How Best To Secure My Assets

dave79

Hi,

At the begining of this year i formed my own company that although isn't doing as well as i anitcipated is gradually starting to take off.

When i formed the company i tuck a unsecured loan out for £15k as my initial investment, which i still have.

Currently im looking to remortgage my house to relase some further equity to fund my wedding next year. The house has potentialy enough equity to fund both the wedding and repayment of the loan.

However im wondering if id be best placing the house in my fiance's name and remortgaging it soley in her name, to hopefully seperate my finances and the businesses from my home. In an attempt to ensure that worse comes to worse i cant be forced to sell the house.

Does anyone know if this is acheivable? Bascially i want to seperate my finances with from my house and partners to secure them should the worse happen and the company fail. I need to IVR or declare myself bankrupt.

If im right this way the house will be secure from any repucution and i just have to pay the 15k back or IVR against it.

Any help will be gradly received

Thanks

Dave

missile

You do not say what business is, or if it is a limited company/ sole trader? Forming a limited company is cheap and the easiest way to protect your assets if the business fails. It does not protect you from liability for an unsecured loan, which (I am guessing) is a personal loan in your own name?

dave79

hi business is Limited co, and loan is in my name.

Scenario im pondering is that if business went under, and i'd signed everything
(i.e house) over to girlfriends name. could i declare myself Bankrupt or request IVA for the loan and and funds outstanding from the business.

WHA

dave79 wrote: »

Scenario im pondering is that if business went under, and i'd signed everything (i.e house) over to girlfriends name. could i declare myself Bankrupt or request IVA for the loan and and funds outstanding from the business.

But what if your gf ran off with the milkman??? By trying to protect your assets, you could actually lose them! What is the likelihood of bankruptcy or IVA? If you realistically expect to have problems repaying your debts the sooner you take proper advice the better (insolvency practitioners usually provide an informal first chat free of charge). If you realistically expect to be able to pay your debts, then you could risk more by trying to pre-empt something that isn't likely to happen!

dave79

WHA wrote: »

But what if your gf ran off with the milkman??? By trying to protect your assets, you could actually lose them! What is the likelihood of bankruptcy or IVA? If you realistically expect to have problems repaying your debts the sooner you take proper advice the better (insolvency practitioners usually provide an informal first chat free of charge). If you realistically expect to be able to pay your debts, then you could risk more by trying to pre-empt something that isn't likely to happen!

Understand what you mean regards the milkman, but for auguments sake lets assume that doesnt worry me too much.

I honestly dont feel the business is about to fail, however i need to remortgage now so wondered if this could be a oppotunity to secure the house in case of a "worse case scenario"

that way if for some unknown reason the business does fail i will be left liable for the loan, which id like to think i could get another job and repay.

But if for some reason i couldn't, i could rest assured that even if im forced bankrupt my house would be safe away from the creditors of the company and the loan i took out.

Guess what i realy want to know is that if i transfer the house into my partners name and put the mortage soley in her name. Would it be secure away from any creditors i may have. (although i run the risk of loosing to the milkman :rolleyes:)

Thanks so far

Dave

missile

The business is limited so company liabilities cannot be recovered against your personal assets. Unless you have a.n.other debts in your name it really is not worth going insolvent for 15K and IVA should not be seen as an easy way out of paying what is a fairly modest loan. In addition to the problems you will incur if you ever want a mortgage / loan etc in the future, don't forget you will run up a sizeable bill in legal expenses to transfer ownership etc. Does your gf have sufficient income to qualify for the mortgage and is she willing to do it?

If you are in the frame of mind that your company will fail, it almost certainly will. Seems to me you need to put effort into the business rather than wasting time on this "plan"