Question:

Mum and dad have split up due to money problems. dad living with me temporarily.

dad got 45K of debt and no job due to business going bust. Mum and dad have a joint mortgage. Mum still works full time,, good income.

Dad thinking about going bankruptas unable to find new job nor keep up payments on debts. Has contacted debt advice people and has set up minimum payment plans for his 5 creditors. Mum dosent want to lose the house and wants to stay in it and She could afford to remortgage in just her name. Dad happy to receive nothing from her and just sign it over due to bad feeling.

If dad goes bankrupt after signing the house over to mum will his creditors still be able to make claim on the house and if so is there any way of avoiding this such as waiting a certain amount of months before going bankrupt ?

grateful for any advice

Answer:

In bankruptcy any property sales or transfers are asked about and looked back a few years, and can be looked back further if the need be, so there is no real way to sign the house over.

If your dad does go bankrupt, and there is equity in the property, his portion of any equity will be looked at in the bankruptcy. Since the property is in joint names, your dad and mum, the Trustee can give your mother the opportunity to buy-out your father's portion of any equity and pay it into the bankruptcy to preserve the house.

Thank you for letting me help you.

Jon

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