Going br on my own

Dikko

Can anyone help me.

Im married and we have equity in our house which we are trying to sell, the majority of the debt around 100k is in my name and Im thinking of going br myself.

If we sell the house and the equity is given to my wife and then I go BR can the equity from the sale of the house which is joint names be ring fenced in her name and protected from my own br if I gift her the money.

Round_The_Bend

No, this will be seen as a deliberate attempt to avoid repaying your creditors. The OR will reverse the transaction and you will get a BRO! However, you should call CAB, National Debtline or CCCS to discuss your options, if you are at the stage of considering bankruptcy. There may be other options such as an IVA.

cuddlymarm

Hi

No. Your half of the equity will be taken towards your BR and then your wife will take over responsibility for paying the mortgage.

Hope this helps:rotfl:

Dikko

If I sell the house and go into an iva would I be okay then, another problem with iva I could be inheriting my dads estate within the 5 year peiod so would need to get him to change his will.

Dikko
[


QUOTE=Round The Bend;22841591]No, this will be seen as a deliberate attempt to avoid repaying your creditors. The OR will reverse the transaction and you will get a BRO! However, you should call CAB, National Debtline or CCCS to discuss your options, if you are at the stage of considering bankruptcy. There may be other options such as an IVA.[/QUOTE]

tigerfeet2006

Not a 100% but I am fairly sure that there will be questions asked and the creditors will want their share of the equity or they could refuse your IVA. Also an IVA is not usually recommended if you have no assets.

skylight

Of course, this really depends on how much equity we are talking about - in total, and be realistic dependent on the current market. You don't want loads of equity in a BR as you would if you were selling IYSWIM?? How much do you think?

peachyprice

dikko wrote: »

If I sell the house and go into an iva would I be okay then, another problem with iva I could be inheriting my dads estate within the 5 year peiod so would need to get him to change his will.

Dikko

No, an IVA is still insolvency and you will be expected to hand over your share of the equity.

The rules for disposing of assets prior to an IVA are exatly the same as for bankruptcy.

If you're thinking of an iVA why would you need to sell the house, it would be safe, you would only have to re-mortgage to release your share of the equity in the last year.

Dikko

around £50k[


QUOTE=skylight;22842463]Of course, this really depends on how much equity we are talking about - in total, and be realistic dependent on the current market. You don't want loads of equity in a BR as you would if you were selling IYSWIM?? How much do you think?[/QUOTE]

skylight

Okay. Around £50k isn't too bad. If you can get the valuers to get that down then even better (tell them you are moving due to a job relocation and need a realistic price for a quick sale). But £50k, less fees (solicitors/agents etc) leaves £44kish, split 50/50 (I assume you and your wife are both on the mortgage/deeds) so its around £22k each - this is why its important to ensure the equity is right so you can reduce this figure.

Depending totally on the OR (its at their discretion), they may or may not chase you for that amount of money; because they are not really going to get the full amount anyway. It may be possible to negotiate the BI value of that equity and get your wife to buy your BI from the OR. If the house is 50/50 then they are not really able to force a sale (is my understanding) as they cannot make your wife homeless due to your BR. But its complicated and as mentioned, really depends on how jobsworthy the OR is. Getting the equity to as little as possible in the first place would pre-empt all these problems.


An IVA would expect you to re-mortgage in the final year to release your equity value to pay them the lump sum. Bear in mind though you will have a crap credit rating because of the IVA so getting another mortgage is going to be difficult.

tigerfeet2006

So your share of the equity would be £25k. You can negotiate with the OR on this and if a 3rd party wants to buy back the OR's interest then they will quite often except less. I think it was nervousmother who had £20k BI and her MIL managed to buy it for £8k, hopefully she will correct me if I am wrong.

struggler

Can I add a question to those with the knowledge ? After an IVA is over and there is a need to re-mortgage to release the half share of the equity, how will a mortgage lender treat the application with impaired credit rating Etc. and if the proposed mortgage would take the borrower way into old age ?