Bankruptcy Interview and Property transfer

PDM310

I have my bankruptcy interview in 1 hour. After reading some information online I'm panicking now about a property transfer.
Around 16 months ago I stupidly had a short affair and my Wife found out. To cut a long story short we had after 20 years together a lot of mixed debts. The debts totalled around £30k. After what I did (the affair) and due to my portion of the mixed debts I signed over the house to my wife about 2 months later. My half of the equity was worth around £15k depending on house valuation.
I'm filing for bankruptcy with unsecured debts of £329k. The majority of this debt is for personal guarantees I signed on company loans and the company went into liquidation meaning I was liable. There are around 10 creditors in total however I owe the money to.
I'm not currently divorced yet from my Wife because she want's me to pay for it and I can't afford to. I've had no income since lockdown began and am waiting to start as a taxi driver. 
I'm now worried sick that the trustee may overturn the house transfer and I've now got to put my (still) wife through more woe including my two kids. 

PDM310

Had the interview. He said it seems I have a reasonable explanation as to why I transferred the house but it's up to his line manager.
Worst case scenario they reverse it and my Wife buys the small amount of equity herself back within 12 months.

One of my creditors is possibly looking into getting an insolvency practitioner to look into this because they think My fathers house could be mine as we have the same name. Hopefully it won't go further once I've sent my ID over. The trustee seems satisfied that's the case.

He said as I'm not earning any money at the moment he wants me to send him an income & expenditure form in 2 months to see if there's any surplus money to pay any creditors. Don't really see the point as the amount is £329k so a £500 a month for example isn't going to go far.
How many years can they keep looking into my earnings for?

luvchocolate

If they do not set up an IPA in the first year ...after discharge in 12 months then thats it your home and dry.
However if they decide you have surplus income and and set up an IPA that runs for 3 years. 
You have to inform them of any changes in circumstances within 21 days

PDM310

luvchocolate said:

If they do not set up an IPA in the first year ...after discharge in 12 months then thats it your home and dry.
However if they decide you have surplus income and and set up an IPA that runs for 3 years. 
You have to inform them of any changes in circumstances within 21 days

Thanks, I'm doing taxi work for the next 12 months at least so there's no chance I will have surplus income!

luvchocolate

Sounds like a plan..

Minkym00

It’s highly likely that the OR will seek to reverse the transaction as it’s a preference payment to a connected party. When the call comes the best bet is for her to make the OR an offer that would avoid legal action and would be cheaper all round.

You could be looking at a BRO as it’s a misconduct to dispose of assets whilst insolvent, which you were if your personal debts at that time were more than your assets (i.e. the £15k equity and anything else of value that you had at the time).

2020hithard

Hey PMD310 

Me and my partner had a limited company which was insolvent and we have been hit with PGs around £100k. 

We are thinking of going down the bankruptcy route. I'm worried about the OR interview, how was it? Did he bring up your previous company situation? 

Any advice would be great. 

Cheers 

RattyIrk

2020hithard said:

Hey PMD310 

Me and my partner had a limited company which was insolvent and we have been hit with PGs around £100k. 

We are thinking of going down the bankruptcy route. I'm worried about the OR interview, how was it? Did he bring up your previous company situation? 

Any advice would be great. 

Cheers 

Was in similar position and yes they quizzed me about the company.  Before the interview I sent them a long letter going into the background of my situation and loads of supporting paperwork.  Interview was fine.  Because I pre-empted it the interview was straightforward.  There were a few email exchanges after that but nothing too bad.  Bankruptcy needs careful thought but interview itself nothing to worry about.