unsecured and secured loans does it matter?

whitey31

Hi,

Does anyone know if you only can have unsecured debt to go bankcrupt, as myself and OH have 5000 unsecured but 22000 secured against house which we are moving out from and giving up on long story.
I was just unsure if could go bankcrupt before house gets taken and sold as secured loan attached, as i would really like to do it sooner or later as i really dont think i can take much more stress.

Any advice gratefully recieved.

Thanks

dojoman

If you go BR, and you have a shortfall in your mortgage, or a secured loan against the property and the house has been repossessed or you have given the house up, when it is finally sold both any shortfall or secured loan then becomes unsecured and goes in to the BR. But in no circumstance sign anything to say the shortfall etc is your responsibility. Sorry if I have not worded that very well, but hopefully someone can either confirm that or correct me if I am wrong.

skylight

Once the property has been repossesed and sold on, then anything secured will become unsecured and will go into your BR pot, even if you went BR several years before. But expect the secured people to chase you for the money in the meantime as they can; which is pointless as they cannot repossess a repossessed house.....!! So just don't give them your new address or contact details, just your ORs details when you go BR.

And as mentioned NEVER SIGN ANYTHING from secured lenders. Some agreements etc have small clauses in that make you liable for the shortfall after your BR and its not worth the extra hassle.