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Going bankrupt with house in Southern Ireland

PostPosted:Tue Sep 30, 2014 9:48 pm
by qwerty1980
I have a property in the south of Ireland which is valued at £60000 euro,with a mortgage of 170000 euro. I work in the north and live in a property in the north valued at £130000 and a mortgage of £90000.is there anyway of going bankrupt in the south to get rid of the house as it is putting us in to much debt.the house in the north was taking out on a joint mortgage with my boyfriend who is now my husband.property in the south is in my name only and was taking out before I met my husband.would they come after the house in the north?thanks

Re: Going bankrupt with house in Southern Ireland

PostPosted:Thu Oct 02, 2014 10:06 am
by Hayden
Hi qwerty1980 and welcome to the forum

Because both The Republic of Ireland and the UK are part of the EU there is no easy answer here. If you go bankrupt in the South to overcome your negative equity this will affect your property in the North and vice versa.

If you are considering trying to resolve this with Bankruptcy I would also strongly advice going through the procedure in the North as the rules are far more lenient. For example bankruptcy in the UK lasts for 12 months where as in Ireland it last for far longer.

If you did go Bankrupt in Northern Ireland then only your share of the equity in your property in the North would be at risk (ie £20k) so you would need to consider how to manage this. If I were you I would have a chat to James at Beat My Debt about this situation and your options.

For more information about this process have a read of this information: How do I go Bankrupt in Northern Ireland

Re: Going bankrupt with house in Southern Ireland

PostPosted:Sat Oct 04, 2014 3:59 pm
by qwerty1980
thanks for the reply.we were wondering if it is possible to transfer my wifes equity in the house in the north into my name,wait maybe for a year then go bankrupt,or will they still come after us

Re: Going bankrupt with house in Southern Ireland

PostPosted:Mon Oct 06, 2014 7:39 am
by Melissa S
Hi there qwerty1980

As far as I am aware it would not be a good idea to simply transfer the equity as this would be seen as a transaction at undervalue where no money has been exchanged and the OR may then still be able to void the transfer and take your share. There is also the possibility that your bankruptcy could be extended if you have been seen to purposely hide assets.

If you were able to buy your wifes share of the equity or borrow the money from family then your wife would still need to explain where the money has gone if not to her debts. When you go bankrupt if you were able to raise the money to buy you wifes beneficial share then this would be acceptable to the OR and would protect the house.

I cannot say for sure if the OR would find out about the transfer but they will check the land registry and see that your wifes name is also on the mortgage and want to know what happened to her share.

I am sorry I cannot be of more help. It s possible to raise the money to buy her share ?

Re: Going bankrupt with house in Southern Ireland

PostPosted:Mon Oct 06, 2014 8:22 am
by Hayden
Hi querty1980

It will not be possible to transfer the house in the North into your name a year before your wife goes bankrupt. This would be considered a "transaction at undervalue". Anything your wife does like this 5 years before she goes bankrupt will be looked at by the Official Receiver and overturned I am afraid. They would almost certainly discover this transaction by records at the land registry so it is a no go I am afraid.

As Melissa has said the only real way of doing this would be to buy your wife's share for a fair market price. However the OR would then want to know where the money she received had gone and would ultimately need it to be paid into her Bankruptcy....

Re: Going bankrupt with house in Southern Ireland

PostPosted:Mon Oct 06, 2014 4:39 pm
by qwerty1980
thanks for the replys.ive a valuer coming this week,all being well I should know better were I stand then.i do have savings in my own separate account so I think getting the money should be ok.if she does go down the bankruptcy route should I get the loan beforehand rather than wait.at least il know I have the money rather than wait to bankrucpy and maybe not be fit to get the loan,putting our own house at risk then,if you know what I mean.what timescale does it usally take from sending in the forms till you go to court.thanks again so much

Re: Going bankrupt with house in Southern Ireland

PostPosted:Wed Oct 08, 2014 12:21 pm
by James Falla
Hello qwerty1980

If you are planning to buy your wife's share of the equity in the property so that it is fully in your name thus protecting it if your wife then goes bankrupt you can do this before she goes bankrupt if you wish.

The key thing is that you need to use a solicitor to formalise the transaction (a formal document needs to be drawn up and signed etc) and ensure the title deeds are changed at the land registry. Of course a fair market price needs to be paid (based on an independent valuation - eg from an estate agent) and the required funds need to be physically transferred to your wife.

Then your wife can use some of the funds to pay for the cost of her bankruptcy. (She would need to go bankrupt asap after the transaction to avoid any possibility of her building up new interest in the property). The rest would need to be saved and handed over to the Official Receiver after she goes bankrupt.

Please do not hesitate to contact me if you need more advice about this.

Re: Going bankrupt with house in Southern Ireland

PostPosted:Fri Feb 20, 2015 8:02 pm
by qwerty1980
After speaking with James a few times we decided that the best option was to go for an iva. husband had a rental property in the north and took it out on it. got it passed the other day so a big thanks to James for all his help. still have the property in the south but all is a lot more manageable. we will only be paying into the iva for 5/6 years were as the mortgage had another 23 yrs and serious negative equity. advice to anyone who is serious debt,{or like us felt that paying into a mortgage for the next 25 yrs wasn't going to be worth it} have a meeting with the citizens advice bureau and be honest. before I had never even heard of an iva and if I had, probably would hav went for it a lot sooner. the bankructy was putting me of because I thought the martial home would b at risk. def give james a shout and he will chat u thru your options. if you are reading this I will always be grateful james.thanks :mrgreen: :mrgreen:

Re: Going bankrupt with house in Southern Ireland

PostPosted:Sun Nov 22, 2015 11:08 pm
by sidrivingins
To be honest I'd avoid citizens advice and go straight to James. I went to CA and they really didn't help that much. :x