Saving my house and assets from Cyprus Bank

[Deleted User]

db0070 wrote: »

How is it fraud if I legally sell my property to someone at a low price?

That's the law, it was designed to stop people like you doing what you plan to do and getting out of debts you owe.

When the bank lent you money it was based on an assessment of your assets and income. If you were allowed to simply dispose of your assets to avoid paying the debt with no consequences banks you immediately stop lending money. You could buy a house with a massive mortgage, sell it to your mate for 20 quid and then say "oh, sorry, can't pay it back and don't have any assets, too bad Mr. Bank".

Are you really surprised that the law doesn't let you simply screw the bank out of €130,000 on a bad investment that YOU made knowing full well what the risks were?

Crystallady

IIRC selling property at undervalue will allow the sellers creditors (Emporiki Bank) to apply to the courts to get the sale(s) set aside, allowing them access to the asset(s) and leaving the purchaser(s) with nothing.

dotdash79

It's scenarios like this that can make an smart accountant very handy to have.

Strapped

If you sell your buy-to-lets, can you raise enough to cover the outstanding mortgage? (Or a decent % of to enable a sale)?

cajef

Johnnytwostep wrote: »

Call me psychic but the next thread will be along the lines of 'I was miss-sold and want to get out of paying my dues'

Already trying to say it is partially the banks fault for his self made problems.

db0070 wrote: »

While I accept my fault, the bank I believe should also accept responsibility for creating such an economic situation - in my opinion.

db0070

Strapped wrote: »

If you sell your buy-to-lets, can you raise enough to cover the outstanding mortgage? (Or a decent % of to enable a sale)?

Thanks for being one of a few to give a constructive comment. This is one option I am seriously considering. But if I sell all at once then there is a huge CGT to pay. So, at the moment my best bet would be to negotiate if Cyprus bank can delay for 3 years or so, to give me time to sell my properties to minimise CGT.

danielanthony

I you sell to your relative then they will have to pay stamp duty on the whole amount, not what you sell it to them for as otherwise that is tax evasion. Also, banks aren't keen on lending on non-vacant possession properties or renting to family members.

John1993_2

db0070 wrote: »

Thanks for being one of a few to give a constructive comment.

Lots of people have given you constructive comments, but they just aren't what you wanted to hear. They pointed out, correctly, that you could well be committing fraud if you weren't careful.

The slightly abruppt tone was likely because this is not a site where people are generally helped with screwing over lenders. Most people here believe that if you borrow money, and have the assets to cover your debt, then you are liable for it.

DTDfanBoy

db0070 wrote: »

Thanks for being one of a few to give a constructive comment. This is one option I am seriously considering. But if I sell all at once then there is a huge CGT to pay. So, at the moment my best bet would be to negotiate if Cyprus bank can delay for 3 years or so, to give me time to sell my properties to minimise CGT.

Don't forget that you can offset your capital gains with your capital loss in Cyprus

I don't know how you're planning to minimise your CGT in a few years, but unless you own the properties outright the vast majority of legal tax minimisation measures aren't available to you.

I_have_spoken

Can't you leverage up the loans on the other properties to fund some payments to Cyprus?

The problem is, any attempts to restructure your Ltd. company or use offshore trusts after a creditor makes a claim will be deemed fraudulent conveyance.

You need to seek an accountant who specialises in insolvency