Repossession

If you have missed several loan repayments on a secured loan and have also failed to communicate your situation to your lender, your home or other secured asset will be at risk of repossession. This is because the loan contract you signed agreed that in the event that you could not repay the debt, the lender would be entitled to the asset specified in the contract. If you are worried about your home being repossessed, get in touch with your local Citizens Advice Bureau, where they will discuss any measures you can take which will decrease the likelihood of that occuring. If necessary they may also negotiate with your lenders on your behalf and help you find someone to represent you in court.

Even if you have an unsecured loan, your property could be at risk if you fail to keep up repayments; in the event that your lender takes legal action to recover the debt, your assets including any money you have in the bank may be seized and sold to repay your debts. You may find yourself in serious financial difficulties or even facing bankruptcy: for these reasons it is vital that you make every possible effort to make your repayments each month.