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floyd
Starting Member
6 Posts |
 Posted - 12 January 2010 : 17:23:44
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Hi there,
I couldn't see a similar case in the forums, hence this post:
I have a mortgage of 280k GBP against a property worth now around 190k GBP. I'm not in arrears now, though I'm in a 6-month payment break (job loss). While I do not plan to declare bankruptcy for at least 6 months, I consider it as a Plan B solution.
Now, I own a plot of land in the EU worth around 15k GBP, which I would so much hate to lose for personal reasons, and I'm considering a donation of that property to my baby son this month.
Q1: Would that exclude the property from my assets?
Q2: If so, could that be considered a defraud of the creditor?
Thanks! |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 12 January 2010 : 18:35:59
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Hi,
1. No
2. Yes
You would be legally obliged to inform the OR of any assets you have when you are declaring BR. This includes any property you have disposed of in the 5 yrs.
If the OR found out about the property (i.e. if you didn't declare it) they could legally force the sale and this could mean you end up with a BRU. A BRU increases the length of time the BR restrictions apply and the OR would go through the rest of your case with a fine tooth-comb.
I understand you not wanting to give up the land but you would be writing off a £90k shortfall in your mortgage so sacrificing a £15k plot of land is a small price to pay. |
Edited by - gettingoutofdebt on 12 January 2010 18:36:42 |
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floyd
Starting Member
6 Posts |
Posted - 12 January 2010 : 20:14:54
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Many thanks for your reply. I never intend to conceal anything (unlike banks do in mortgage contracts).
Q: I wonder, then, if a sales of the property and declaration of the full amount to the OR would still be considered a fraud.
(sales -> around the price of purchase, perhaps. The property was purchased 3 years ago at a price well below the average market one as the land needs massive investment to become usable, according to a professional assessment)
Thanks again for your time and patience! |
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debtinfo
forum expert
2826 Posts |
Posted - 12 January 2010 : 20:22:26
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| If you sell it for market value then there is no problem. Then you would have to hand over the money to the OR or provide an explanation of what you have done with it |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 12 January 2010 : 20:52:47
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Hi Floyd
welcome to the forum
obviously plan B depends on the job front
At this early stage i would suggest speaking to Mel and / or Paul (site experts)
They may be able to help with a plan C , D and E
regards Richard
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floyd
Starting Member
6 Posts |
Posted - 13 January 2010 : 02:50:12
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Thanks, Richard - that's not bad news. (The price would be below the market one, though, similarly to the price of purchase, due to the quality of the land)
And I'll speak to Mel or Paul, as you advise.
While we're at it, just regarding another issue: PENSION PLANS, not fully covered on the forums, but referred to this way:
quote:
JulianDonnelly
The only time your pension would be looked at in BR is if you were within 3 years of retirement when you go BR.
quote:
John
During bankruptcy the OR will check the pension fund to see if it is claimable, ... if it is inland revenue approved it is safe.
My pension plan is a non-UK one, and it's not claimable as I'm only 31.
Q: Is such a pension plan an asset when BR? |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 13 January 2010 : 06:50:58
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No, the pension should be fine. My private pension (with my old firm) doesn't mature until 2035. I put the details on the SOA (BR form) and the OR mentioned that they weren't interested in it.
One quick question - are you resident in the UK and have you lived here for the last 6 months? The only reason I ask is that you have land in the EU and a non-UK pension so I am assuming at some point that you resided/worked in the EU. |
Edited by - gettingoutofdebt on 13 January 2010 06:52:31 |
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Hi there,I couldn't see a similar case
