Are any secured debts included in bankruptcy?
If you have a car or other goods on a hire purchase or logbook loan agreement, the finance company will often cancel it when you go bankrupt. If they do you’ll have to hand the item back, but the debt will be included in your bankruptcy so there’ll be nothing more to pay.
In some cases you may be allowed to keep a vehicle or other goods bought on hire purchase or logbook loan. If you’re allowed to keep the goods, you’ll have to keep paying the debt.
Mortgages and secured loan debts are included in your bankruptcy if you:
- give back the keys to your home, also known as ‘surrendering your property’, or
- if your house gets repossessed
However, if you stay in your home, you’ll need to keep paying these as normal. If you don’t, the lender can repossess it.
Will joint debts be included in bankruptcy?