ASSETS: Part 3 of 5.
WHAT ASSETS ARE SECURED CREDITORS ENTITLED TO TAKE?
A secured creditor is one holding a security over your asset. eg.
-a house subject to a mortgage with a bank.
-motor vehicle subject to a bill of sale.
-goods under hire purchase, chattel mortgage, lease or bill of sale with a finance company.
-real estate subject to a charge by local councils for outstanding rates.
A secured creditor cannot take an asset back just because you are bankrupt. However, if you fall behind in payments they can take and sell it whether you are bankrupt or not. If you are in doubt about whether one of your creditors is secured, you should first ask the creditor. If you are still doubtful, ask a financial counsellor or your trustee.
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