What is the status of my debt?

garethlewis

Hi all.
I have £17,500 of debt. 5 credit cards and one overdraft. All are in my name. It is killing me slowly....
Six months ago myself and my wife sold our jointly owned house leaving us with £120,000. We purchased a flat and put it solely in my wife's name.

My question is if I went bankrupt could the new flat be included in the calculations that the companies might make to get their money in any way?

rizla_king

yes the official receiver could come after your share of the money. forcing sale of property if needed. think they can do that for 5 years from when you bought it.

garethlewis

Thank you for your reply.
The property is not mine. It is my wife's. An accountant friend (who also told me he was no expert) told me a husband and wife can give any amount of money to each other for any reason. Doesn't that mean that the home is not affected as it was purchased by my wife, not the two of us?

rizla_king

thats nonsense. can be perused as a transaction under value. especially as it was made to a spouse of relative.

ask on bankruptcy board here if you doubt that

rockm87

Hi and welcome.

Do you looked at options other than going bankrupt? have you put together a proper budget, or a Statement of Affairs so that you can be realistic about how much you can pay off?

or give a debt charity a call, like step change and get some advice.

[Deleted User]

I would definitely hold fire on going bankrupt; the official receiver would want to know why you bought a flat and put ownership in your wife's name. Could be seen as a calculated attempt to move your assets, and you'd be in a world of the brown stuff.

sourcrates

garethlewis wrote: »

Hi all.
I have £17,500 of debt. 5 credit cards and one overdraft. All are in my name. It is killing me slowly....
Six months ago myself and my wife sold our jointly owned house leaving us with £120,000. We purchased a flat and put it solely in my wife's name.

My question is if I went bankrupt could the new flat be included in the calculations that the companies might make to get their money in any way?

Debt relief order may be more suitable for you.

Contact National Debtline and ask there advice.

More info here : http://m.stepchange.org/how-we-can-help-you/debt-solutions/debt-relief-order?WT.srch=1&WT.mc_id=288026&WT.seg_1=dro&gclid=CLro3cD0hckCFWrpwgodHz4F_Q

Ashingtonian

Why didn't you just pay off your debt with some of the proceeds of the house sale?

garethlewis

Thank you all.
couldn't get mortgage, self employed earnings too low... couldn't rent as landlords wouldn't look at us re affordability test..... so we paid cash for a teeny flat leaving us with no mortgage.... I know what you are all going to say...

no mortgage and cant pay your c.c. debts? How come?

HappyMJ

garethlewis wrote: »

Thank you all.
couldn't get mortgage, self employed earnings too low... couldn't rent as landlords wouldn't look at us re affordability test..... so we paid cash for a teeny flat leaving us with no mortgage.... I know what you are all going to say...

no mortgage and cant pay your c.c. debts? How come?

Why can't you rent? You had £120,000 in the bank.

You can afford to rent virtually anything.

I wouldn't go bankrupt. You'll most probably lose the house in which you live.

andyfromotley

Hi Gareth,

ok i'll ask. No mortgage. No Kids?? Tiny flat = tny bills. So, why cant you pay your CC's?

If your income from self employment is that small then you need to get paid employment. TBH you sound as if you are in a great position to tackle your personal debt head on.

Post an SOA and we'll have a look and see if we can help.