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| wendywoo76 |
Posted - 31 October 2010 : 23:05:11
My ex-partner is thinking of going bankrupt and has agreed to sign a deed of trust drawn up by my solicitor to transfer his interest in our jointly owned property, before going bankrupt. This may seem a little strange but there are several reasons for his offer:
1. He didn't contribute financially to the purchase of the property in the beginning
2. The property is a guest house so as well as being our home it is my only source of income (i am registered as a sole trader so he only has an interest in the bricks and mortar)
3. He wishes to leave the property but has built up substancial personal debts which prevent him from renting anywhere at present so he sees bankruptcy as his only option but doesn't want to 'take me down with him'
4. the property is in negative equity so his 'share' in financial terms is effectively nil anyway
Can anyone give me advice as to if these reasons would be accepted by the OR when he goes bankrupt or would they be likely to still come after the property (even though it's in negative equity). |
| 3 L A T E S T R E P L I E S (Newest First) |
| Bigal4787 |
Posted - 02 November 2010 : 00:23:45
Hi,
Dave is correct in what he says, but the simpler answer would be to wait until your ex partner is bankrupt,as once the OR is trustee, then he/she should offer you, your ex or a third party the chance to purchase his BI, which if the property is in negative equity can be purchased for £1 plus the OR's legal fees of £211.
Once the BI has been dealt with, creditors cannot make a claim against his BI. That way, if you so wished you could then enter into a deed of trust once the BI has been dealt with, and so avoid any allegations of transactions at an undervalue(TUV).
The only thing that would have to be clarified would be whether your ex had an interest in the guest house as a business,but if as you say he only had an interest in the property as joint owner then there should be no problem. I'm therefore presuming that you weren't a partnership, and that all your ex's debts were in his name only.
But as Dave mentioned it would worth running this by the other experts on this forum such as reviva or housing.
Big Al |
| wendywoo76 |
Posted - 01 November 2010 : 22:36:28
thanks for the advice dave, very very much appreciated!!!!!!!!! |
| chester2005 |
Posted - 01 November 2010 : 02:11:13
welcome to the forum
the deed of trust will be questioned as to whether he transferred his share of any equity at below market value. if you can show the property is in negative equity when he does this there should be no problem.
that said the OR wil still question this but if the whole situation is clear on his forms then that should help.
is the property lointly mortgaged or just you?
have you any joint debts?
has he contributed to the running cost of the property/business that may have earned him Beneficial Interest in either?
BI in the property is no problem if neg equity as i have mentioned but the business could be viewed differently
i would suggest you give Paul Johns from Reviva www.revivauk.com a call (one of the forums professional experts, link on the left of the page)
he has a wealth of experience in dealing with this ort of thing and it may well be worthwhile getting it right before BR. if it is not then upon BR all assets will be vested in the OR and you may have to argue the case a lot harder.
just another point , very very few solicitors are familiar with BR and by their own admission can only advise on the consequences and ramifications that the insolvency act has upon you NOT very realistic i'm afraid.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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