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mattdjuk
Junior Member
214 Posts |
 Posted - 13 May 2008 : 18:50:28
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I was wondering if I can sell my BI to my wife prior to bankruptcy for the market rate but taking into account the early redmption penalty on our mortgage? I know that some ORs allow this after bankruptcy, some don't - I'm a bit wary about entering into a situation that could lead to us having to find around 10k to save our home.
We've had it valued at between 205K-210K, if I take into account the full redemption cost of the mortgage it comes in at 205K (I have the latest statement from the mortgage company to this effect) - so could we say that my wife buys the BI from me for say 207K (market value)-205K / 2 = 1K. If we were to push that through before I went bankrupt how would ORs generally view it? and would it be allowed or would it end up reversed? Any thoughts?
Thanks
Matt |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 13 May 2008 : 18:55:00
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Hi Matt,
It is possible, but I would be wary in doing so as it is always better to carry out the transaction via a trustee in Bankruptcy as there can then be no question as to the transaction not being considered at an undervalue.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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melanie_giles
Senior Member
1191 Posts |
Posted - 13 May 2008 : 22:52:05
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Whether you do it prior to bankruptcy or after makes little difference. The same calculation of equity will be carried out either way.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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mattdjuk
Junior Member
214 Posts |
Posted - 14 May 2008 : 09:07:00
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| Ok when it comes to filling in the bankruptcy forms and I'm putting details of my home in, it asks for how much debt is outstanding on it - Shall I put the full amount including the redemption penalty OR just the amount of the mortgage? In reality the amount outstanding at this moment in time is inclusive of the redemption penalty i.e. if I sold tomorrow I would have to pay them 205K, however the original mortgage is 193,500! All very confusing! |
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zoe
Junior Member
329 Posts |
Posted - 14 May 2008 : 10:29:30
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Matt
The OR do not take early redemption into account - they certainly haven't in my case and if you do sell the equity to your wife they have the power to take what they believe is the correct amount and force sale as will see as disposing assets i would imagine, i think Melanie is the best person to advise |
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Equity Again!
