Creditors rights after a Transfer of Equity

[Lukestar]

Hi, I've searched the site for a situation similar to my own but with no joy, so here goes..

I'm currently going through a transfer of equity process. When my home was purchased a few years ago, my wife didn't have sufficient earnings at the time, so I set up the mortgage with my brother on a joint basis. He's never lived at the property and has never paid any monies towards the mortgage payments and this can be proved. He's in the process of setting up an IVA but didn't declare the house as part of his assets but it does appear on his credit report. It's at the stage of signing a form to go ahead with the creditors meeting.

Do the creditors have rights to the property should the transfer be processed?

Thanks in anticipation.

[MelanieGiles]

Hi Lukestar and welcome to the forum

He will need to declare his interest in this property as part of his IVA proposals. If he is able to demonstrate that his involvement was purely for convenience, and that he has not contributed anything into your property, creditors may be prepared to accept that arguement - although this arrangement does seem a little odd and creditors are bound to be suspicious.

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

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Lukestar]

Melanie, thanks for the reply. My brother is concerned that should he make the declaration regarding the property that the IVA proposal would be declined. Or would each case be judged on its own merits?

My wife and I are very concerned regarding the legality of continuing a transfer of equity without my brother making the declaration.

[Adam Davies]

Hi
He must declare this property to his IP as a simple search of the land registery will flag it up.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp