Any advice most welcome.

[ingrid]

My hsuband and I have been separated since September 2005 and living apart since February 2006. He has amassed £40K in debt (in his name only). As security for our small child he wants to transfer the title deeds of our house into my name so that he can then declare himself bankrupt so that he can start paying me money for our child.

At the moment he is left with £240 per month which has to cover travelling expenses, petrol, food and other living expenses for hismelf only and has £900 in VISA payments alone. I have spoken to my solicitor who has said that the courts may consider my husband and I to be declaring a fraudulent bankruptcy claim in order to protect the house. Obviously this is not the case, the debts are my hsuband's for which he feels incredibly guilty and there is no hope of a reconciliation.

My solicitor has told me that my husband should get his own solicitor to advise and act on his behalf as this will be considered demonstrating proof that he/we are not being dishonest/making a fraudulent claim.

So basically, what do I/we need to do to secure the house as a future for my son?
Any advice most welcome.

[MelanieGiles]

Hi ingrid and welcome to the forum

If your husband transfers his interest in a property to you at a time when he is insolvent, then this transaction will be overturned by a subsequent Trustee. This is not therefore a very good idea.

How much is the equity in your property at the moment, which I assume you own jointly?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[go_4_broke]

Hi ingrid,

It's true that your husbands' debts are his own, unfortunately so is his share in the house if owned jointly.

However it is more difficult for the OR or a trustee to realize interest in a jointly owned property.

If you could convince them that your ex. had made little contribution to the property since he left, you might get his share of any equity fixed at the time of separation, and if you can afford to, buy out the remaining interest yourself.

Failing that, if the object is to protect the property, he may be better off making an arrangement to pay his creditors small affordable amounts and avoid bankruptcy for as long as possible, on the basis his circumstances may improve and give you time to consider alternative arrangements.

-Best

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'

[MelanieGiles]

It is not any more difficult for a Trustee to realise an interest in a jointly owned property. A simple order for possession and sale will do the trick, and the Courts are obliged to make them unless there are very special circumstances. These can be obtained one year after the making of a bankruptcy order, but as Go-4-broke states you may be able to claim a larger share of the equity, but this will be balances against "notional rent" that you ought to have been paying your husband for his share.



Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk