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Can I Transfer My Property To My Son Before Going Bankrupt?
Question:
We are currently failing in our IVA as my husband has lost his job and the iva people are filing for bankruptcy.
I would like to know how we could save the house, if we were to go into bankruptcy, can you put the house in a childs name for instance
Answer:
If you are made bankrupt, the Official Receiver assigned to your bankruptcy will look at any property you have owned, sold or transferred for the past few years. They can even look back further if need be.
If they noted the transfer of a property you had to a family member or anyone for that matter, they will questions this in more details.
The transfer could be perceived as fraud or trying to hide an asset and as such a BRO/bankruptcy restriction order could be issued keeping you in bankruptcy for up to 15 years instead of the usual 1 year.
It is possible if you are made bankrupt and the property has equity the OR/Trustee may allow a friend or family member to buy-out that equity or interest and you could stay in the property.
Thank you for letting me help you.
Jon
If you have a bankruptcy question you’d like to ask, just ask using this online form. All help is free.
Source: Can I Transfer My Property To My Son Before Going Bankrupt?