Query About Family Member Going Bankrupt

[kop]

I purchased the house I currently live in from my mum 10-11 years ago.

 

I didn't pay full market value but over the next 5 years gave her more money, so I probably have paid £140,000 for a house that was worth £250,000.

 

My mum has got into trouble since this and has now been paying the CCCS for some 2-3 years due to her debts.

 

If she was now to go bankrupt would the creditors have any claim on the house? She still lives in the house and pays me rent.

 

Oh and btw, her debts are nothing to do with any old mortgages etc. Her mortgage was paid off when the house was sold to me years ago. All debts are Credit Cards, Bank Accounts and Catalogues. (i.e. unsecured!!)

 

Thanks for your help in advance.

Edited March 21, 2010 by kop

[debtinfo]

are the deeds solely in your name

[kop]

Yes everything is in my name. Nothing is in her name.

[sillygirl1]

Then there is no claim as she doesn't have legal title to the ownership, does she live with you as this might indicate a 'beneficial interest'

[sillygirl1]

Sorry posted in a hurry, I think you need to get some more professional advice as she lives with you and that could be a bit more tricky.

[kop]

Is there someone who can give free advice on this?

[palomino]

Since the transfer of ownership of the house occurred such a long time ago there is no suggestion that the transfer was made to avoid repaying debts. Hence there would be no claim on the house by creditors.

 

You should contact your local Citizens Advice Bureau for independent advice. Alternatively some solicitors will give you a free 15 or 30 minutes consultation so you could ask around your local legal firms.

You could also ask the Official Receivers office for your area - about us menu.