House and bankruptcy

OliviaM

If we sold the house to MIL and there was a lump sum, would we be able to use the lump sum to pay off my student loan (which I believe can not be included in bankruptcy) or would the OR reverse the sale?

This bankruptcy lark is a minefield!

peachyprice

DEBT_23 wrote: »

does mortgage arrears affect the OR's decision then wether or not to allow someone to keep it ???

You are allowed to pay towards your arrears while BR and it won't make any difference as to whether or not you can keep the house. If you do have arrears the equity is reduced by that amount.

If your MIL bought your house off you it would have to be at the current market value and you would have to distribute any proceeds equally between all creditors.

peachyprice

If your MIL is in a position to be able to buy your house off you she would get a better deal buying the BI from the OR. She will have to pay full market value if she buys the house, but if she buys the BI from the OR they will be open to neotiation and it will most probably cost her a fair bit less than buying the house, especially one solicitors fees etc have been taken into account.