Registering charge on property

Section62

CrazyM101 said:

I'll discuss with a solicitor and update this post if there is any change in this situation.

Just make sure the solicitor is one that specialises in insolvency matters - a general solicitor will know about making claims against other people, but you need the specialist advice about how the family member's bankruptcy affects you and the debt.

TripleH

I might be wrong, but I wasn't aware you could exclude this type of debt from a bankruptcy? It doesn't stop them paying you back, just means they don't have to.

Be careful that they don't get into trouble making you a preferred creditor as that could delay their discharge and ultimately the time it takes to pay you back.

GDB2222

There’s a very small possibility that the op could argue that they effectively own a proportion of the house. That would be a matter to discuss with the solicitor.

user1977

GDB2222 said:

There’s a very small possibility that the op could argue that they effectively own a proportion of the house. That would be a matter to discuss with the solicitor.

Only if they spin a story which is completely different from the one they've told us.

GDB2222

user1977 said:

GDB2222 said:

There’s a very small possibility that the op could argue that they effectively own a proportion of the house. That would be a matter to discuss with the solicitor.

Only if they spin a story which is completely different from the one they've told us.

The point about the agreement to sell the property is relevant. It depends what was written about that. If seeing a solicitor, it is worth raising the question of a constructive trust.

user1977

GDB2222 said:

user1977 said:

GDB2222 said:

There’s a very small possibility that the op could argue that they effectively own a proportion of the house. That would be a matter to discuss with the solicitor.

Only if they spin a story which is completely different from the one they've told us.

The point about the agreement to sell the property is relevant.

Sell "or remortgage". Not "buy my share of the property".

wilfred30

CrazyM101 said:

Thank you all for your prompt responses. Obviously, in hindsight I would have done things differently but we live and learn.
Hopefully other people will be able to find this thread and make better decisions before they lend money out to friends and family.

I am still confident that I will get the money back due to as stated by Section62, their moral obligation rather than a legal obligation.

I'll discuss with a solicitor and update this post if there is any change in this situation.

I hope that your confidence in getting your money back comes to fruition although I personally doubt it.

Realistically, where do you think they're going to get the £50k from?

GDB2222

user1977 said:

GDB2222 said:

user1977 said:

GDB2222 said:

There’s a very small possibility that the op could argue that they effectively own a proportion of the house. That would be a matter to discuss with the solicitor.

Only if they spin a story which is completely different from the one they've told us.

The point about the agreement to sell the property is relevant.

Sell "or remortgage". Not "buy my share of the property".

I agree that it is a very very long shot.

CrazyM101

OMG, this is turning into a nightmare!
Thanks again to all the posters with your updates and suggestions, I really appreciate it!

I spoke to a friend who carried out some initial checks and they made discoveries that is pretty much evidence of lying/fraud.

So the relative was declared bankrupt roughly six months prior to borrowing the money for the house. It looks like all the charges have now been removed. I never checked these things before or after the lending as I took everything at face value, placed trust in them and never had a reason to doubt anything they told me.

I understand now why they wanted to borrow the money as the re-mortgage route was obviously out of the question.

I am so pi**ed off that I haven't approached them for an explanation. When they told me they were declared bankrupt and had charges on the property I guess they were sort of telling the truth with an intent to mislead? I obviously can't provide any evidence for the verbal conversations.

Anyway, am I truly stuffed now?

newsgroupmonkey_

Quite honestly, you're in a better position.

Had they borrowed the money pre-bankruptcy, it could have been included as an unsecured loan (even though you had an agreement about how it was repaid).

However, they borrowed it AFTER bankruptcy and therefore is a NEW debt.

Therefore you can take them to county court, get a judgement and a charge against the house.

It's a lot of money though and I'd suggest that a solicitor is money well spent.