repossesion if girlfriend declares bankruptcy

Doozergirl

Yes you will. The solicitor can't just take your word for it. Why is it a problem?

Really, you shouldn't h ave done it until she has relinquished any hold on the house, otherwise you've just given her money and she still has half the house!

This is all to protect you. No one is out to get you, except perhaps your ex!

Flat_Eric

Firstly be honest with your solicitor, I doubt you are getting his services for free so since you are paying for his expertise and time then please put him fully in the picture.

It is very important that you note your solicitors advice regarding the transfer of your property into your sole name. 5 years is a long time and anything can happen. If your now ex girlfriend goes bankrupt the Official Receiver will look at all transactions effected by your girlfriend during that time frame. This means if she has transferred the property to you at an undervalue i.e. you haven't paid her the amount her share in the house is actually worth then if she does go bankrupt you can expect to receive a nice little letter from the Official Receiver asking for the proper amount.

I wouldn't expect the Official Receiver to repossess the house unless you ignore any contact the Official Receiver makes on your girlfriends bankruptcy and the Official Receiver then goes to Court to force the sale of your house so he can get the money he is owed.

I hope the above helps - but please note that nothing in this post replaces getting proper legal advice and should not be relied on.

SouthCoast

Fast forward three weeks.

Please help:

My mortgage lender will not release my ex from her liability on the mortgage.

clutton_2

then you will have to buy out her share and buy the property in your own name - have you actually given her the £10k already ??

james3333

so, through the solicitor, can i ask the mortgage lender to 'release her from liability' hense getting rid of this whole problem?

Voyager2002

james3333 wrote: »

so, through the solicitor, can i ask the mortgage lender to 'release her from liability' hense getting rid of this whole problem?

Doing so is usually part of the process of transferring the house from joint names to your sole name. However, this will not do anything about the problem explained in the letter from your solicitor.

Voyager2002

SouthCoast wrote: »

Fast forward three weeks.

Please help:

My mortgage lender will not release my ex from her liability on the mortgage.

Did they say why? Would they accept a guarantor?

james3333

i think this is someone guessing what situation iam going to be in in 3 weeks.

AlanG_3

HelpWhereIcan wrote: »

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.

Ok . Are you saying that people who owe money , yet havent yet faced bankrupcy or a court, can freely dispose of assets providing that they are not under valued? (therefore frustrating any process)
Where is the line drawn?

missimaxo

I can answer that..... yes a person can dispose of an asset when they owe money as long as it is not at an undervalue..... BUT

You have to declare all property you have had an interest in over the last 5 years, then the OR will want a copy of your mortgage completion statement showing what equity you received. You will then have to account for how that money has been spent. Failure to fully account for it can lead to prosecution, if you have given it to friends and family it could still be recovered (as in the other post) as an anticedent recovery. If you have the cash the OR will want it, and if you have spent it and not paid your creditors you could be subject to a bankruptcy restriction order for disipation of an assett.

Of course if you have used your money to pay off your creditors as you should do then you won't be bankrupt