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

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By chivasgirl
#3475 I have asked the Expert about the practicalities of selling my share of our BI (£3.5k at best) to my husband, as Simon has alot more knowledge of my particular situation. So I am just asking for experiences on this one.

Has anyone ever sold their share of the beneficial interest to their partner, when the partner would then have a 100% share of the BI? My husband does have his own financial worries but he is lucky enough to have parents who are prepared to help him for the next year with his commitments and to help fund him through a plumbing course! They are prepared to purchase my BI, but only through the OR, they don't want to deal with a trust deed beforehand after some scaremongering by their solicitor. We are concerned about it taking a long time to deal with this and estate agents in our area have advised that prices are likely to continue to increase to our definite disadvantage. We have had a paid for valuation in the last 2 weeks. So before we approach his parents about this, we are researching the pros and cons.

Any feedback appreciated, as always.
By Si
#3476 Hi again Lorna. Your relatives really are dragging there heals on this arnt they and you have my sympathy. Do they realise that in the month or so since you starting thinking about this or trying to achieve it that the house may well have gone up 5K or more and will continue to rise while they mess around ??? Be that as it may the whole principle is simply that the BI interest the person has is bought from them in advance of going bankrupt if at all possible for all the reason previously gone over in depth. Who that third party is makes absolutely no difference at all as the question the Or or trustee will ask is was the transaction at undervalue or not on the day it went ahead. If the answer is no and the true market value is paid is does not matter who buys the interest. There are obvious dangers in your partner buying it as the other route a transaction can be undone is that it was designed (AS IT IS IN YOUR CASE) to put an asset beyond the reach of the bankrupts creditors. I have never seen a case where a transaction has been undone on the latter grounds when the purchaser is a relative or third party but I HAVE SEVERAL TIMES WHEN ITS THE OTHER JOINT PROPERTY OWNER. It would be just your luck to get an examiner, trustee or Or thats takes this view and if they do the transaction is worthless and will be undone. His parents might as well throw the money down the drain. Its your and his risk to take but I would strongly advise against it not only for this most obvious of reasons that its unlikely to stick in the first place but that thats all the more that his creditors could go for if anything untoward occurs. If the only option is this then you should stop messing around and go ahead without any TD in place and hope for the best. To be honest with you if it were my parents I would stand up to them and give them a huge shove in the right direction from behind where its needed and or threaten to go bankrupt myself unless they got the trust deed drawn up in their name but thats a personal view only and what I would do. You must make your own mind up but don't take to long as your property is going up in value all the time. Rememeber that a paid for valutaion done a month ago would now be out of date !!! and so any trascation based on it would be at risk :( :(