I wanted to ask you a question from a buyers perspective. If a transfer at undervalue is undertaken between an unmarried couple breaking up, and both parties have agreed on a settlement. Would a declaration of solvency and bankruptcy check be enough to protect the buyer in the event of the seller becoming bankrupt in the future? If the seller is fully solvent and has no debt, does this mean that a trustee in bankruptcy cannot put aside a transfer in the unlikely event that the seller becomes insolvent when proven that the transfer was not performed impending a bankrupcy? I find it very confusing seeing that the buyer has little protection within the law in the case. Surely there is protection for a transaction that is honest and at arms length?
We are not a bankruptcy site, so cannot respond with any certainty on this point. However, circumstances vary from case to case and, indeed, OR to OR as to what actions they will take and what lengths they will go to to recover assets due to creditors.
Any recent transaction would have to be examinied and one at less than market value will be scrutinised further as to the circumstances of the sale. An honest, arms length transaction should have supporting evidence as to the reasons and the OR will judge if this is sufficient to ignore the transaction.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
