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I am currently in a position where i'm being chased for a debt by a collection agency. I have no job at the moment, nor savings and I live with my parents. I have a house in my name (no mortgage) that I rent out, but has been vacant for the past few months. This property , however, was purchased with my parents money (which they have proof of), but was put in my name...i was paying the mortgage on it for about 18 months (approx £110 per month) after which i had financial difficulty. The remaining payments were then made through my father's account and finally paid off in full last month by my father. It is really my parents' property, but was just put in my name.

Is this property at risk if the collections agency decide to freeze this asset...is there any recourse or protection because my parents actually paid for it, and therefore should not have to pay for my mistakes?

Also, what if i were to transfer the title deed into their names before the collections agency took any action?

Your advice would be greatly appreciated, as I am worried sick right now....and do not want my parents to suffer as a consequence of my situation. Thanks.

Hi castro.goon and welcome to the forum

The property in your name is at risk, and your parents will have to prove their claim in any subsequent bankruptcy. I suggest that you take specialist legal advice on this issue, which might lead to you transferring the property back - but be very careful not to effect a transfer at undervalue. You will undoubtedly have benefitted in some way from this property ownership, and it may be better to come clean with your parents about the debt and see if they could assist you to make an offer of repayment directly to the creditor.

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

Hi castro.goon and welcome to the forum

The property in your name is at risk, and your parents will have to prove their claim in any subsequent bankruptcy. I suggest that you take specialist legal advice on this issue, which might lead to you transferring the property back - but be very careful not to effect a transfer at undervalue. You will undoubtedly have benefitted in some way from this property ownership, and it may be better to come clean with your parents about the debt and see if they could assist you to make an offer of repayment directly to the creditor.

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