Secured loan

1bigmess

Hi all,

my first time posting on this particular forum and not sure of I'm welcome being a bankrupt and all:o

Anyway, my situation is that I went bankrupt in September 2008 as a result of a failed LTD Company. This was a franchise and I got stung to say the least. Partly my fault with lack of due diligence etc.

To buy this franchise I took out a secured loan for £20k against the house in joint names with my wife.

I have approximately 8 years and 11 months left to pay. The original term was 10 years and the monthly payments are £264. The interest rate is 8%. I now have an IPA, but can afford slight overpayments on this (it is the last trace of my doomed business and I really want rid!!)

If I started paying £75 per month extra and paid a lump sum of approx £5k in October this year, would this dramatically reduce the remaining term?? And before it is raised, no I didn't stash £5 before BR - I wish I could have afforded to!!!:p The money is inheritance from my wife's side of the family and she is not BR.

Thanks for taking the time to read. Hope I'm welcome here as a BR because when this is sorted I now want to attack the main mortgage. I've learnt a lot from past mistakes and now want to take control back.

CLAPTON

you dont owe anything on a secured loan.. you're bankrupt and have no debts.

however, your wife owes secured loan
whether overpaying makes financial sense depends upon the T&Cs of the loan..I'm afraid your wife needs to understand what they say... theres is no general rule

1bigmess

I am still paying the loan with wife. Yes BR, but we have been lucky enough to keep the house. I pay mortgage which is in my sole name and the secured loan which is joint names. If stopped paying house would be repossosed so I do need to keep paying. If i did stop house would be taken, there would be a shortfall and wife would be responsible for about £5k which would become an unsecured debt.