Can I safeguard my sister's stake in my house?

debtinfo

to make sure the other people try their very best to pay

Ineedaname

Why put a homeless burglar in prison and give him 3 square meals a day? As a deterrent to others...:rotfl:

Crumbum

Been phoning around for advice today. The CAB was utterly useless and the National Debtline was just brilliant - so knowledgeable and helpful. I now have a plan and am feeling so much more confident.

Johnpj

Be carefull, bankruptcy restriction orders are handed out quite regularly to people who try and use family members to protect assets. This is usually because they either sell them at below market value, or on an IOU type basis.

Ineedaname

Please don't scaremonger. The OP has been given good advice thus far and the discussion has not been about protecting assets in the way you are suggesting.

Crumbum

I fully understand that the OR will pick over the bones of the sale if it happens. Which will be fine, as there's nothing to protect. The one benefit of having lost everything is that there's nothing to hide.

Johnpj

Sorry my mistake. I was raising an issue to a wider audience, due to something which had been posted further up this thread. I should have stuck to the topic.

In my experience honest and openess helped me with all aspects of the bankruptucy. I found the Insolvency Service willing to help if they could, and where they felt you were honest, open, and humble.

With regard to the council, they are more likely to put a charging order for your property on the land registry, which is much easier and less costly than making someone bankrupt. This is a long term game, as it means when the house is sold they get a share of the proceeds depending on the other secured creditors.

Councils do this for care home costs of the elderly sometimes. The housing market is not the best at the moment, and houses are not the assets they once were, so they MIGHT, stress might, not be so keen to take drastic bankruptcy action.

A more serious issue could be that the council could take you to the magistres court. In the past council tax debt was almost the only debt you could be arrested for, I am not sure if that is still the case. Of all the debts, council tax is the one you should not ignore, as if the situation has not changed it is the one which could affect your liberty.

Seek free advice from the charities as a matter of great urgency, and PLEASE let the council know the extent of your troubles. In this way they will mark you down as cannot pay, rather than will not pay, it sometimes helps with the way that they treat you.

Good luck

JCS1

Johnpj wrote: »

Sorry my mistake. I was raising an issue to a wider audience, due to something which had been posted further up this thread. I should have stuck to the topic.

In my experience honest and openess helped me with all aspects of the bankruptucy. I found the Insolvency Service willing to help if they could, and where they felt you were honest, open, and humble.

With regard to the council, they are more likely to put a charging order for your property on the land registry, which is much easier and less costly than making someone bankrupt. This is a long term game, as it means when the house is sold they get a share of the proceeds depending on the other secured creditors.

Councils do this for care home costs of the elderly sometimes. The housing market is not the best at the moment, and houses are not the assets they once were, so they MIGHT, stress might, not be so keen to take drastic bankruptcy action.

A more serious issue could be that the council could take you to the magistres court. In the past council tax debt almost the only debt you could arrested for, I am not sure if that is the case. Of all the debts, council tax is the one you should not ignore.

Seek free advice from the charities as a matter of great urgency, and PLEASE let the council know the extent of your troubles. In this way they will mark you down as cannot pay, rather than will not pay, it sometimes helps with the way that treat you.

Good luck

I suspect it depends on the council - the ones which covered the area dealt with at the OR's office I worked at did make people bankrupt for council tax debts - but only if the property was owned rather than rented.

Johnpj

JCS1 wrote: »

I suspect it depends on the council - the ones which covered the area dealt with at the OR's office I worked at did make people bankrupt for council tax debts - but only if the property was owned rather than rented.

Am I right in saying also that council tax debt was a "grey" area, in that technically it could not be included in bankruptcy proceedings? I remember something about this, and it being down to the discretion of the local council.

JCS1

Johnpj wrote: »

Am I right in saying also that council tax debt was a "grey" area, in that technically it could not be included in bankruptcy proceedings?

Council tax is included in bankruptcy as long as a final bill or liability order has been issued. Post 12 in the thread below explains it far better than I can!

https://forums.moneysavingexpert.com/discussion/789073