Yes, that does seem to be an issue.
Usually, you would simply proceed to enforce the charge, which you would be applying to the court for permission to sell the property. That might not get you very far here.
Otherwise, you could relinquish your security and seek to prove in the bankruptcy and with the other unsecured creditors. Whether you get anything back from this depends on whether he has any unsecured assets and whether there are other unsecured creditors. If there are other unsecured creditors then the amounts of their debts will affect what you get back in any bankruptcy.
Ultimately, if he doesn't have the money, the truth is, you're not going to see it. You can leave your security in place, hoping that as the property market begins to rise again, you will eventually see your charge being paid off in time and this might be your best approach.
I know this is not really what you wanted to hear, but I hope you will understand that I would rather try and be honest and accurate in any answer that I give you.