If someone wants to declare bankrupcy, is it possible to transfer the name of the deeds of a property they own, over to a relative to avoid the property being seized ?
2006-09-06 22:28:54 · 10 answers · asked by stdaveuk 3 in Business & Finance ➔ Personal Finance
if you do an IVA you can keep your property.
2006-09-06 22:47:05 · answer #1 · answered by Genius 2 · 1⤊ 0⤋
yes if you are really clever about it
however its highly unlikely that you will get away with it, if you try and fail then you are in deep doggy doo. Primarily as what you are trying to do is defraud your creditors.
if one of your creditors already knows you have property then they will naturally ask where has it gone, or where have the proceeds gone. They may even already have a claim on that property.
The Bankcrupcy officer may well detect your fraud and insist on thoise assets being reinstated in the bankrupcy - meaning forcing your realtives to return the asset or cash to the true value of the asset back the court. And is likely to make your terms of clearing bankrupcy a gret deal harsher
2006-09-06 22:45:29 · answer #2 · answered by Mark J 7 · 1⤊ 0⤋
If one has an asset that is big enough to cover the debt(s) one is not bankrupt.
If one transfers that asset into some trust or constructive trust arrangement (ie one can get to use the benefit of the asset (transferred)) to avoid paying ones debts at the very least the trust arrangement will fail and the asset be included in ones settlement pot. At worst be arrested for fraud. If the asset in question is a house it is almost impossible in the UK as there are registers and clear title deeds to follow.
SEE YOUR LOCAL CITIZENS ADVICE BUREAU
2006-09-06 22:45:25 · answer #3 · answered by Anonymous · 1⤊ 0⤋
no
all assets disposed before your bankruptcy have to be checked out and if you havent sold them for enough money (ie gave them to someone) the bankruptcy trustee has the legal right to go back and make them pay a realistic price.
oh and to attempt to hide something by doing that is also a criminal offence, which is all you need after going bankrupt.
they made me sell my £2 worth of premium bonds my granny gave me for my christening because there were legally an asset and had to be deposed of. oh i could keep the £30 in my wallet, but had to give them the £2 premium bonds, and i couldnt buy them back either..... they will know everything you own so dont risk it.
2006-09-07 01:45:45 · answer #4 · answered by alatoruk 5 · 1⤊ 0⤋
I think that this has to be done at least 6 months in advance and it couldnt be with a partner, effectively you would have to sell the house to a relative and then you would have to sign a contract saying that you were there legal tenants.
2006-09-06 22:31:32 · answer #5 · answered by damien r 2 · 1⤊ 0⤋
They could sell the property to you for 1p and then after being bankrupt they have to wait at least 3 years before they can reclaim it for the same amount.
2006-09-07 02:20:13 · answer #6 · answered by Steveh 3 · 1⤊ 0⤋
In a word no. It was spotted as a loop-hole last year and the law was changed to stop individuals transferring their assets to avoid paying their creditors.
Sorry. :(
2006-09-06 22:47:39 · answer #7 · answered by Lunar_Chick 4 · 1⤊ 0⤋
I second that. But just for the safe side, read about it from the source, Insolvency Helpline:
http://www.insolvencyhelpline.co.uk/bankruptcy/what-will-happen-to-my-home.htm
2006-09-06 22:40:25 · answer #8 · answered by bloodrose903 2 · 1⤊ 0⤋
I would think that the Inland Revenue have this covered, I doubt if you're the first person to think of this.
2006-09-06 22:35:25 · answer #9 · answered by RRM 4 · 1⤊ 0⤋
depends when you do it, and when you go bankrupt,if its with in 6 months they will claim it back, trust me, i know, and you could libel your self to 6 months prison
2006-09-06 22:36:28 · answer #10 · answered by Anonymous · 1⤊ 0⤋