can you please advise me what is best

[parrb]

hi my mum has just told me she has £63,000 worth of debts she is 72 yrs old. They are various debts from credit cards loans and a £12, 000 mortgage. She is teriffied she will lose her home. i could buy her house for a reduced price just so she has somewhere to live but i don't know if this is legal if she then pays off as much as she can and then declares herself bankrupt. can you please advise me what is best. thanks

[iva experts]

Welcome to the Forum parrb,

I would not advise that you buy the house from your mother for a reduced price, this is viewed as giving away an asset. When you mother declares bankruptcy the courts will search back 5 years to see if any assets have been given away. If she has done so, the courts can retain the money from the purchaser.

Does your mother owe £63,000 unsecured debt? or does this include her mortgage? How much equity does your mother have in her property?

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

[parrb]

this amount includes her mortgage the rest will be unsecured debts i think. her property is worth around £83,000. Thanks for your help i know nothing about any of this and appriciate your advice. what do you think her best options are?

[MelanieGiles]

Your Mum has more equity in her property than debt, and is therefore not a suitable candidate for an IVA. If she wants to hand onto the property, then a DMP is probably the best option, or alternatively she could sell or equity release to deal with her creditors that way.

I suggest that she takes specialist mortgage advice with regard to any form of equity release scheme - and the mortgage experts on the forum will probably be happy to help.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp