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The Bankruptcy Service Case Study Example: Bankruptcy & Secured Debts

The following bankruptcy case study is a fictitious example, designed to help you understand working situations where bankruptcy is and isn't appropriate.

A look at extra debts discovered since bankruptcy.

In 2010 I was forced to close down my once-successful business and declared bankruptcy the year after. My house was retained by me and I learned recently that the official receiver has ended any interest in the property after a few years because of the negative equity. This is a great relief, but in changing the deeds I have noticed an extra charge form our bank on the property. After various enquiries I have now discovered that there is another £15,000 owed from a secured business loan, something I had always assumed was in my original bankruptcy estate. This charge has never been mentioned to me until now. What can I do?

Secured debts are not included in bankruptcy, so as you’ve been allowed to retain your property, the important thing is not to panic, but to work out with the creditor a plan for paying back this amount. It’s surprising that the creditor has not contacted you before, but they should be thankful of any effort on your behalf to start paying off the debt, and thus that should not lead to any further penalties or restrictions for you.

Free debt counselling and advice is also available from the Money Advice Service available at: doesn't charge a fee for its bankruptcy service, but receives remuneration from the partners that we work with in order to keep operating. Those partners must charge a fee to the customer to likewise cover operational costs, and this amount will vary depending on the solution offered, and the terms of the parner. For details of these terms, please refer to the website of the organisation dealing with your bankruptcy. Upon application with, we will forward your information on to one of our specialist debt partners. You will then be contacted, and you will be able to explain your case, and expert advice will be offered in order to ascertain the most appropriate debt solution.