Bankruptcy & Logbook Loans

jackdaniels76

Morning all,

I declared bankruptcy at the end of September and at present most creditors are aware of the situation.
I do however have a loan with Logbook Loans which is secured against my car.
The car has been off the road since May as the cambelt has gone and LBL were made aware of this fact and that I could not afford to repair it.
When speaking to the OR she advised that she was going to arrange to have the car scrapped and so end the LBL saga.
LBL however have advised me that I will still need to continue to repay the outstanding loan as it is secured against the car.
My thoughts though are that the loan would become unsecured once the car has been scrapped, therefore making the outstanding balance inclusive within the bankruptcy.
The OR is thinking along the same lines however she is not experienced with Bill Of Sales and is investigating further.
I would appreciate any of your thoughts or comments on this, especially those of you who may of experienced something similar.

Many thanks.

fermi

jackdaniels76 wrote: »

My thoughts though are that the loan would become unsecured once the car has been scrapped, therefore making the outstanding balance inclusive within the bankruptcy.

Correct.

HTH