Unilateral notice - advice

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My girlfriend was forced to declare bankrupcy in December 2001 and the final payment in the agreement is due to be made this month.

Prior to her being declared bankrupt we had a joint mortgage on a property, which,was transferred to me in June of 2000, after which point we split up.

At the time of transfer the equity in the property over the outstanding mortgague was negligible and as she wanted out was happy for the transfer to take place. All this was covered in the original bankrupcy proceedings.

I subsequently sold the property in 2002 and moved on, but this week I have recieved a notice from solicitors acting on behalf of the creditors stating that as her equitable share was transferred for no consideration,that they would be applying for a Unilateral Notice to be applied to my new property. The sum they are looking to reclaim is 30,000, based on their estimation of her share of the equity at the time of transfer.

My question is what is their legal entitlement? I've looked through HBOS etc and the land registry for info on prices in 2000, and they seem to be basing their totals on land registry information on an identical propery in the same block in which I owned, but based on a sale in 2001.

As far as I can best estimate the value in 2000 would only give a maximum value for them to chase of 10,000.

Thet've asked me to make an offer as to payment - so any advice on how I stand would be much appreciated.

-- Steve Hughes (steve.hughes@bbc.co.uk), January 27, 2005


This is a bit complicated because it involves bankruptcy law. It looks like they are basing their claim on your girlfriend's alleged beneficial interest in the property.

You need to speak to a specialist on this. See a solicitor before you reply to them.

-- David J. Button (davidjohnbutton@supanet.com), January 28, 2005.

Hi I am guessing from my experience that when you sold the property, in the eyes of the Insolvency Dept., you had actually released your girlfriends share of cash in the house. I'm sure you're aware by now that in law your girlfriend would have had an entitlement to up to 50% of the beneficial interest of the home but that interest can be added to the sum. This link may help but it needs to be read carefully!! Good luck http://www.insolvency.gov.uk/guidanceleaflets/happhome.htm

-- Rob Jones (rob@icon-it.net), January 31, 2005.

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