Interest owed on a secured loan after repossession

GG_You

Hope someone can help?

At the start of this year the house that I owned with my ex was repossessed.
After the sale of the property last month the mortgage and the first secured loan we had was paid off in full.
The remainder of the money went to our second secured loan . The amount of this loan when we took it was for £10,000.00 and the amount of money that was sent to the company was £11,500.00 , therefore paying the loan off.
When we originally signed for the loan I think the interest that was added on was for £8000 (?).

As this loan has been paid to we still need to pay the interest ?

If we do still have to pay the interest can the amount that is still owed be split between us both .... I have a feeling that he won't pay anything and I don't want to be the one who has to pay it all on my own as I know he has a lot of debt with his bank and wants to go bunkrupt ?

Tixy

You need to establish what the balance was at the date of repossesion. If you had missed payments and had arrears or if there were early settlement charges then it may be that the £11.5k was not sufficent to cover the debt. It would be unlikely you would need to pay anything like £8k more but if there is a balance and its not being paid it could be increasing.

You could check your credit files (£2 each from experian & equifax and maybe call credit) to start to see if this debt shows as settled or still with a balance. Then you may need to write to the company involved and ask for a balance, or ask for confirmation that this was paid off in full by the funds from the sale of the house.

As to who would be liable for any balance, well you would both be equally liable for the whole balance. in practice they will chase the person most likely to pay and most able to pay. If he goes bankrupt you would certainly be required to pay the whole amount.