Can You Write Off a Secured Loan?
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We often get asked whether Secured Debt can be written off. The answer to this is NO. Or at least it is highly unlikely.
It is worth remembering, that the whole purpose of securing a debt against property or another asset is that it allows the asset to be repossessed and sold should you fail to repay the debt.
Lenders will often provide lower interest rates and allow you to borrow higher amounts of money all because they consider the risk to be lower than an unsecured loan. The risk is lower, because if worse comes to worst, they can repossess you asset and sell it.