Bankruptcy Secured Loan

A bankruptcy secured loan can assist with reducing the interest charged on a loan during, or after, bankruptcy.

A secured loan is a loan that is backed by some sort of security. In most cases, the typical type of security is a home. This is true no matter if the property is still mortgaged or owned outright.

Bankruptcy secured loans are available in varying amounts and for many different purposes, including debt consolidation. The amount available usually ranges from £3,000 to £50,000, although some lenders will consider lending up to £100,000 depending upon the value of your home. The amount borrowed is repaid monthly over a term agreed at the outset, which will usually range between three years and twenty five years. Typically you may be charged a penalty should you repay the secured loan earlier than first agreed.

Bankruptcy secured loan providers charge interest on the loan amount borrowed, which is referred to as the Annual Percentage Rate (A.P.R). The amount you can borrow, the term available and the A.P.R will all depend upon the equity you have in your property, the lender's view of your ability to repay the loan and your personal circumstances, for example bankruptcy, discharged banktrupt or adverse credit. Subject to your circumstances, you may be able to borrow up to 125% of your properties value.

Generally, secured loans are much easier to obtain than unsecured loans, especially if you are a bankruptcy or discharged bankrupt. This is because the lender has the added benefit of security, which provides protection in the event of a customer's inability to repay. This also means that persons who are self-employed, have recently changed jobs or who have adverse credit can take out a loan. They are also useful for larger amounts or where the applicant requires a longer repayment period.

Think carefully before securing any debt against your home. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. MISSING PAYMENTS WILL HAVE SEVERE CONSEQUENCES AND MAY MAKE OBTAINING CREDIT MORE DIFFICULT IN THE FUTURE.