Hi everybody
I came across this site and it seems very informative.
I have around ?ú50k debts with loans, but mostly credit cards and looking for an option. The debts were used to keep a business afloat ( foolish in hindsight!)Trust Deed ceratinly seems to be preferred as i don't think repayment would work and don't fancy bankruptcy.
My worry is that i transferred my house to my husband in 2005 and am worried that the creditors will think this is fraud and am also worried if a trustee can claim the property back.
Any advice would be appreciated.
Pat
Hi Pat
The transfer depends entirely on the financial position after the transfer took place. Very basically, if you were solvent (ie had more assets than debts) at any point after the transfer, then the transfer is fine. If not, then the Trustee can proceed with an Action of Reduction within 5 years if you're an associate or within 2 if you're not.
Hope this helps.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Mark, what does an "associate" mean in this context?
Hi Kirsty
Sorry it's chapter and verse, but A person is an associate of an individual if that person is the individualÔÇÖs husband, wife or civil partner or is a relative, or the husband, wife or civil
partner of a relative, of the individual or of the individualÔÇÖs husband, wife or civil partner. Also a person is an associate of any person with whom he is in partnership,and of any person who is an associate of any person with whom he is in partnership
and a firm is an associate of any person who is a member of the firm.
For the purposes of this section a person is a relative of an individual if he is that individualÔÇÖs brother, sister, uncle, aunt, nephew, niece, lineal ancestor or lineal descendant treatingÔÇö
(a) any relationship of the half blood as a relationship of the whole blood and the stepchild or adopted child of any person as his child; and
(b) an illegitimate child as the legitimate child of his mother and reputed father, and references in this section to a [husband, wife or civil partner] include a former
[husband, wife or civil partner] and a reputed [husband, wife or civil partner].
(5) A person is an associate of any person whom he employs or by whom he is employed; and for the purposes of this subsection any director or other officer ofa company shall be treated as employed by that company.
Phew!!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.