www.iva.co.uk

I was forced to sell my house that jointly owned with my now ex-wife 3 months ago. My share of the equity was owed to my Mother who lent my wife and I £10,000 on the purchase of our first property (29%). We eventually sold our last property for £181,000, 21% of this would have been £52,490. I was only able to repay my Mother just over £21k towards this. As this debt was secured on our former home, I understand that this takes priority over unsecured credit debts. I am now looking at going bankrupt as I have unsecured debts I cannot pay left over from my marriage. Will the court try to reclaim this money that I paid back to my Mother as I have no other assets with which to try and pay my creditors. My unsecured debts are £70K.

Hi
It is possible that the official receiver will overturn this transaction if they deem it to be improper.
You need to take legal advice on this and speak with an Insolvency practitioner
Regards

Have I read this right? Mother assists with purchase of house 1 and is granted security over it. That house gets sold without repayment. You then buy house 2 without any transfer of security so mother is effectively unsecured?

In that case I agree with Andy. My reading is that there is a serious risk of your mother being asked to repay the money she received as a preference. I would recomend you take legal advice before you pull the trigger.

ian