Discussion
What if I had loads of personal debt - credit cards, owed the tax man a lump etc, and so before I declared to the world that this was the case, I transfered my one major asset (house) to my wife. Would the creditors be able to go after the house? Or would it be safe given my wife was not liable for my personal debt?
Thoughts please.
D
Thoughts please.
D
The only way to do this would be to sell your share of the house (equity) at market value, to your wife. If this leaves you with a chunk of money then you would be expected to pay your debts with this.
If you then go bankrupt and both of the above haven't happened, the the Official Recevier can just ignore the transactions as being purely to evade your creditors.
If you then go bankrupt and both of the above haven't happened, the the Official Recevier can just ignore the transactions as being purely to evade your creditors.
I thought that if the debt was unsecured like credit cards and most personal loans etc then they couldn't take the house if you defaulted on the loan - not sure about bankruptcy
Best place to check would be the "Debt Free Wannabe" forum on www.moneysavingexpert.com as they have some pretty clued up posters there!
Alex
Best place to check would be the "Debt Free Wannabe" forum on www.moneysavingexpert.com as they have some pretty clued up posters there!
Alex
Edited by alexB on Friday 8th December 14:46
They can initially apply for a CCJ and providing this is paid as agreed by the courts then no further action can be taken, though your credit rating is stuffed for 6 years. If you simply do not/will not pay, then ultimatly a creditor could apply for your bankruptcy.
I was under the impression that the OP was looking to avoid his debts but not lose his house and this can be a difficult thing to do. (though not impossible!)
I was under the impression that the OP was looking to avoid his debts but not lose his house and this can be a difficult thing to do. (though not impossible!)
Smartie said:
They can initially apply for a CCJ and providing this is paid as agreed by the courts then no further action can be taken, though your credit rating is stuffed for 6 years. If you simply do not/will not pay, then ultimatly a creditor could apply for your bankruptcy.
I was under the impression that the OP was looking to avoid his debts but not lose his house and this can be a difficult thing to do. (though not impossible!)
I was under the impression that the OP was looking to avoid his debts but not lose his house and this can be a difficult thing to do. (though not impossible!)
Not entirely correct, if a CCJ (county court claim in the first instance) is applied for and the debt settled before judgement nothing should show up on credit checks. Even if Judgement is obtained and the debtor pays within the prescribed period (21 days I think) then a "certificate of satisfaction" is issued. The judgement will still show up on credit checks but it will also show the debt was paid quickly and will work in your favour. Only if you get judgement and dont pay up fast will you find it very difficult indeed to get credit, or at least credit at a sensible APR.
Smartie said:
They can initially apply for a CCJ and providing this is paid as agreed by the courts then no further action can be taken, though your credit rating is stuffed for 6 years. If you simply do not/will not pay, then ultimatly a creditor could apply for your bankruptcy.
I was under the impression that the OP was looking to avoid his debts but not lose his house and this can be a difficult thing to do. (though not impossible!)
I was under the impression that the OP was looking to avoid his debts but not lose his house and this can be a difficult thing to do. (though not impossible!)
Indeed pretending to be divorcing the wife and getting somone you trust to put a charge on the property will keep the sharks at bay for good year or so.
plasticpig said:
Smartie said:
They can initially apply for a CCJ and providing this is paid as agreed by the courts then no further action can be taken, though your credit rating is stuffed for 6 years. If you simply do not/will not pay, then ultimatly a creditor could apply for your bankruptcy.
I was under the impression that the OP was looking to avoid his debts but not lose his house and this can be a difficult thing to do. (though not impossible!)
I was under the impression that the OP was looking to avoid his debts but not lose his house and this can be a difficult thing to do. (though not impossible!)
Indeed pretending to be divorcing the wife and getting somone you trust to put a charge on the property will keep the sharks at bay for good year or so.
Transferring assets (in the case of secured loans / bankruptcy) to a third party purely to avoid re-possession is easily spotted by creditors. This process can, and is often overturned, it is a fruitless exercise. Don't kid yourself. As for putting "a charge over your property" major creditors will take preference and will object to further charges being placed over secured assets. A charge cannot be placed without due cause or reason. If this course of action is adopted you run a very real risk of committing fraud, the penalties for this are severe.
Edited by jamesuk28 on Friday 8th December 21:20
Go and see an Accountant who is also an Insolvency Practitioner (IP) - loads in the Yellow Pages - meeting will be free and you will get proper expert professional advice on how to survive or at least limit damage.
Used to work in this field - with a bit of creative thinking your house should be safe - but definitely get advice from an IP.
Don't go to any of these so-called debt management companies - they will just try to sell you a loan/mortgage/truss you up.
Good luck.
Used to work in this field - with a bit of creative thinking your house should be safe - but definitely get advice from an IP.
Don't go to any of these so-called debt management companies - they will just try to sell you a loan/mortgage/truss you up.
Good luck.
deadslow said:
Go and see an Accountant who is also an Insolvency Practitioner (IP) - loads in the Yellow Pages - meeting will be free and you will get proper expert professional advice on how to survive or at least limit damage.
Used to work in this field - with a bit of creative thinking your house should be safe - but definitely get advice from an IP.
Don't go to any of these so-called debt management companies - they will just try to sell you a loan/mortgage/truss you up.
Good luck.
Used to work in this field - with a bit of creative thinking your house should be safe - but definitely get advice from an IP.
Don't go to any of these so-called debt management companies - they will just try to sell you a loan/mortgage/truss you up.
Good luck.
Good advice.
POORCARDEALER said:
It isnt difficult to avoid if you know what you are doing.get some expert advice.........wont bore you with the details but an aquaintance of mine went bump for £400K personally and is still living in a £1.7M house in his wifes name!
Will have been a side arrangement in place for a good few years first. Planned beforehand.
Boosted.
Ok the unpopular view first. You've accrued personal debt, you have assets to pay it off. So there is your answer. Welcome to the world where there isn't a money tree in the garden....
On the avoiding your debt front, it is increasingly difficult to do, as said obvious transactions at an undervalue can and will be unpicked (at your cost).
Have you signed any personal guarantees to the bank etc? You may have exposed your wifes "share" of the property already.
You need good advice from a specialist asap. Expect your lawyer to want funds on account upfront...
It's not a nice place to be, i hope you get it sorted.
On the avoiding your debt front, it is increasingly difficult to do, as said obvious transactions at an undervalue can and will be unpicked (at your cost).
Have you signed any personal guarantees to the bank etc? You may have exposed your wifes "share" of the property already.
You need good advice from a specialist asap. Expect your lawyer to want funds on account upfront...
It's not a nice place to be, i hope you get it sorted.
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