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burrgins
Junior Member
175 Posts |
 Posted - 27 June 2008 : 17:06:59
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Hi, I will be going bankrupt next month (after months of treading water)
My wife and I bought a house in Aug 2006 and her parents helped us with the deposit by giving us £5000 (which was the only money put down) with the understanding that we paid it back when we could afford it with no solid fixed date set when to pay it back.
We then sold and moved Aug 07 and after the fees we still had the £5000 in the house so moved that along to new mortgage.
My wife and I split up and I moved out in January this year. (we are not divorced or legally seperated) and as a result in May she transfered the mortgage into her and her mother's name and took my name off it, I received no money from the transfer at all as in my eyes the equity was actually my ex's not mine, how will the O.R view this?
Is £2500 still classed as my asset that I gave away?
To be honest I wouldn't be surprised if the house is now in negative equity with the current market and the mortgage still has 3 years of early redemption penalties in place, can the O.R hold onto the house for upto 3 years just in case it gains value? Or can my Ex just buy back the equity if there is any as soon as the OR reviews my case?
Sorry thats really long winded, it makes my head spin just typing it, let alone reading it. ;)
Also the ONLY asset I really have is a £800 TV that was bought on a card last year.
My brother has offered to buy it off me for £500 if needed, would it be a good idea to sell it now or wait and see whether the OR wants it? Can my brother buy it after my bankruptcy to save the bailiffs coming round?
Many thanks for any help :) |
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burrgins
Junior Member
175 Posts |
Posted - 27 June 2008 : 17:39:46
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Just thought of a REALLY important question... sorry.
When we first bought the house in aug 06 my mother took out a loan for me and I paid off some of my current debt so that we could reach the mortgage multiples to buy the house (which I really hope isn't technically classed as fraud).
Is my mother classed as a creditor even though nothing is in my name? Or due to the circumstances is it legally just tough on my mother?
I have NO intention of NOT paying my mother the full amount and will continue to pay her loan until it is paid (whatever happens!)
Should I even tell the O.R about this matter? Or will they just dismiss it and order me to pay pro rata?
Is there any way I can get this loan transfered back into my name so that I can add it to my bankruptcy package? I have been paying a standing order into my mothers account since it started, I feel so guilty that this hasn't worked out as planned!
The loan still has 5 years to run and balance is approx £12000 at the moment
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Edited by - burrgins on 28 June 2008 00:31:21 |
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melanie_giles
Senior Member
1191 Posts |
Posted - 30 June 2008 : 00:47:08
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Your mother is indeed a creditor and this will need to be declared on your statement of affairs. You will not be permitted to make any payments to her during the period of the bankruptcy.
With regard to the property transaction, I do not think that this gives cause for concern given that your mother in law funded the original deposit.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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burrgins
Junior Member
175 Posts |
Posted - 30 June 2008 : 13:41:51
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ok, thank you for the response the equity is a relief.
The issue with my mother is concerning but I'll sort it, is there any legal way to move her loan into my name or does the O.R have powers to put it in my name from Lombard Finance considering that it was initially for me? I know thats a long shot and I assume that its just tough luck.
Looks like I'll have to dig graves or something for cash in order to pay her.
I don't have any available credit to move the outstanding balance into my name.
Many thanks |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 30 June 2008 : 15:24:34
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Hi Burrgins and welcome to the forum.
Technically, your mother will be classed as one of your creditors and any amount owing will be written off. What are the monthly payments?
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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burrgins
Junior Member
175 Posts |
Posted - 30 June 2008 : 19:22:18
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I pay her £245 a month with another 5 years to run. If the debt gets written off for me it still leaves her having to pay it to lombard though as it's in her name and not in my name at all :(
I obviously will not let my mother down and leave her with it on her own and will have to get a cash only job to pay her.
In retrospect it would have obviously been best if it was in my name as I could have added it to my bankruptcy, I just wondered if it was possible for the O.R to overrule the fact it's my mothers name so my mother wouldn't be held responsible for it, but I really think thats clutching at straws.
Many thanks for the reply |
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melanie_giles
Senior Member
1191 Posts |
Posted - 30 June 2008 : 21:13:08
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There is no way you will be able to persuade your mother's creditor to put the account in your name I am afraid, so it would be better to come clean to her as soon as you can and then move forward.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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burrgins
Junior Member
175 Posts |
Posted - 01 July 2008 : 05:02:20
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I have always been straight with my mother about it and she is well aware of my situation.
I'm ill (which is the reason for all of these money problems) and have worked many hours to try to stop this happening but I can't physically work anymore and my biggest fear is that I may not actually be around to keep paying her each month.
I know thats life and I shouldn't have ever asked her to take the loan out but I really don't want her to have the extra worry.
I just thought the O.R may have some magical powers to overrule the loan and put the debt in my name.
Thanks very much for your time, I appreciate it :) |
Edited by - burrgins on 01 July 2008 05:37:02 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 02 July 2008 : 11:50:11
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Hi Burrgins,
I'm afraid I agree with Melanie. However, bear in mind that in an IPA/IPO, the maximum they will take is 70% of disposable income so you may still have enough spare to cover these payments.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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burrgins
Junior Member
175 Posts |
Posted - 02 July 2008 : 17:27:01
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Ahhh, ok thanks alot for all of your help.
I'll sort it at my end now (crosses fingers) |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
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Topic |
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Question on slightly complicated equity ownership
