Bankruptcy in Scotland. If only one person is going bankrupt and house in joint names do u still loose house?
If the house and belongings are in the name of both husband and wife but only one of you is going bankrupt, what happens with the house and belongings?
Also can a 3rd party, ie a family member buy out the bankrupt persons half of the house?
Any help appreciated.
http://diylegalinfo.com/bankruptcy_Links.html has a lot of information on bankruptcy questions, how to handle them yourself and other information.
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Not sure about Scottish law, but I suspect it is fairly similar to English law.
Once bankruptcy is declared control of the property belonging the bankrupt person is transferred to a trustee in bankruptcy. They can take decisions to sell etc in order to raise as much as possible to settle the debts. If property is jointly owned the other owners are entitled to their share. However, the trustee will try to force through a sale and can go to court for an order for sale. Even if there are children in the house there is unlikely to be more than a year’s delay.
There is no reason why you cannot arrange the sale privately, but the trustee has to agree and the price has to be the full market price.
If property is sold before bankruptcy to try to protect the assets the transaction could be voided. This means the house could be taken back from the 3rd party so they would lose their money and the house. Of course this would not happen if the sale was for a fair price and the money was available to the trustee in bankruptcy.
References :
January 17th, 2010 at 7:06 pm
http://diylegalinfo.com/bankruptcy_Links.html has a lot of information on bankruptcy questions, how to handle them yourself and other information.
References :
http://diylegalinfo.com/bankruptcy_Links.html
January 17th, 2010 at 7:38 pm