repossesion if girlfriend declares bankruptcy

james3333

hi all,
my partner and i have recently split up and she has moved out.
i have sorted a solicitor and got things underway to get the house into my name only.
now, no money is changing hands in the deal just putting the mortgage into my name only. ( well i have given her 10k but not told the solicitor) does this matter?

i just recieved a letter from my solicitor that if my girlfriend declares herself bankrupt in the next 5 years, the courts could take £30,000 off me or reposses the house!!!
also, if i sell the house in the next 5 years, i will need to get asome sort of 'indemneity policy' to say the new owners have no part of this mess.

can i do anything about this?

irnbru_2

james3333 wrote: »

i have sorted a solicitor and got things underway to get the house into my name only.

Joint mortgage? If I was a creditor I'd assume your ex-GF was trying to dispose of assets that could repay (part of) the debt.

james3333 wrote: »

well i have given her 10k but not told the solicitor

Given = gift : therefore it would be hard to get the money back.

Why did you not pursue buying her share of the house via a solicitor?

clutton_2

just be honest with the solicitor - tell him/her about the £10k its much better to be truthful

james3333

clutton wrote: »

just be honest with the solicitor - tell him/her about the £10k its much better to be truthful

will the solicitor charge extra if she knows about the 10k 'gift'?
or will it affect anything else?
my ex g/f doesnt want any money from the equity of the house.......we simply want it putting in my name only, but its proving to be a nightmare, why after 5 years should the 'courts' still have a hold over my house if she went bankrupt!!!!??

Doozergirl

No, they won't charge more if you do it properly. You'd be buying part of the equity from her. It doesn't cost any more as you are effectively buying the property back from her. The conveyancing work is the same.

If she did declare herself bankcrupt and there was no record of you paying her any money, then they might decide that she had delibarately sold at below value to avoid paying her debts. Without doubt, you need record that you have paid her accordingly for her equity share.

Debt_Free_Chick

For heaven's sake, be honest with your solicitor. If you can't confide in a solicitor then your only other option is God and you can't call on Him to defend you if there's a dispute!

What your solly is saying is that she has "a beneficial interest" in the equity in the property ... that she has contributed to the extent that she's entitled to any amount that exceeds the outstanding mortgage.

From what you say, you want to pay her £10k and have all the property transferred to you and to discharge all her liability/beneficial interest.

That being the case .... tell your solicitor this!!!!!!!!!

SouthCoast

Has the mortgage lender agreed to release her from the liability?

HelpWhereIcan

It's called an antecedent recovery. Something that is in the Insolvency Act 1986 and something that is a particular issue for those people buying properties in sale and rent back agreements when the property is bought below market value.

As has been said, basically put it is to stop people disposing of assets cheaply in anticipation of bankruptcy in order to deprive their creditors of assets. In fact it is commonly done between spouses and partners in a misguided attempt to avoid the house coming into the bankrutpcy of one partner.

Make the solicitor aware that the 10k is changing hands. It will at least reduce the 30k to 20k as she would be disposing of it by 20k less than market value if she receives 10k for it.

Is your partner in financial trouble? Think very hard about the chances of her going bankrupt is she is. Be very careful if she owes the tax or VAT man.

If not, I suppose it could be argued that there were no creditors to deprive but you will need to get legal advice to see if this would be the case.

Talk to a local insolvency practitioner as they may be able to help.

james3333

ok guys,
it seems that it is in MY best interest to tell my solicitor about this 10k iam giving my ex g/f.
so i will do this.
could i say i was giving her 30k and then this whole matter would be dropped. ( would i have to prove that 30k went into her bank?)
cheers.

pinkshoes

james3333 wrote: »

ok guys,
it seems that it is in MY best interest to tell my solicitor about this 10k iam giving my ex g/f.
so i will do this.
could i say i was giving her 30k and then this whole matter would be dropped. ( would i have to prove that 30k went into her bank?)
cheers.

!!!!!!, just be HONEST with your solicitor!

If you gave her £10k, then tell him you gave her £10k. Solicitors are there to sort out messy stuff, so there's absolutely no point whatsoever in lying.

I'd get your ex to sign that she received £10k!! otherwise she might make you pay it again!

james3333

ok, ok, ok.
but will i have to prove that i gave her 10k ( i.e bank statements etc?)