My mums house

cookiesmum

Hi I'm new to this site. I'm shaking as I type this.The CAB have been helpful and have said I should file for bankrupcy.Reading all your post on here has answered some of my questions.
My mum has a house and she will be leaving it in her will. The assets will go between me and my three sisters.She has talked about signing it over to us now. I do not want to tell her about my terrible financial state.What will happen if she does this after I file for bankrupcy. I feel sick with all this worry.
The CAB have also said I could ask my bank if I can keep my account open before I file. Surely they will freeze it if they know what is going to happen.
I've also just done a stupid thing and got a provi loan it was the only way I could raise the funds for bankrupcy.
Sorry for rabbiting on but my nerve are getting the better of me.

Bossyboots

Maybe you should explain to your mum the risks and disadvantages of signing her property over to you as means to persuade her not to without revealing your secret.

Firstly, if she signs it over to you and continues to live in it rent free then it will be classed as a gift with reservation and still be classed as her asset for the calculation of inheritance tacx (which I am guessing is the issue she is trying to avoid by signing it over)

Secondly, if you or your sisters divorce their partners will be able to claim a share of the property. The property may end up being sold to satisfy this settlement.

What if one of you becomes homeless, you won't get rehoused anywhere else with this property available to move into, meaning your mum loses her privacy and independent.

The share of the property will be calculated as an asset for means tested benefits and legal aid should any of you need to apply for this at any stage.

You may end up with a capital gains tax bill on the property.

One of you could end up in financial trouble meaning the property has to be sold.


If you were to explain to her all these pitfalls, then you might be able to keep your secret and her property safe.

cookiesmum

Thanks Bossyboots. I'm actually on incapacity benifit as I've had a broken back and unable to work.This being one of the reasons I'm skint.I will talk to her about this. I have worked all my life and have up until twelve months ago been able to pay my creditors, even though I struggled.
I only found this site this afternoon and I'm so glad I have. I don't feel quite so alone now.I'm sure I will be on here alot asking questions and reading about other people who are in the same boat as me.
Thanks so much for your advice.

abbecer

Welcome to the board Cookiesmum. You will gain invaluable advice and make some great friends along the way. Your situation will get better it just may not seem that way at the minute.

Hugs

Rebecca x

cookiesmum

HI Rebecca.
I went to the CAB in November and have decided the BKR is the best option for me. I feel sick every time I think about the mess I'm in.But I've had to be brave and face it as I know it wont go away.I did go to a financial co. who I paid monthly but my bank, even though they were taking the money for over twelve months wanted more. I couldn't afford there demands.
I have a different bank account now which I've had for twelve months. I'm not sure what to do as I know they will freeze this. I need somewhere for my small wages to go into(I am allowed to work a few hours a week even though I'm on incap ben).I've read on here that I can ask for a basic account but can't do that until but have to wait until bankrupcy has started.
Thanks again for you reply Rebecca it's so comforting to know I'm not alone.

abbecer

Cookiesmum you are taking all the right steps in addressing your problems and hopefully things will look a bit brighter pretty soon. I'm sorry i can't offer advice regarding bankruptcy as i know very little. I've also never dealt with the CAB. There will be someone comes along here who will be able to offer you more practical advice than i can. Keep us all informed of how things are going.

Love

Rebecca x