bankruptcy

[jane.l]

I posted this here as I have tried to post in the Bankruptcy Forum and it won't let me! I was reading a post by (I think) DebtDummy and there was a comment about secured loans and bankruptcy, I was told by Picture that secured loans are not covered by bankruptcy so I understood that we have to wait until our house is either sold or repossessed, so forcing the secured loan to become unsecured, until we can petition for bankruptcy or we may have to do it twice??? Is this correct? the post I was reading mentioned that if someone goes bankrupt with no equity & a secured loan, the OR will force the sale and any shortfall to the secured loan company will be included in the bankruptcy? The thought of having to wait months stuck in some kind of awful limbo is really making me feel stressed, I have not slept for the last couple of nights, I was ok over Easter, but now the letters have started again, (we have re-directed the post from our house to the rented house we are now living in) Could we go bankrupt now?? or do we really have to wait until the house is gone? I think I'll try to get an appointment with Citizen's Advice in another town, as last time they were not very helpful, they might have a specialist debt advisor?

[MelanieGiles]

Hi jane

If there is no equity in your property, the OR will not force a sale - that will be left to the mortgage company or secured loan company, and this can only be done if you have more than 3 months arrears.

Picture already are an unsecured creditor, for the portion of their loan that is not covered by the remaining value of your property after taking account of the mortgage company's prior charge. Now you have moved out of the property, let the mortgage company and secured lender deal with possessing and selling the property. Picture can then claim in a subsequent bankruptcy if that is the route you decide to take.

There is nothing stopping you going bankrupt now - this will include Picture's unsecured element and you will not need to petition twice.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[DebtDummy]

hello jane.l, I just filed for bankruptcy on 3 April. Mel is right let the mortgage company and the secured loan figure out who gets what. You have been through enough with moving into a rental etc. Contact, the CCCS for professional advice regarding bankruptcy they are very good.

I was told by my OR to maintain the building insurance on the house and to hold on to the keys for now.

You can petition for bankruptcy now and any shortfall will be included in the bankruptcy. Just ensure you list the mortgage company as a creditor on the insolvency application.

Don't worry. There will be peace again in your life and you'll sleep quite soundly in the near future. Take care.

Good luck.

All I have left is my humour.

[MelanieGiles]

DebtDummy

Are you now subject to an Income Payments Order? If so, how much per month compared to your disposable income.

Sorry to ask but I am just doing a bit of market research of my own at the moment.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk