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tdlawyer
tdlawyer, Lawyer
Category: Bankruptcy Law
Satisfied Customers: 1096
Experience:  Lawyer with 11 years experience in bankruptcy related issues.
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Hi, I could be potentially made bankrupt by the HMRC. The question

Resolved Question:

Hi, I could be potentially made bankrupt by the HMRC. The question I have is my situation is a little complicated, back in 1997 my parents bought there ex council property, with the help of a mortgage advisor. At the time he advised an endowment mortgage product, but convinced them it would be better to put the endowment in my name which is due to mature in 2017. My parents have made all of the payments since the start of the mortgage on the endowment so as such it has always been there endowment, but I was wondering how this would be viewed if I was made bankrupt?
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Hello, welcome to the website. My name isXXXXX can assist you with this.

tdlawyer :

Your trustee in bankruptcy (when apointed, if you're made bankrupt) will ask you to explain the background concerning this and why you would say that it's your parents endowment and not yours.

Customer:

thank you tony

Customer:

how would you suggest i approach this to make sure that there house is protected

tdlawyer :

You would say that it's you holding the policy on trust for your parents and that whilst it's in your name legally, it doesn't belong to you.

Customer:

what evidence would i need to supply to confirm this?

tdlawyer :

This is common actually, so as long as the payments were made by them, and you say this was the agreement you had at the outset when you set up the arrangment then you should be fine. I expect the trustee will have to accept that it's not yours and belongs to your parents.

tdlawyer :

You would need your own statement - which will be just what you say to him, and then details from your parents showing the payments being made from their account.

Customer:

the property is in the mortgage of my parents

tdlawyer :

That's helpful.

Customer:

as is details at the land registry

Customer:

looking back it seemed like a good idea but now this situation is a little different

tdlawyer :

Yes, good, that's very helpful. It all makes sense with all the extra bits in the backgroun stacking up as you would expect if your version of events were true.

tdlawyer :

Things always look different with hindsight ...

tdlawyer :

But I don't think you have anything to worry about.

Customer:

so what exactly will the trustee look at in relation to my bankruptcy?

Customer:

what sort of checks does he carry out, just want to make sure there is nothing i have overlooked and if possible make the process as pain free as possible]

tdlawyer :

He's looking to see what he can sell that you own to make money from to pay creditors.

tdlawyer :

If the policy isn't yours (except in title) then he cannot have it.

tdlawyer :

They don't carry out standard checks, they look at what you tell them, and then consider what you say. Each trustee is different as they're in private practice (at their own firms) and not like a central state department type thing.

Customer:

i'm currently unemployed, would it make more sense to stay unemployed or if I find employment will he take most of my salary

tdlawyer :

He will take from your salary what you dont need to live on.

Customer:

how long does he do that for?

tdlawyer :

But he will only do this for a year.

tdlawyer :

:)

tdlawyer :

So it depends on how good the job offer is I guess!

Customer:

so if I find employment mid way through the year he will only take for whatever is left of the 12 months

Customer:

well I could suffer for a year, I thought it would be for longer say up to 6 years

Customer:

what about holidays already booked and paid for, would he look to get these refunded

tdlawyer :

No, he wouldnt cancel holidays.

Customer:

so I'm guessing he would look for any funds which are in bank accounts to claim and close accounts

tdlawyer :

Yes, thats right. Cash in bank etc. is an easy target for him.

Customer:

so not much point trying to save for a rainy day in the meantime!

tdlawyer :

Nope ... sadly not!

Customer:

sorry for all the questions, this is all new to me and information is not easy to find!

tdlawyer :

In the old days though ... it used to be worse, 3 years for bankruptcy to end.

tdlawyer :

Dont worry! You're welcome!

Customer:

do you have to have a face to meeting with the trustee

tdlawyer :

Depends .... he doens't have to meet you, but he can choose to if he wants to.

Customer:

I'm guessing its if something is complex in the bankruptcy he may want to ask questions

Customer:

so what will he want to see in relation to my finances

tdlawyer :

Yes, exactly!

Customer:

will he accept a letter for benefits as proof of income

tdlawyer :

Yes, he would.

Customer:

thank you so much for your help, it puts my mind at rest that he wouldn't claim my parents endowment especially as it is in my name and there is a shortfall already that they are struggling to find

tdlawyer :

No problem. Glad I could help out!

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