Topic: deed of trust

[keady]

I really need some advice.I am on the verge of considering bankruptcy,my only concern is that myself my brother and sister are named on a deed of trust on our parents home.Both of my parents live in the house, which is to come to the three of us when they pass away.If i declare myself bankrupt what implications does the deed of trust have.I cannot put my parents home at jeopardy but i am desperate for a way out debt.
Many thanks

[Sovereign]

Hi Keady. Are you in the UK?

[keady]

Hello
yes I am in the U.K.
Thanks

[adria82]

Hey there,

You share of property would be taken off by the court if you declare bankruptcy.

[Sovereign]

Hi Keady,


Ignore that post by Adria. That may well be the case but more information is needed. Is the trust created by a will of a deceased person who has granted a life tenancy to your parents or do the three of you own the house a tenants in common and you all allow your parents to live there?


Alternatively, are you saying that the three of you will be left the house in your parents will?


Please clarify.


Steve

[keady]

Hello Steve,
Thanks for replying.The property is an ex council house that was bought for £15000.My brother sister and myself put up the money, but I assume the house is in my parents name as they were the council tenants.As I said, the property is to come to us when they pass away, although I'm not exactly sure of the wording of the Deed of Trust.I could try to get some more information if you need it,but I didn't want to unduly worry my elderly parents by asking for a look at the Deed at the moment if I don't need to.Apologies for being so vague.
Thanks again for your time and advice.

[Sovereign]

Thanks Keady, now I have a much better understanding of your position. You have a positive interest in that property and should you declare yourself BR then the receiver will place a restriction on the property and may force a sale in time. He will first of all give your brother and sister or indeed your parents the opportunity to buy out your interest in the property.


How much debt (unsecured) do you have. There are other options open to you other than BR.


Steve

[keady]

Thanks again Steve,none of my family could afford to buy my share for its market value (about £20 - 25,000).If i sold my share to my brother for my original investment £5000 and paid off one of my cards this could possibly delay for now the need for me to go bankrupt.Would this  be an option and would this be considered o.k. if I did still end up having to go bankrupt in say a year or twos time?
Thanks again for your time.

[Sovereign]

Hi Keady,


Here is where it gets very difficult for you in BR. The Official Receiver will ask whether you have an interest in a property. The answer is unequivocally 'yes'. He will also ask if you have transferred or sold a property in the last FIVE years. If you have, he will want full details and should the transaction be considered undervalue, as it would be if you sold your share to your brother for £5k, then he will overeturn that transaction.


BR is not an option for you because of your interest in that property. You will lose it.


You should look at a simple Debt Management Plan.


Steve

[keady]

Thanks again Steve for your time and advice.It has all been very helpful and informative.Having read all of your advice I think I am going to have to try and dig myself out of the hole I've gotten myself into.I really do appreciate all your help.
Many Thanks once again.

[Sovereign]

No problem Keady. All the best