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Topic starter
13/02/2009 4:29 pm
Hi all
just came across this site and wonder if someone could help.
I have my own business which has opertaed very profitably for the last 7 years. I transferred my interest in my house to my wife in 2008 in case the worst happened, but no payment was made.
I may be about to lose one of my biggest contracts and am worried over the future of the business and my own circumstances as I have fairly hefty personal guarantees to the bank.
Is my house at risk under a Trust Deed or worse if I go bankrupt?
Gordon
13/02/2009 9:39 pm
Hi Gordon
There is a perception that the transfer of assets is somehow a way of cheating creditors, when actually it can make good business sense.
The general rule in insolvency is that asset transfers can be challenged up to 2 years if transferred to a non associate or 5 years to an associate (family etc) However transfers have valid defences.
If you were solvent for one day after the transfer, ie your assets were greater than your debts, then the transfer is valid and untouchable. So to put your mind at ease, you just need to show solvency at one point after the transfer.
If you can show the above, the transfer is fine.
Hope this helps.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
14/02/2009 4:19 pm
Hi Mark
many thanks for the information.
You make it sound so easy.I guess I've been worrying for nothing.
Thanks again
Gordon
