Q on secured loan on property

Jo_Bla

Hi Guys, I am just firing questions here as I am not 100% sure what we will do, we are both (myself and OH) going BR next month.
I have a property which I rent out to tenants and this shall be repossessed (I have accepted this as I can not afford it if the tenant moves out).
My partner has a property which is our family home but his property is valued about 89k and owes 102k on the mortgage and he also has a 20k secured loan on this house, so my question is, if we decided to keep the property if we could afford the payments what happens to the 20k secured loan when he files for BR, is this still secured against the property or does it become part of the BR?
Also if say in 12 months time we find that we can no longer afford the property and decide on voluntary possession would the shortfall of the mortgage go into the BR (even if we have been discharged)?

Thanks in advance for your replies.;)

Jo_Bla

Does anyone have any ideas? please.

beentheredonethatstilhere

The secured loan is not included in bankruptcy as it is secured against hte house, you will have to continue paying it.

If you sell the house after AD then as the debt was incurred before bankruptcy it will go into the bankruptcy pot.

How much is the mortgage and sl? How much would a rental property cost?

skylight

beentheredonethatstilhere wrote: »

If you sell the house after AD then as the debt was incurred before bankruptcy it will go into the bankruptcy pot.

Not sure this is right.

If you keep the property and the mortgage then you keep the secured loan too - that will never disappear until paid off. It only goes into the BR pot if you are giving up the property.

beentheredonethatstilhere

When we were researching bankruptcy after our 3DC were born I asked the IS this question and they said if I got into trouble after AD and the house was repo'd and sold with a shortfall then it would go into the pot. Sorry I didn't make that clear in my other post.

Might be worth asking the IS if that is still correct Jo.

Jo_Bla

The mortgage payment is £620 Pm and the SL £280pm and a rental property would be about £500pm so I do think to move out would be the best option.
sorry if i seem dim but what does IS stand for?

peachyprice

If the house is repo'ed after discharge any secured loan/mortgage shortfall goes in to BR, if you SELL the house it doesn't.

HTH

skylight

IS - Insolvency Service

They have quite a good email question system so its always worth posing the question there.

peachyprice

Jo_Bla wrote: »

The mortgage payment is £620 Pm and the SL £280pm and a rental property would be about £500pm so I do think to move out would be the best option.
sorry if i seem dim but what does IS stand for?

Jo, as the house is such a large amount more than renting it's possible that the OR might ask you to either move out, or not allow the full mortgage and secured loan payments in your SoA.