec'd debt.
Be aware though, that your unsecured creditors may apply for a charging order on your property for the unsecured debt, meaning you will have to repay all your debt, both secured and unsecured when the house is sold in the future - giving you no benefit from going bankrupt.

insider66

Deep_In_Debt wrote: »

Not sure on this and others may correct me, but I thought a secured loan becomes an unsecured loan if you go BR so it will be included in your BR.

Please feel free to correct me.

a secured loan only becomes unsecured when there is nothing to secure it on.
if you still have the property then the secured loan will always be secured on it