Mike_B wrote:
> In message <1YednUUx6b200HvanZ2dneKdnZydnZ2d@bt.com>, Tim
> writes
>>"Lord Turkey Cough" wrote
>>> No point in offering him one as he doesn't want one...
>>
>>Then how would the borrower intend on paying off the
>>loan that he's just defaulted on, before the court makes
>>him bankrupt -- and the house (and other assets) are all
>>sold off to pay his creditors (including the unsecured loan) ?
>
> Why would the court make someone bankrupt? Its none of their business
> unless a creditor makes a petition.
That's the whole point. The lender whose loan the borrower has
defaulted on would only be able to stand a good chance of getting
their money back by petitioning the court to make the borrower
bankrupt. The option of charging orders to turn the unsecured
debt into a secured one is *better* for everyone concerned
because it avoids the need to go down that road.
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