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AfraidAnna

Advice on transfer of equity please

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This is my first post on the site and I am hoping that someone out there can offer me a bit of advice.

 

I have been married for 4 years and moved into my husband's house, selling mine and putting some equity into my husband's house. We then transferred the house and mortgage into both our names.

Since then my husband, who is self employed, has had very little work. I have no debts at all in my name and do not have a credit card, however, my husband has scary debts, which he has been paying off at a token payment of between £1 and £10. Some of his debtors are now threatening court action for money which we simply do not have. None of the debts are secured against the property.

Having been made redundant 3 times I am now a medical secretary, on a low wage and am afraid that we may lose the equity in our house via a charging order.

 

In order to protect our home we would like to put the property into my name. We have contacted our building society, who are very happy to offer me a mortgage in my name alone. The mortgage has been paid out of my bank account for some time now. I have a solicitor, who will act on my behalf with regards to the transfer of equity.

 

The property transfer documents that have arrived from the solicitor, however, state:

 

'Mr ******** hereby declares that he has never been bankrupt or insolvent or made any arrangement with or assignment for the benefit of his creditors or had a petition in bankruptcy served upon him or a receiving order made against him nor has any judgment ever been entered against him in the Court of Record and he is able to pay all of his debts without the aid of the Property.'

 

Bearing in mind the above paragraph, does anyone have any advice on how to proceed? Would it be wrong for him to sign the transfer documents or as the debts are not secured against the property, whether he can pay his debts without the aid of the property is neither here nor there.

 

Has anyone come across this before whilst transferring property and how did you approach it?

 

I am hoping that someone can help and would be really grateful for any advice.

Edited by AfraidAnna
To correct some of the information

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I've had a search through the site and cannot find a previous answer to your question.

 

However, someone may come along with the answer you seek.

 

Or, perhaps you may wish to contact your solicitor and ask him/her to explain the phrase in "plain English" to see if that will elicit the answer you need....after all, that's why you pay a solicitor.;)


 

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'Mr ******** hereby declares that he has never been bankrupt or insolvent or made any arrangement with or assignment for the benefit of his creditors or had a petition in bankruptcy served upon him or a receiving order made against him nor has any judgment ever been entered against him in the Court of Record and he is able to pay all of his debts without the aid of the Property.'
I think the highlighted text could be a problem in the future. If a creditor does a Land search in the future & discovers that the property has been transferred they might be able to show a court that this was an attempt of debt avoidance.

 

This is only my opinion & I think you really need more specialist advice.


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Thanks for the advice. I was worried about the "able to pay all of his debts" bit too. I'll give the solicitor a call and post the reply up in case it helps anyone else.

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sorry to dampen your spirits but what you are attempting to do will not work. Even if you transfer the house into your name a court has the power to charge against it because you would have do it solely to avoid the creditors. You are not going to pay him his half of the equity and he is still going to live there. So they may charge against his half of the equity which he has given to you to the detriment of his creditors - does that make sense?

 

A far better approach would be to sort out the debts head on, just like many of us on here have/are doing. what types of debt does he have? and has he sent of cca requests to begin the process of seeing if they have the right to be asking for money / threatening things.

 

You are legally several steps away from a charging order so stay calm and begin to deal with the creditors on your terms

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Thanks hungrybear. My husband is in the process of dealing with each of the companies he owes money to and some of them are being very reasonable and are accepting a nominal payment while others are threatening legal action. None of the debts are secured against the house, but I am scared that we will end up homeless! A questionnaire has gone into court for one of the companies pursuing money, but we are now waiting to hear what will happen next.

 

I will update the board when I have spoken to the solicitor......

 

Thanks again - this site helps to keep the panic at bay!

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Thanks hungrybear. My husband is in the process of dealing with each of the companies he owes money to and some of them are being very reasonable and are accepting a nominal payment while others are threatening legal action -usual,is he using a debt management company or doing it himself?. None of the debts are secured against the house, but I am scared that we will end up homeless! Very unlikely, at the worst a court would issue a payment order provided you stick to that them you're OK. A questionnaire has gone into court for one of the companies pursuing money, but we are now waiting to hear what will happen next I do not understand, have they submitted a court claim?.

 

I will update the board when I have spoken to the solicitor......Be careful here your average 'Joe Bloggs' solictor is very good a conveyencing, personal injury etc, very few know much about consumer law. If you take this route then my advise would be go for a local/regional bigger (unfortunately more expensive) sols with a number of partners who specialise in different things

 

Thanks again - this site helps to keep the panic at bay!

 

If you post his the creditors (whether original / sold to a DCA/being handled by a DCA and approx amounts and what they have said recently / what they have done / what paperwork you have got one of us will advise you him on your options.

 

At the very least I would strongly suggest a call to someone like the National Debtline asap.

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Hi hungrybear

 

Thanks for your reply. My husband does have a thread on here and has received some fantastic advice from several caggers. We thought we should keep this thread separate in case anyone from the opposition was reading the thread and managed to match it to a claim - he is at the AQ stage at the moment.

 

Thanks again for your help!

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Hi hungrybear

 

Thanks for your reply. My husband does have a thread on here and has received some fantastic advice from several caggers. We thought we should keep this thread separate in case anyone from the opposition was reading the thread and managed to match it to a claim - he is at the AQ stage at the moment.

 

Thanks again for your help!

no probs. you know where I am. PM me the link to the other thread or any questions if I can help. My specialisms are defending claims on overdrafts and making solicitors look silly in court:-D.

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Cheers hungry - I'll have a word with my other half and get him to pm you.

 

I spoke to the solicitor today and they are looking into the legality of removing the "offending" clause before we sign the transfer papers. I'll let you know how we get on.

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Cheers hungry - I'll have a word with my other half and get him to pm you.

 

I spoke to the solicitor today and they are looking into the legality of removing the "offending" clause before we sign the transfer papers. I'll let you know how we get on.

 

 

even if they can remove the clause - which I believe is related to the Insolvency Act (he is signing to say he isnt selling up and doing a runner whilst technically insolvent) so I think it has to stay - I do not think the transfer would offer the protection you seek, although the case may need to get 'bumped upstairs' to the high court for a ruling.

 

but yes let me know if I can help.. If I cannot I'll say so (not guess or waffle) then point you in the direction of a cagger that can help

 

BTW only PM me the link I dont give advice by PM as this is against cag rules and I always like snoops and 42man and john and donkey and docman and dicky and pinky and rmw and .... about 20 others who know lots of good stuff to add their 2p worth!

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Hi

 

Having explained the situation to the solicitor they have reissued the contracts with the scary clause removed.

 

I'll update with any new information that becomes available.

 

Many thanks again

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