Questions you have before making a decision to go Bankrupt and the Bankruptcy process

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ByDuff
#212733 ...Am I correct in thinking that if my OH and I sell our house and split any profit made, as long as my half goes into my BR estate, then we won't be seen as attempting to make assets unaccessible to the OR? Also, I assume it can't be sold for less than market value to get a quick sale?

On another note, my only contribution to the house was £8,000 towards the deposit in Nov 2007 - I am a student with no income and have not made any further input into mortgage or housekeeping - is this likely to reduce my beneficial interest in the house?

Cheers,

D.
Byhardyzgirl17
#212756 Of course it can be sold for below the current value !!!
My house is worth 80k and is in repo , if they get an auction offer of 65k they will except it and you will be stuck with the short fall.

If you go bankrupt you have to declare any assest dispossed of in the last 5 years including your house. so if you do this they may investigate you and your dealings further ??? x
ByDan Small
#212758 Surely "market value" is what someone will pay for it and subjective at best? Just because next door sold for £200k, doesn't mean someone else will buy yours for that. But the "market value" of the house could be argued as £200k?
ByCrunchynut
#212763 If you are selling through an Agent and it's dealt with properly then it's unlikely the OR will query 'market value' - however this doesn't mean you can sell it to Great Aunt Aggie for £ 4.50 and expect the OR not to investigate :)

Whilst hardyzgirl's comment is appropriate to her situation, bear in mind that it's not 'her' that's deciding on the market value - it's the mortgagee. In a private sale, the same rules don't apply.
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ByDuff
#212768 It will be a private sale and not a straight forward one, because my OH runs a clinic out of the house and he's selling a "package"
We were hoping to just pay off the mortgage with the rest of the money going into my OH business. The mortgage is £370,000 and the house was worth about £400,000 last time it was valued in Jan 09. So if the house were to sell on paper for say £375,000 - would that £25,000 difference be enough to put their noses out of joint?
ByCrunchynut
#212772 I would anticipate that that could cause you a problem further down the line as it's not an equal split.
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ByDuff
#212774 Hopefully not because on paper the house and business transactions will be separate entities. Although my OH runs his clinic out of part of the property, we own the house 100% privately.

For example

Total amount to buy house plus patient list/goodwill = £420,000
Amount alloted to house = £370,000 (ie just pay off the mortgage)
Amount alloted to business = £50,000

So would the OR even have to be made aware of the business transaction since it has nothing to do with me anyway???
ByCrunchynut
#212786 just make sure that the conveyancing is absolutely bullet proof to show this. i take it you're not associated in any way with the business ?
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ByDuff
#212788 No I'm not at all involved, that's why it's so important to me that any action I take will not affect my OH business :)
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