I have a lot of equity, but the house is also a b&b business I need to survive.Due to the colla[se of our pub my husband has gone bankrupt and now I will be liable for all debts. Can I ask a friend or relative to take a charge out on my house to remove equity, then go bankrupt myself?
Hi Charlie, If you did this the Trustee would seek to reverse the transaction. Additionally you could end up with a bankruptcy restriction of up to 15 years. so all in all not a good idea. Have you sought proffesional advice as it is possible that the OR would close the B&B down and take the assets.
If you have a lot of equity in the property then an IVA could be a good option.
If there is equity in the property and you declare BR then the OR would seek to release 50% (your half) of it in order to pay to your creditors. Your husband/family could purchase this 50% back from the OR but if you didn't have the money to purchase the equity from the OR then the house would be put up for sale.
The house is all in my name, but the debts are from the collapse of the pub because the brewery put pressure to have my name on lease, even though they knew I wouldn't be apart of the running of it. All a bit of a mess really. Seeing a barrister tomorrow to building a defence against the brewerys demands!
Good luck tomorrow. I don't know who you have taken advice from regarding the IVA but http://iva.co.uk/ has some very good advice and some companies worth speaking to if you decide an IVA is the right option.
I think you need to see what is the position re your husband and any claim his estate has on the equity of the house. Additionally does his estate have any claim on the value of the business.
Perhaps you should review the position and get a second opinion.
If you are remotely looking at an IVA then you really should talk to Melanie - she posts here and is a forum expert and proposes IVA's. Her company has an enviable reputation for successful iVA's.
I have a lot of equity
Posted - 08 September 2009 : 18:27:37
