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The Bankruptcy Service Case Study Example: Selling Property Prior To A Bankruptcy

The following bankruptcy case study is a fictitious example, designed to help you understand working situations where bankruptcy is and isn't appropriate.

A look at what happens to a property recently sold on to a family member.

If I own a house before going bankrupt but sell it to my sister can the official receiver or bankruptcy trustee still go after it?

No, they cannot, as long as you sold it at market value, as otherwise it could be construed as being deliberately selling an asset at undervalue. Details would have to be supplied about the transaction as any profits will be distributed to creditors. If it was deemed to have been sold for under market value, the insolvency service would probably try and recoup the difference from your sister.

For further details, see our page on bankruptcy and your home.

Free debt counselling and advice is also available from the Money Advice Service available at: doesn't charge a fee for its bankruptcy service, but receives remuneration from the partners that we work with in order to keep operating. Those partners must charge a fee to the customer to likewise cover operational costs, and this amount will vary depending on the solution offered, and the terms of the parner. For details of these terms, please refer to the website of the organisation dealing with your bankruptcy. Upon application with, we will forward your information on to one of our specialist debt partners. You will then be contacted, and you will be able to explain your case, and expert advice will be offered in order to ascertain the most appropriate debt solution.