House was repossessed in June 2011. It has recently sold and I have checked my credit report to find the mortgage is cleared and settled but on the secured loan there's a shortfall of £25k. In the meantime my wife has already gone bankrupt whilst I have a debt management plan set up for 16k.
Yourquestion: The 25k outstanding from the house is on a secured loan from the house. Will they chase me for this or Is there anything I can do to reduce this as my wife has already gone bankrupt and I am on a debt management plan. I am not sure if going bankrupt would be the easier option?
Answer: You can include the shortfall in the debt management plan, or look at an IVA if you qualify, however the shortfall will in all probability be the majority creditor and could reject any plan.
Bankruptcy is an option as the shortfall can be included.
I hope this has answered your question.
For more information and assistance, please complete our eligibility form at our web site www.bankruptcy.org.uk or ring us at 0800 690 6855.