Selling Property Before Bankruptcy-Will I have time to sell my property before bankruptcy
Selling Property Before Bankruptcy is a risky business. It doesn’t mean you cant. It just means that the way its sold in relation to selling price, and where the funds are distributed upon completion.
The Insolvency laws are tight and its generally an obvious human maneuver which has been proven so many times where the fear off loss makes people put their and their family needs above all else.
The risk for the majority is that they sell a property, transfer the proceeds to a close relative or a friend with what they think is a plausible explanation. Then enter bankruptcy not knowing or realising that The Official Receivers office is entitled to reverse transactions that were made 5 up to years from the date of bankruptcy.
This is one reason that should highlight the importance of trying to make the right decisions at the right time. Because its no good after you have done it.
If you get bankruptcy wrong when you enter it and you have assets or have had assets that you have transferred, then you will look immediately untrustworthy which will make the bankruptcy complicated especially for those that you have entrusted with monies that have been transferred.
This will make life quite complicated and often causes arguments and a divide between the parties.
Selling Property Before BankruptcySomebody is threatening to make me bankrupt – will I have time to sell a property to settle the debt before this happens?
Our first question to you is ‘Have you received a Statutory Demand?’ as this is the step that needs to be taken by a creditor prior to bankruptcy. If not, we would suggest that the threat holds no substance. However, a word of warning – we suggest you get this matter straightened out as if you were to be made bankrupt and you had a portfolio of properties, a Trustee will be appointed and this means two things a) You lose control of your properties and b) very high fees, as in £15,000 +.
Bankruptcy UK offers a full bankruptcy administration service, including dealing with creditors, completing the all important Income and Expenditure, professional completion of the relevant paperwork and bankruptcy help at all levels. Call us on 01425 600129 or 0800 5977 977 for a chat about your circumstances.