Secured loan

fatbelly

sallymeak wrote: »

Hi

I will be having to declare bankruptcy soon due to our joint mortgage being on interest only and us not having the means to pay it back at the end of the term.

We have a secured loan against the property and I just wanted to clarify that this would be put in the bankruptcy as it’s secured on the property?

Sadly the house is in 40% negative equity so there is no chance of pulling it back.

Thanks

How imminent is the end of the mortgage term? Have you explored options with your mortgage lender?

Are you able to meet the contractual payments on the mortgage and the secured loan?

Do you have any other debts?

silvercar

We have a secured loan against the property and I just wanted to clarify that this would be put in the bankruptcy as it’s secured on the property?

In answer to your specific question, the mortgage and the secured loan eventually falls into your bankruptcy once the house is sold off. Until that point both are secured and therefore excluded. With no other debts, I doubt you could go bankrupt until the house has been sold.

there may be other options for you, but if you are definitely losing the home and it is in massive irrecoverable negative equity and you have decided to move out, then there is little point paying your mortgage.

pcoventry

RattyIrk wrote: »

BR is not pleasant but is something you recover from and is often better than the alternative. Get the debts written off, get through the bankruptcy and any payment plan and get on with life. You can then put it all behind you.

Agreed, I have been BR twice now - the first time after the 6 years was up ( and with some vanquis help along the way) I was back into mainstream lending - and then it all went wrong again - so it is possible but this time it will be cash or not having for me