Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

Bymike1y111
#56380 Does anyone have any info/experience of getting someone to buyout thier BI in Scotland. My lawyer doesnt seem to know apart from changing percentages at land registry, but that still does not protect the BI.

A sample deed would be great! and how would this stack up in a scottish court.

Thanks alot
ByJLP
#56613 Is this for Bankruptcy or a Trust Deed?
Bymike1y111
#56621 I might later in the year be going for the trust deed/bankruptcy and would like to protect my property which is in joint names. We have a huge redemtion penalty thus cannot afford for wife to buy the property outright.

Need to try and get her to buyout my beneficial interest to be on the safe side. It might be that in 6-9months time i will be in a stonger position and may not have to go for TD but at least i am keeping property safe.

Thanks
ByJLP
#56629
mike1y111 wrote:I might later in the year be going for the trust deed/bankruptcy and would like to protect my property which is in joint names. We have a huge redemtion penalty thus cannot afford for wife to buy the property outright.

Need to try and get her to buyout my beneficial interest to be on the safe side. It might be that in 6-9months time i will be in a stonger position and may not have to go for TD but at least i am keeping property safe.

Thanks


Do you have equity in the property........
Bymike1y111
#56683 around 20k. I will get someone to hold my 10k until such time as to put in a lump sum into an IVA, but dont want to go for an IVA just now as i might be able to pay all my debts but want to be on safe side
Bymike1y111
#56687 forgot to mention debt is around £80k. I am self employed(Ltd comp). Tendering for a very big contract which would meani could pay off everything as lump sum. Also quite a few debts will become statute barred around august.
ByJLP
#57417 I personally wouldnt get someone to buy out your BI yet. The danger would be if someone took you to Court and tried for an Inhibition Order (not common in Scotland although it does happen) Order or served a Statutory Demand. I would only do that when I was sure that I was going to go for a TD/Seq option.

Any creditors actually taken you to court yet- I dont mean the usual DCA blustering, pay up within 7 days or we will start legal action etc etc.
Bymike1y111
#57421 Thanks JLP

i would just like to be safe. I have had the house valued and the equity is 20k. House prices are rising sharlpy where i am and my worry is that by the end of the year it could be 60k!

If i got the percentage ownership changed and did the BI as well, would stand in court if it came to that?

Cheers
ByJLP
#57651
mike1y111 wrote:Thanks JLP

i would just like to be safe. I have had the house valued and the equity is 20k. House prices are rising sharlpy where i am and my worry is that by the end of the year it could be 60k!

If i got the percentage ownership changed and did the BI as well, would stand in court if it came to that?

Cheers


If you are intending to keep the money and hand it over to your Creditors then you may get away with this, but remember IP's and the Accountant in Bankruptcy have the power to go back 5 years for this reason eg people transferring interest to other people to protect their house.

Also is the £20k free equity or is the huge redemption penalty included?
Bymike1y111
#57690 redemption penelty not in the price. 11k redemption penelty! so really 9k equity in the property
ByJLP
#57905
mike1y111 wrote:redemption penelty not in the price. 11k redemption penelty! so really 9k equity in the property


Well in that case- and this is just MY PERSONAL opinion, I wouldnt get anyone to buy out your BI until you are completely sure what route you are going to take. Most (good) IP's if you are going for the TD, will get you to remortgage anyway, if your House Prices take a drastic rise. If you have 9k equity in property, only 4.5k is yours, so some of the IP's I use will probably let you protect that for about 500 quid or thereabouts. I will confirm this with a phone call on Tuesday when I am back at work...... :D
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