Bankruptcy and house repossession

simkamen

Dear All,

Can I ask you for advice ?

Having 89 k of debt I need to declare myself Bankrupt and not quite sure what is going to happen with my wife house. In 2011 the house was transfer on my wife name as we were having marriage problems.
I have tried so hard to pay everything but I was not able to earn that much. The loan has been taken in 2009 when I was an owner as well. Right now the house belongs to my wife so my question is if I declare bankruptcy can they do a house repossession ?

I would appreciate of any help


Thanks

debt_doctor

Hi,

If the transfer of the property was for nil worth or you didn't get a fair share for the price of the property share then the Insolvency Service (IS) may well view this a a 'transaction at undervalue' and persue your wife for the value you should have obtained.
A transaction at undervalue can be looked at and overturned within 5 years of the event taking place.
What really matters is what was the property worth at the time minus all mortgage balances? If that leaves any equity then the assumption is that half that value is yours and the IS may well want it.
The IS would simply ask your wife to pay them in the first instance. The IS don't normally take 'action' to recover unless the gain to them is at least £5k.
Arrangements in the family courts made with the courts full knowledge of financial circumstances at the time will normally be protected from IS involvement.

DD

makeyourdaddyproud

What if the wife has children and refuses to cooperate with any IS correspondence?

debt_doctor

How much equity was there at the time of the transfer?

DD