Any transfer of property could be reversed and if you are sitting on considerable equity that would be at risk during bankruptcy.

Paul

Hi johnnyboy

If the property is in joint names and there is any form of insolvency, then a trustee would look at half the equity in the house.

If you were to transfer title, which you will find difficult with the mortgage company, a trustee can challenge a transfer carried out in a 5 year period before insolvency.

Do you know how much the property is worth and what the outstanding mortgage is and the total level of your wives debts?

Mark

Hi Mark

Our property is worth around £65,000 with £10,000 still to pay and my wife's debts are £40,000. We also have a secured loan for £25,000.

Hi johnnyboy

Looking at the info, the house would probably value a bit less as is normal in trust deeds. Take away the mortgage and secured loan you are left with, say, around £20-£25k. If its jointly owned, your wife's share would be around £10k.

If I was looking at this, I'd structure it in such a way that it's an equity trust deed and you as third party, effectively buy ack the equity over a period of time ie £250 x 40 months.

All subject to valuation, redemption figures of course, but workable nontheless.

Mark

Good shout Mark. I'd agree this may well be your best way forward johnnyboy.

Hi
Thanks for the replies. What's an equity trust deed with myself as third party? would this be an acceptable solution if my wife goes down the sequestration route?

Hi johnnyboy

Yes, roughly same rules apply in sequestration.

Very generallyyour wife has no income for a contribution, so a proposal is made using her net share of the equity. You or relative etc could then pay this up over a 3 year period. It would safeguard the house and deal with the debts.

Mark

Cheers Mark!