often there are questions posted regarding the purchase of beneficial interest in a property following bankruptcy and I refer in the main to negative equity situations.
When only one party is going BR and the property is in negative equity the property owners find themselves in limbo awaiting the OR's decision on whether or not the BI of the bankrupt party will be offered across to the non bankrupt party (usually for £1 + fees). They have read it again and again on the forum but worry they will be the exception to the rule.
Providing you are in possession of a genuine and recent valuation report confirming the negative equity situation it is perfectly acceptable for the bankrupt party to sell their BI across to the non bankrupt BEFORE actually declaring their bankruptcy.
Thus the matter is resolved and the couple do not have the period of anxiety that comes with leaving the decision to the OR. There is no equity so it NOT a transfer under value and therefore perfectly legal. More importantly the intended bankrupt has control.
I wish i had of found this site earlier as we looked into doing this as we are in neg equity, however in good old CAB style they told me i was not allowed to do it - saying that they got ALOT of facts wrong with me.
Great advice for those who are newly looking at BR
The weights are coming off my shoulders very slowly, but making such a big diference !!
Purchasing Beneficial Interest
Posted - 12 November 2008 : 21:03:01
