Note: You must be registered in order to post a reply. To register, click here. Registration is FREE!
T O P I C R E V I E W
triplefun
Posted - 18 December 2008 : 16:57:00 Good afternoon bankruptcyhelp.org
I was wondering if you could offer me some advice and guidance on an idea I have to help a friend with her dire financial situation. I don't know precisely the figures of her debt but I know that she has nearly maxed out her credit card limit, overdraught and does not have the income to pay off her mortgage, bank loan, creditors, etc.She is about to loose her lodger and his income and cannot get a remortgage, bank loan or any other such credit(which I have advised her is not a good option). She also has a permanent visa to emmigrate to Australia. Her house is on the market and also available for tennants to rent and her car is up for sale. Unfortunately due to the current housing situation and economic situation she is struggling hugely to sell either her house or car. This is compounded by the fact that she lives in a very remote and isolated part of the Highlands of Scotland. My question is would it be legal for her to sell her house and other assets to her daughter for, say £20 give all her furniture, and possessions to her friend who is also emmigrating to Australia and then declare herself bankrupt? I suspect that there are rules to prevent this but if legally possible it would allow her the opportunity to start a new life in Australia. Also if this idea was feasable would there be any implications for her in Australia,ie would the bankruptcy follow her to Oz. Any advice or guidance on how to deal with this situation would be VERY much appreciated. Thank you in anticipation
1 L A T E S T R E P L I E S (Newest First)
John
Posted - 18 December 2008 : 20:45:09 Hi
a newly declared bankrupt is required to list all assets sold or transferred at an undervalue at any time during the 2 year period prior to the date of the bankruptcy.
The Official Receiver has the power to undo any such transactions and realise the true value of the asset(s) to the benefit of the bankrupt's creditors.
Where property is concerned it is a simple matter to identify transfers undervalue using Land Registry data.
