VOLUNTARY BANKRUPTCY

C. DEBTS AND CREDITORS. PART 5 OF 5.

SECURED CREDITORS hold security over your assets which entitles them to take and sell them if you fall behind in payments e.g.
-banks with a mortgage over a house.
-finance companies with a chattel mortgage, lease or bill of sale over a car, furniture or electrical goods.
-hire purchase arrangements where you have not paid the full amount.
-creditors secured by government legislation over houses and land, such as council/shire rates and water rates.

If you become bankrupt, secured creditors may contact you to find out what will happen to an asset. You may be able to make arrangements to keep a secured asset. However, you should talk to a financial counsellor or bankruptcy trustee beforehand.

Some creditors may retain ownership of items purchased from them until their debt has been paid in full. eg. sales subject to retention of title clauses, goods on consignment or commission.
Creditors holding a security deposit or bond e.g. landlord are entitled to keep it to reduce your debt.
If you have difficulty working out your debts and creditors, you should talk to your creditors to ask whether your debts are secured. You can also talk to a financial counsellor if you are unsure about what types of debts and creditors you have.