Secured Loan advice needed!!

scaredsinglemomof2

I have read somewhere on here that a secured loan cannot be included in bankruptcy?? Im totally confused can someone help!!!!

Thanks xxx

JCS1

Secured Loans and mortgages are not included in BR. However, if you sell the house and there is a shortfall, or you let the property be repossessed, then the secured loan becomes unsecured and does go into your BR.

larzie30

Now I am confused if you can't include secured loans etc how can they force people out of their houses. I thought that IVA you couldn't included secured/mortgages but BR you can? Any clarity out there?

xxx

Feelingfoolish_3

Secured debt (mortgages and loans) are not included in bankruptcy as long as they remain secured. So, if someone wants to remain in their property (and allowed to) then you must keep paying these debts.

If someone chooses to let their house go then as above these debts are no longer secured and become part of your bankruptcy.

scaredsinglemomof2

im still confused!!! Im moving out of my house and sending the keys back to the mortgage company for it to be repossessed, i am in negative equity before the secured loan even makes an appearance so would i have to wait for the house to be sold before i can include the shortfall and the secured loan in my bankruptcy or can they be put on the forms before all this happens??!!

Sorry for being thick but im trying to make sure i understand it all!!

Feelingfoolish_3

Any shortfall from your house WILL be included in your BR and no you dont have to wait for it to be sold. Basically any debt you incurred, including your mortgage and secured loan prior to bankruptcy is included. Hope that is more clear

scaredsinglemomof2

Thank you, yes it is, think i must have been tired last night as it makes much more sense today!!!