Advice

ben09042013

Last October I transferred my name off the joint mortgage I had with my brother. The reason was simple his credit rating was being affected and I wanted to put a stop to this. There was 0 equity in the house but my brother and partner wanted to give me something for the house. After lots of talking we decided that I would receive £5k but that I would not benefit from this and that my partner (who I fp not live with or have any financial association with) would receive a gift from me,rreplacement windows. I have receipts to prove this but, im worried that this could have an impact on my decision to go either bankrupt or choose sn IVA. I am having massive problems with finances and have for a while so I realise that these are now my only 2 options open to me.

Another concern is my old house. What impact do either of the above scenarios have on my brother's house now. I've been told various problems that could occur from, they can force me to remortgage through to It shouldn't have any impact on me. It is a concern as I want to minimise any impact on my brother

thanks

alastairq

If you were to petition for BAnkruptcy, then the OR would seek to realise your assets.

The OR would look back in time, to identify if you had 'disposed of an asset at below market value'....?

In the case of your brother's house, given that it is in negative equity, or zero equity [this may need to be proved?]....then I don't think anything untowards would occur.

They{? who are 'they?']...ie the OR, cannot 'force' anyone to re-mortgage...no-one can.

If the OR identifies any interest in the property as being attached to you, then the OR will want that for the BR estate.

If you do not reside there, and haven't done so for some time, any interest in the property attached to you would be diminished.

Did you contribute to the initial purchase deposit?

Did you contribute to mortgage payments?


Worst case scenario, the OR overturns the whole deal, and it reverts back to the situation that existed last October. Then, what was your beneficial interest in the property [your share of any equity].....becomes the OR's interest.

debt_doctor

Hi,


It would appear that you gifted £5k to an (ex?) partner for some windows.
The OR would see that as a transaction at undervalue and attempt to recover the money from the partner. Initially they just ask and await the response, but may take legal action to recover the monies if the gain is of sufficient value.
Current guidelines say that the OR will look to instructing their solicitors if the gain to the estate is £5k or more - which of course is right on the border line for your gift.


DD