I want to sell my property to a family member before filing for bankruptcy I intend selling the property to repay the mortgage but still live in the house how will the receiver react to this as the property will be sold below the market value that is if you can establish a value in today’s volatile climate
You have to be careful that you are seen to receive fair value for the property (above 75% of market value). If not, the OR will deem it as a transaction at an undervalue and can unwind the deal and sell the property themselves and disburse the net sale proceeds to yourt unsecured creditors on a pro-rata basis.
You actually have to be seen that you exposed the property to the market properly and brokered a sale based upon a professional agent's advice. Not sure where the 75% figures comes from Julian?
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
Thank you for the information now can i dig a little deeper on this subject i.e. i now appreciate that the OR will not take favorably to me selling my property to family to obviously preserve what equity interest i may have but is there a time scale to this i.e. if i were to sell the property 6 months before any bankruptcy move how do i stand with the OR theoretically the property has been sold and i no longer own it
It doesn’t matter; the OR is still within his rights to do what he has to do!
Why don’t you get a couple of valuations and ask the estate agents how much would it sell for quickly and in todays given market place? You may be surprised to find that its value isn’t as much as you thought it would be. But can i make something fundamentally clear, under any circumstances DO NOT do a sale transaction that is well below its valuation as you are asking for trouble, as on part of your petition section 3.5 it asks this:
Have you in the last five years given away, transferred or sold for less than its true value any property or possessions you owned? This includes the surrender of life, endowment and pension policies.
I want to sell my property to a family member
Posted - 04 July 2008 : 17:04:28
