england_neil Posted November 21, 2006 Share Posted November 21, 2006 Since my student days, I've been in debt and due to bad financial decisions since college, credit cards, loans, overdrafts etc, it got slowly bigger and bigger. I paid a lot off and decided to buy a house with 2 other mates, working out I would save on rent and get the equity from the house to pay off any debts. Due to unforseen circumstances (i.e. The surveyor not spotting dry rot which cost us over £10,000 to put right and a girl leaving oweing over £1000 in bills and £900 in unpaid rent), I have had to take on more debt to cover these and therefore find myself really struggling to cope. I have resorting to sellling lots of my possessions off on ebay, just to get by recently, as the repayments have all increased. My main question is how long does it take to sign over a house and what are the approximate costs? Also, can the courts reclaim it if I go bankrupt if I've signed it over a short period before? The reason is my Mum lent me my deposit money and I would like to repay her before declaring bankruptcy (i.e. sign my share over to her). I have not come to this decision lightly and have struggled to repay everything as much as I can. The problem is that my girlfriend, who is Australian wants me to move back to Australia with her when she returns at the end of her visa. I would like to pay my debt back, but can't see how I can as (although the quality of life is better), the salaries are lower in Australia - hence the £ to $ ratio would mean I have to earn a lot more than I do now. I don't live expensively and have no car/real assests to sell. Any help/advice appreciated! Also: I don't need telling that I should've thought about this before I got in this debt - Thanks! Link to comment Share on other sites More sharing options...
savbaby Posted November 21, 2006 Share Posted November 21, 2006 you can hand your keys to your lender and its voluntary repossesion, they will sell it and any profit after the mortgage and fees are paid will be given to you Link to comment Share on other sites More sharing options...
Titian Posted November 21, 2006 Share Posted November 21, 2006 Are the two other people still involved with the house or is it all your responsibility at the moment? Link to comment Share on other sites More sharing options...
brailz Posted November 21, 2006 Share Posted November 21, 2006 Sorry to hear of your situation. There are specific laws to stop you signing over property/assets before you declare bankruptcy. Be very careful and get a good lawyer/account else you could have the fraud squad knocking at your door. Link to comment Share on other sites More sharing options...
cgksheff Posted November 21, 2006 Share Posted November 21, 2006 Couple of points: The trustee/reciever may apply to the court for an order restoring property to him or her if you disposed of it in a way which was unfair to your creditors (for example, if before bankruptcy you had transferred property to a relative for less than its worth). You should look very carefully at how bankruptcy could affect your setting up a new life in Australia where, I assume you will need credit. What you are asking about is dancing on the edge of defrauding your creditors. It may not be wise to discuss such things on an open forum. There are tax considerations involved in donating an asset to your mother. Link to comment Share on other sites More sharing options...
Titian Posted November 21, 2006 Share Posted November 21, 2006 Who would you be signing the house over to also? Would it be your mother or the two other people involved? Link to comment Share on other sites More sharing options...
england_neil Posted November 21, 2006 Author Share Posted November 21, 2006 Thanks for the advice so far. The other 2 are still involved in the house Link to comment Share on other sites More sharing options...
Titian Posted November 21, 2006 Share Posted November 21, 2006 Do they want to take over a bigger share of the house? Link to comment Share on other sites More sharing options...
cgksheff Posted November 21, 2006 Share Posted November 21, 2006 Who would you be signing the house over to also? Would it be your mother or the two other people involved? (i.e. sign my share over to her). Selling your share (at market value) to get some cash to give to Mum would sound a better option.... .... or would your other debts just gobble it up? Link to comment Share on other sites More sharing options...
brailz Posted November 21, 2006 Share Posted November 21, 2006 Thanks for the advice so far. The other 2 are still involved in the house You're in quite a pickle :o I'm sure you'll have to enter in to a new mortgage your mum and the other two, she might have to pay stamp duty, the house will definatly need a new survey and about £4/500 in conveyancing fees for the bank to be happy, also the other two people might want legal guarantees that you'll not declare bankruptcy as it could affect the two-thirds of the house that not yours. Link to comment Share on other sites More sharing options...
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