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Selling beneficial interest to spouse - house in spouse's sole name

edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
15 replies 1.9K views
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  • AnotherJoeAnotherJoe Forumite
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    have my wife buy my beneficial interest in the property, rendering me with nothing


    Surely it would give you money, rather than "nothing" and make you more attractive to pursue?

    Also, you'd have transferred a potential BI of yours, which could be argued isn't one, into cold hard cash, again making it more likely you'd be pursued.
    Unintended consequences and all that.
  • Minkym00Minkym00 Forumite
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    Yes, DROs are covered under the same Act as bankruptcies. Have you checked that you qualify for a DRO?
  • AnotherJoe wrote: »
    Surely it would give you money, rather than "nothing" and make you more attractive to pursue?

    Also, you'd have transferred a potential BI of yours, which could be argued isn't one, into cold hard cash, again making it more likely you'd be pursued.
    Unintended consequences and all that.

    Yes indeed, in light of the information on BI in the IS Technical Manual, it would seem that I would in fact be creating some assets where there previously would have been none!
  • Minkym00 wrote: »
    Yes, DROs are covered under the same Act as bankruptcies. Have you checked that you qualify for a DRO?

    Actually I just checked this and I wouldn't qualify as my debts would be over 20k when including the recent loan that I have (payments being serviced by my amazing wife for the time being). So if it came to it, it would have to be bankruptcy. Just thought that a DRO would be the preferred option as it doesn't get recorded forever like a bankruptcy does.
  • edited 27 June 2019 at 12:11PM
    lifeoflearninglifeoflearning Forumite
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    edited 27 June 2019 at 12:11PM
    Actually, this has given me an idea. Could you tell me if it is sensible:

    There is a 50/50 chance I will receive a CCJ from a pending case (one of the old debts that I have been dealing with). It would seem that other than being over the £20k mark, I would fit the bill for a DRO given that I have no income, savings and don't own a home (as per the beneficial interest issues discussed above). One of the debts is unenforceable, provable by a letter received from the DCA attempting to collect it as the CCA is not present. Not only that, but I also happen to know that it is a merged credit card and overdraft, which is a big no-no from a regulatory point of view; this means that I do not need to list it in a DRO. My existing loan still puts me over the threshold, however, if my wife were to pay it off, I would be under the threshold and could then apply for a DRO. The only issue I see here is the whole preferential payments issue, however according to the IS Technical Manual, the time limit for preferential payments to non-connected parties is only 6 months as opposed to 2 years. As far as I understand also, payments made under a court order, i.e. the CCJ do not count as preferential.

    So, to summarise, if my current loan were paid off, I could continue to meet the obligations of my CCJ and would be able to apply for a DRO 6 months after paying off said loan? Could this be the answer to my problems? Strikes me that if I am going to get a CCJ, my credit will be ruined again for a further 6 years anyway, so I have nothing to lose by going for a DRO and dealing with all my old debt issues once and for all.
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