DMP for pensioners

never-in-doubt

Hannah_10 wrote: »

It's a peculiar idea and I think you'd have to look into it thoroughly (because I admit I haven't) but I was wondering if there was a way for them to give thier house to thier son/daughter (and then still live in it paying rent- nominal or otherwise) and then they'll be in a position to go bankrupt without losing thier home.

I don't know how this would work in practice, so if it sounds interesting raise it with a suitably qualified advisor, but I know this sort of thing is rife in the posh end of my extended family to avoid inheritance tax. People are forever being given Mums house on paper but with the truth of it being it's still Mums really. So I'm thinking perhaps if son/daughter stood to inherit the house eventually anyway, this route could be used to make a bankruptcy possible without the loss of the property?

I have no idea, I admit I am plain guessing- but could be worth a couple of questions?

Noooo - it'd be so obvious to the official receiver if you done that - to be fair the fact they have a house is paramount that they do not go (or consider) BR - period.

You cannot start messing about and signing it over, then petition for BR cos it would be obvious why you signed the house over, and BR would be refused - it's not worth it.

Best bet is to consider UE across all debts (i'll sort that out) and then see what happens and worry about any enforceable debts at the end, at which point it may be easier to make a F&F settlement offer of around 10% - that way it could clear everything within a few weeks allowing them some peace at this stage of their lives....

lolamosschops_2

I think they want to protect their home as much as they can. I just think that they have believed the banks have been helping them, when in fact, they have offered them more and more credit whilst sitting back and waiting for them to leave the house for them to pick over. I am not interested in their property I would far rather they sold it and went into a rented situation giving them money to enjoy the odd holiday or whatever they wanted.

FraudBuster

give thier house to thier son/daughter (and then still live in it paying rent- nominal or otherwise) and then they'll be in a position to go bankrupt without losing thier home.

Check out "voidable preference" with the Insolvency Service.

libbyjade

Hi Lola,

I'd just like to echo everyone's comments on here and to advise that by finding this forum, in particular Nid's & Anns threads is the best thing that could have happened for your parents in law. Many many people on here including me have/had debts that we could not cover and so far all of mine are unenforceable due to Nid's thread and specific advice.

Good luck and I'll follow your thread offerring support where and when I can.

lolamosschops_2

thanks for all your kind words. Hopefully MiL will be coming round later today so we can get the ball rolling - I just wish our issues were as clear cut - mind you we are looking at some of ours to see if they are deemed as unenforceable and we have decided to sell our home to just have some freedom back. with any luck we can sell for a decent price and clear any remaining debts with F&F settlements, leaving us in rented accommodation but with no more debt and some money to spare at the end of the month! a cop out i know but i really cant see any other way out - as soon as these vulture see we have a property with equity they have gone for the charging order! good try - shame they have been able to send me a default letter yet but my court date is in 3 weeks time and they have even managed to combine a set aside hearing with a charging order hearing go figure - check out my other thread for full details, CCJ Help. Rant over - its a beautiful day and although I am full of a stinking cold its good that the sun is shining!

Fitzer2000

Just bumping this back up to keep focus on their situation, hate to think of pensioners on DMP's.

lolamosschops_2

hi all, we are at a bit of a stalemate today - I have a raging cold and MiL has really bad hayfever, she does seem quite open to the idea though so as soon as we are able to post more we will update. I'm sure they cant be the only people in this situation and you never know it might help someone else too!