Do I contine to pay my secured loan whilst applying for bankruptcy?

[TheSleepFairy]

I'm in a failing IVA, really struggling with it & after seeking more advice it looks like bankruptcy is the only option left.

I'm behind with gas & eletric but have struggled to still pay CT & the secured loan but today I've been told by an advisor to stop paying the secured loan whilst applying for the BR.

The house is in neg equity.

It's £300 a month so that would be like winning the lottery right now but I don't want to cause any extra stress with threatening mail/baliffs as I don't think I could take anymore right now.

If you stopped paying the loan I think you'd be expected to put it towards the utlilites. tbh by th sounds of it the house is at risk already :( Who sis "advising" you ?

I stupidly went with a company that wanted payment for their help.
I was so desperate & really didn't have the first idea about all the free help that is available.

I have paid them £500 a month for the last year & we are in a worse state now then when I first asked them for help.

If I cancelled the secure loan the first missed payment would easily pay off what I owe utilities.

Why do you think the house is at risk already?

Late bump

I could be wrong but surely your house will be repossessed as part of the bankruptcy? Before applying for the bankruptcy or missing payments or anything, please speak to the CAB or CCCS to get some better advice, they may be able to do something like help you to reschedule the IVA, and will not simply be looking to make as much profit from your situation as they can - unlike some (admittedly not all) of the companies who charge for this service!

If the loan is secured against your house and you can't/don't pay it then the creditor can force you to put it up for sale. Is there a mortgage as well, they will have first charge over the property if so ? Sorry but it sounds like you have had poor advice for your money and should contact CAB or CCCS urgently :(

Who is advising you now?

have you been in contact with cccs or a similar charity who help and advise with debts for free?

We are being advised by Freeman Jones.

I am planning on speaking to cccs & we can & have afforded to pay the mortgage & secured loan, it's just everything else that has become out of control

The simple answer is yes if you want to have any chance of keeping your house. You may not lose it in bankruptcy if you are in negative equity. You must contact National Debtline, CCCS or the CAB.