Advise for a friends sister considering bankruptcy

singingsister

Hi guys,

I've just come off the phone with a friend whose sister is getting divorced and at the same time sued by an ex business partner (not sure the ins and outs) and due to the divorce has absolutely nothing (and twin toddlers to care for to boot).

Now the sister has previously been divorced and when the first divorce happened, her parents bought 85% of her house so that she could afford to live.

She is now considering bankruptcy, not only because she has nothing but also because she thinks that if she gets successfully sued (as i said I no nothing about why) they can't take anything if she doesn't have anything.

She has no savings as they were all plowed into the failed business.

My question is what will happen to the house? She legally owns 15% of it but her parents own the rest. It's not in negative equity because there is no mortgage on it anymore. The sister doesn't want to end up with no roof over her head obviously.

I was able to help my friend with some of the more basic bankruptcy questions but obviously couldn't help with the house part as I have always rented.

They live in NI if that makes a difference.

Obviously her parents don't want to end up with any of the consequences of her bankrupt owning 15% of the property.

The comment has been mentioned about the parents re-mortgaging and buying the 15% from the daughter (and then the daughter rent from the parents) but I said you have to be careful as if you do go BR after this has happened, I am worried it might look "dodgy" in the OR's eyes.

Any advise I can give my friend for her sister?

singingsister

bumping this up...

IF

Hi singingsister, until a poster from NI can advise further please ask your sister to ring one of the debt charities as they don't charge and are impartial. They will go through all her options and if they suggest bankruptcy then come back to this board and we will help you/your sister all we can. Also if she's not ‘clicking’ with one of the Debt charities do try another. We advise here to try at least two for your own piece of mind.

* Blue text on this forum usually signifies hyperlinks, click on the blue links below *

Advice 4 Debt NI - http://www.advice4debtni.com/

StepChange Debt Charity (Was CCCS) :- http://www.stepchange.org/DebtadviceinNorthernIreland.aspx

CAB - http://www.adviceguide.org.uk/nireland.htm


For information in Northern Ireland you should contact The Insolvency Service of Northern Ireland at:

The Insolvency Service
Fermanagh House
Ormeau Avenue
Belfast
BT2 8NJ

Tel: 02890 251441

N.I. Direct - Click here

Online forms - http://www.detini.gov.uk/deti-insolvency-index.htm

NI FACT SHEET - www.hmrc.gov.uk/factsheets/ef5-ni.pdf

Best wishes
IF...x