www.iva.co.uk

Hello
How far back does the Official Receiver go when looking into your financial history. I heard somewhere that they go back 12 months is this correct? or do they look back further.
The house has been in my wifes name for 18 months will our house be safe should I become bankrupt, or will they force my wife to sell
Thanks

Generally three years, but possibly longer if you have effected transfers of property at undervalue or paid creditors in preference. If you transferred your interest in your house to your wife 18 months ago for no value, then this is definately something which would be investigated.

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

Thanks Melanie
Would this be the same if we were divorced and my wife had bought out my share of the equity at market value?
Thanks

No - if the transfer was at full market value at the time, this transaction could not be challenged.

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

Thanks again
Just one last question on this subject.
Am I correct in thinking that as long as my wife paid me my share of the equity at full market value the property would be safe, even If we remained married.
Thanks

Yes - because from that time onwards she has owned the property entirely in her own right. Is this actually what happened to you and, if so, was it done on the basis of a full professional valuation?

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

Yes this was done on the basis of a full professional valuation. To be honest The equity released was not that high. I paid the equity into a DMP to be paid to creditors, was this the right thing to do?

Would it have made a difference if the valuation had not been a full professional one? For example could I have used a couple of estate agent valuations?

Just wanted to check
Thank you for your help

No - so long as they all got a fair and equal share of the money. You are safer with a full valution, but an estate agents report would still have been fine.

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

Thanks Melanie
Just thought of something else. Prior to my wife buying me out by paying me 50% of the equity the house was in my name only. We assumed that as we were married she would be entitled to 50% of the equity even though her name was not on the mortgage, is this a correct assumption? or should she have paid me 100% of the equity at the time.