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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: www.moneyadviceservice.org.uk

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