Recent Loan With Bankrupcy

janjef

Hi was just looking for general advice or guidance with an issue. A friend of mine has taken out a £6k secured loan on her house and now her circumstances have changed just 2 months after taking out the loan. So she is considering bankrupcy. Her total debt is over £40k and her incomings are virtually the same as outgoings so there is no other option. There is now no collateral in her house.

1) Do you think bankrupcy will be approved?
2) Can the Courts or the Loan Company force her to sell her house even though this will render her homeless and she will have nothing from the house to go towards any debts.

Thanks

michael1983l

I think for 6k they are likely to put a charging order on it if there is no equity after that is taken. Meaning that they will have a claim to their 6k at any point in the future when the property is sold. I do not know that for sure, but that is what I understand off reading other posts in the past.

janjef

Ok thanks. So even though bankrupcy may clear all other debts this one would effectively remain in place?

Helpmeoutofthismess

Secured debts are not written off in bankruptcy unless they become unsecured, for example if the property is repossessed by the lender.

H x

janjef

Ok thanks for that further clarification.

tigerfeet2006

Please get her to ring NDL or Stepchange to get some advice on her situation. As the loan is secured it will not be included in BR.
https://www.nationaldebtline.org/EW/Pages/default.aspx


http://m.stepchange.org/

janjef

Ok yes I will do. Thankyou