Hypothetical Question

[e.h]

Hi - this is just something that I have been wondering about for a while and thought, why not ask my friends at the forum! If somebody were to be declared bankrupt and they had negative equity in their property, what would happen to the property? I am assuming that if there is negative equity in the property, nobody has to buy out the property owner's interest because surely that would be buying an interest in nothing?

Thank you

Liz

[MelanieGiles]

Hi there

The beneficial interest in the property would still vest in a Trustee in bankruptcy - ie he would own it, and it is usual for a family member or friend to make a notional offer of payment (say £1) to have the interest transferred.

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

[e.h]

Thank you Melanie. I was just curious about this point. Thanks for your prompt reply, as always.

Regards

Liz