Bankruptcy

[Jenny Rennes]

Hello,

I would welcome advice on a delicate matter.

I have bought a place in France and my partner is listed as being with me as a 'couple' so the property deeds cite both of us as owners,

I don't have a problem with this but my partner has had  a few years of lousy business, he has run up a large credit card / bank loan debt and has been advised to declare himself bankrupt.

It seems the sensible thing to do as his business is unlikely to recover and he is therefore unlikely to be able to meet his commitments as far as debt repayment goes.

My question is this    if he declares himself bankrupt will his English creditors be able to get their hands on our shared French property ?

I put about 90% of the money up but I have no proof of this.

There is no question of recrimination or a break up as we are extremely happy but I would like him to be able to rid himself of this problem if possible.

I will seek professional advice when necessary but I would be grateful for any pointers.

Thanks                    Jenny.

[Owens88]

NB I am not a lawyer.

My guess is that 'it depends'. I am sure that the law would recognise the share of the property as part of his assets, as would you or I if he owed us money and was trying to 'get out from under'.

After all, somebody has to lose out !

In practice I think there are grey areas depending on practicalities (how much is owed) and compassion (partner's/kids' home etc.).

Do take proper advice.

John

 

[Teamedup]

I think that you should get some proof as to what you put in to this property and get your boyfriend to sign stating that that was the case. You need legal advice about the bankruptcy thing.

 You could have had the property signed up as you owning the 90% you put in, was there any reason why you didn't do it like that? Not that I want you to tell me, I just find it hard to work out why someone wouldn't want to protect their own interests.

[Ron Avery]

You need to go and see a professional with this as all cases are different. Perhaps the person who advised bankruptcy would be a useful starting point.

If your OH has declared the French property as an asset, then it will be considered by the court when considering whether to grant an order or not, its not automatic.

 A fact is that your OH cannot sign over the house to you now (unless your name is Hamilton of course)  but you could try and show where the funds came.  As you do not say that you are married, you could claim it was a commercial arrangement, but ONLY if that was the case.  There are time frames within which any transfers of assets are looked at by the courts and not to declare such transfers is a criminal offence. 

 

[Logan]

If he declares himself bankrupt the first step the court will demand is an asset list. He will have to list the French property and the value of his share. Failure to do so is a criminal offence. The court can if it thinks fit issue a seizure order on the property through the French courts.

However, the court will take into account the size of the total debt and all the circumstances in which it arose. ie: recklessness, any dishonesty etc. If the court suspect your OH shifted assets abroad to escape his creditors they will be more inclined to act. Having said that the legal costs involved will be considerable and the court and creditors may take the view that it's not worth the candle. Especially if the debts were just bad business luck. I would say it is crucial you prove that it was your money which purchased the French property. That's the first thing a lawyer will ask you to do. You should be able to do it from your own bank records, money transfers etc. and from the Notaries records.

If the debts are not substantial and unsecured and at a level of bad debt acceptance which most lenders have the Bank may just write it off after giving you some hassle. Your OH should come clean with his creditors and put his hands up. It may help him in the long run.

[Lori]

I'm certainly not a lawyer, but can't Jenny's OH sell his portion of the property to her and use the funds to pay towards his bankruptcy debt?  Not the greatest situation, but, if possible, it would help Jenny protect her assets.

 

?

[Patf]

Sorry to throw another spanner in the works, but do either of you have any chidren? If so, more complicated when it comes to Lori's suggestion.Pat.

[Ron Avery]

[quote]I'm certainly not a lawyer, but can't Jenny's OH sell his portion of the property to her and use the funds to pay towards his bankruptcy debt? Not the greatest situation, but, if possible, it would h...[/quote]

If her O/H puts the funds from the purchase towards paying his creditors that would be fine, if not it could be considered a little on the criminal side. 

[Nick Trollope]

[quote]If her O/H puts the funds from the purchase towards paying his creditors that would be fine, if not it could be considered a little on the criminal side.[/quote]

Not so sure;

a) If he is bankrupt, then spending assets would be considered criminal. If he has not yet been declared bankrupt then "his" money is for him to spend as he chooses. Unsecured debts are just that...

a) Selling part of a house will incurr more taxes.