Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By James Carlton
#472427 On house valued at £135k, I have mortgage of £55k outstanding, as well as secured mortgage reserve overdraft on Barclay current account of £22k, plus secured loan with another lender of £22k.

I am aware that these secured loans cannot be included in the bankruptcy.
But I wondered, will the secured lenders still be informed of my bankruptcy.

Once they are aware of my bankruptcy can they repossess house or force sale of house?
Or is it simply that so long as payments are made to them as per schedule, then they will have no interest.

Any help appreciated. The answer is probably obvious, but this is just something that crossed my mind.
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By JaneClack
#472431 As long as you can make the payments to the secured charges - including reducing the secured overdraft - then your property is not at risk. However, take into consideration whether you can in fact afford to stay in the property as sometimes the OR/Trustee questions the viability of this.
By James Carlton
#472432 Thank you Sarah.

We are convinced we can stay in house and my wife buy back my equity.

But can the OR insist that we can't stay - even if the payments are being made and the equity able to be bought back.
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By JaneClack
#472435 Every case is individual so we cannot say - basically it depends on whether it is affordable as I said before. Your wife's income is nothing to do with your bankruptcy but the OR will want to see that the payments to it are feasible - if your income does not cover the outgoings you have plus all the secured charges they will want to be sure that the payments can be made. If you are sure then I do not think you have anything to worry about but in all cases of bankruptcy you should seek advice - this could be contacting an organisation such as the ones in our signatures beneath or visiting your local CAB. This is one of the questions you will be asked - have you sought any advice? The forum is not enough as we do not know enough about your circumstances and it is not the appropriate place to do so..
By James Carlton
#472440 Thank You Sarah.

The reality is that the combined monthly mortgage / secured loan / overdraft payment would be about £740 - approx the same amount of money - perhaps less, actually - than it would cost to rent.. So continuing secured payments would cost no more than being forced to rent.

Would this be taken into consideration?
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By JaneClack
#472441 It certainly would so it does not sound as if you have anything to worry about. Do get some advice from one of the free debt advice companies below or see a money adviser at your local CAB so you can say you have looked at all options.