Advice on selling property to family before Insolvency of business?? Is it Legal?

My dad has had his own business for about 25 years now and has worked really hard at it, however because of the recession he has found it really hard because the industry he is in are just getting no work at all.


He has just made us aware that he is in big trouble financially and if his business goes under my mum and Dad could lose the house.


He has a really bad heat and this worry is doing him no good it is through no fault of his own that he is here and it just doesn't seem fair.





My parents only owe about 拢5000 on the mortgage (because they had an endowment short fall) and my sisters and I could club together to pay that off, if they then own the house 100% are they legally allowed to sell it to my sisters and me for a nominal fee or small amount to avoid it being taken if the business goes bankrupt? or is this classed as improper conduct? Any advice at all would help loads.





Please no-one mess about with answers as this is really serious.Advice on selling property to family before Insolvency of business?? Is it Legal?
I'm really sorry to hear about your Dad's problems. The law is very complicated about buyting and selling property, as not only could it been seen as avoiding debt it could also look like avoiding inheritance tax.





There are ways of protecting your dad but the first thing to do is raise the 拢5000 and pay off the mortgage. This makes life simpler but not easier. Then get your Dad to go to the Citizens Advice Bureau. They are really good with debt problems and will put him in touch with some heavtweight help. They helped me a lot and saved me thousands.





If you cant raise the 5 grand GOTO THE CAB NOW. It is free and good. Banks and creditors respect them and are more willing to help those taking their advice. Tell him to do it now...tomorrow may be too late. Do it now. He will feel better, be in control and have serious help behind him.Advice on selling property to family before Insolvency of business?? Is it Legal?
There are a bunch of questions here. Did he pledge the house as security for the business? Is the business a sole proprietorship or a limited company? Is the house in both your parent's names? Is the company in both your parent's names?





If a limited company goes under, only the assets of the company are affected, not the personal assets of the owners, unless those assets are pledged as security for a company debt.





If the house is at risk, and is sold for a nominal amount, within the 12 month period preceeding a bankruptcy, the bankruptcy trustee and company creditors may have grounds to go after it, or charge the owner with malfeasance.





See a good lawyer. There are a lot of shades of grey here.
They can sell it to you, however it will be still subject to repossession or can be taken from you by the courts in the case of your father's buncruptcy.





You have to have taken ownership of the property for at least 7 years for it to be safe, unless you buy it for full and proper market value. If it is passed to you for nothing or a nominal amount, then the 7 year rule will apply
I believe that getting rid of your assets ie; house/car if you know you are going to be insolvent is illegal in the UK. Before anyone does anything take legal advice.