How would the creditors react?

[jayjay]

I live with my partner and have been the main breadwinner. She has a very large debt. The house is her name only and there is collateral in the house, part of which we have already used to settle some of the debts. Can I buy the house from her,in my name only and then she pursue an IVA. How would the creditors react?

[carlmcmullen]

Hi,

Creditors are likely to reject a proposal on these grounds.

How much equity is in the property.... does it exceed the amount of debt owed?

By purchasing the house from her you are possibly de-frauding creditors which can be seen as a very serious offence and you are unlikely to have an Insolvency Practitioner who will take on your case if this happened. And with any Insolvency practice it is there job to investigate these kinds of transactions.

An IVA may still be available to her, as although she owns the property, you could still be entitled to half of the equity and this would be reflected in her IVA proposal.

Have she considered re-mortgage as this may be a more sensible solution to her?

Before you carry out this transaction you need to seek advice as you could potentially be stopping her from an IVA should this be the best solution for her.

Hope this helps

Carl

[Jo Rolland]

You would not be automatically entitled to half of the equity, this depends on many different factors, for example how long you have been together, if you have made regular contributions to the property, etc.

You can buy the house from her, but thiss would have to be for the full market value if you were not entitled to a share of the property. If the house were transferred to you and you were not legally entitled to a share of the equity, this would be seen as a transfer of assets which would not be acceptable.

Jo Rolland
Debt Alternatives
www.debtalternatives.co.uk