Welcome to the forum Chelle.

I'm glad you've asked this before making a decision. Becoming bankrupt while being a part-owner of this property could cause real problems.

I suggest that you obtain further direct advice now that you have become aware of this property transfer.

Hi Chelle,

I’d urge caution before proceeding with a Sequestration. You ideally want to speak with an expert on this to establish what complications there could be. You could reach out to Kevin or Sharon the two experts on the forum for advice.

Can you tell us how much debt you and if you are employed and have any other assets?

Thanks for your replies

The debt is about 12,000. I am employed currently part time but am increasing this to full time in the summer. My preference would be to make arrangements to pay these debts as obviously I was completely unaware about the house and wouldn’t want to lose that for my parents.

I don’t have any other assets

Hi,

On the face of it without the life rent and property situation a Sequestration could probably have been the most suitable option.

Have you thought about a Debt Arrangement Scheme? This has nothing to do with any assets that you have and it a repayment plan whereby you make a monthly payment until the debt is repaid. You do need to be in a position to make a suitable payment per month that the lenders will accept.

Let's say you can afford £150 per month toward the plan. Based on £12,000 of debts and if you used the free sector to set up the plan it would take approximately 6.6 years. This is just to give you an idea of a possible payment and timescale.

It could still be possible to look at a Sequestration but a lot more information would need to be found out by an expert about the property and life rent etc.

I’ll look into this thanks for the advice