Bankruptcy

[Priesty]

If a joint mortgage was transferred into sole name of the wife, and then the husband subsequently became bankrupt, would they still be able to come after the property? If so, is there a time limit.

[Fay Mousse]

It's not the mortgage you would need to change - it's the name on the title deeds, for which you need the mortgage company's permission. The mortgage is just a debt, after all.

If the wife doesn't have enough income to support the mortgage on her own, then the mortgage company will refuse.

In any case, it is highly illegal and the time limit is 5 years:

357. Fraudulent disposal of property

(1) The bankrupt is guilty of an offence if he makes or causes to be made. or has in the period of 5 years ending with the commencement of the bankruptcy made or caused to be made, any gift or transfer of, or any charge on, his property.

Section 352 applies to this offence.

http://www.insolvencyhelpline.co.uk/insolvency -act/p09c6.htm

[Priesty]

Basically he wants to remortgage to pay off loads of debt, but still fears bankruptcy. Its blatant avoidance, and i've told him to forget the idea, but wanted something to back me up.

[Fay Mousse]

Well now you give him the cold hard facts.

[Priesty]

Cheers, you've been most helpful