I am considering going bankrupt and my mum signed her house over to me and my brother 7 years ago. She still lives in the house. If I go bankrupt will I have to sell the house? Or can I sign the house back to my mum?
Hi Steve & welcome to the forum. It rather depends on what you mean when you say the house was signed over to you and your brother. Do you mean that you and your brother are named as 50% joint owners on the deeds and therefore a matter of record at the land registry?
I'm afraid if you were to declare bankruptcy then your interest in the property would pass to the OR and subsequently to a trustee. In the event that your share of the equity is greater than your debt then your debts would be settled in full then the trustee is likely to take an additional hefty slice in fees. There are ways in which you may be able to preserve a good percentage of the value of your equity in the property. Your choices depend on a number of key points. What is your total debt? What is your share of the equity in the property worth? What is your current net income? What is your current household expenditure etc etc. If you are seriously considering bankruptcy I would urge you to speak informally to a specialist first. Both Brett England and Paul Johns can be contacted via their web links on this site. If you are declaring bankruptcy signing the property back over to your mother is not an option as far as safeguarding it.
will I have to sell house mum signed over to me?
Posted - 26 July 2008 : 14:59:27
