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LR1 transfer of equity question

  • exhasperated
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13 Jun 14 #436658 by exhasperated
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Hiy .
Is it possible for someone to tell me how I can find out what part of the wording means in a land registry transfer of equity In property document (LR1) means in laymans terms please. ?
It reads I DECLARE FOR THE PURPOSE OF THE INSOLVENCY ACT 1986 (AS AMENDED) I AM SOLVENT AT THE PRESENT TIME AND THAT I AM ABLE TO PAY MY DEBTS AS THEY FALL DUE AND THE VALUE OF MY ASSEST EXCEED THE VALUE OF MY LIABILITIES BOTH CONTINGENT AND PROSPECTIVE ''
If I have debts or a claim against me in the court that has not been finalised if I DON''T declare them in this document will I be commiting fraud under section 1 of the fraud act 2006 ? Or would I be saying that even though I am signing my equity in a property over to someone else I still have enough money available to me to cover any debts I may have or get ?
Should I sign it or not !:S

Many thanks just for reading this !
:S:S:S

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13 Jun 14 #436667 by LittleMrMike
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I am not a great expert in insolvency and this ia a divorce forum. But I probably know more about the subject than most posters do. Not, I''m glad to say, through personal experience of the process.

In a word, you''re right, what you are saying is that you have enough to cover your debts and the transaction is not being made with a view to defeating any claims against your assets which may be made by creditors. We get the occasional case where one spouse, usually the husband, is '' up to his ears in debt '' and the problem then is who gets the assets - the divorced spouse or the trustee?

But provided you can make this statement truthfully and honestly, then you should have nothing to worry about.

LMM

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13 Jun 14 #436676 by exhasperated
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Thanks for your help. So if there is an ongoing claim against me but I sign this transfer I will be prosocuted for fraud? And if sso would it be the person receiving the transfer (who is unaware of the debts i have) or the person making a claim against my assets in the court or both !?

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13 Jun 14 #436704 by LittleMrMike
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I had thought my reply was pretty clear.

The issue is not whether you have debts but whether you are solvent.

If you knowingly or recklessly make a fa;se statement you will almost certainly be committing an offence.

LMM

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13 Jun 14 #436724 by exhasperated
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Thank you for your responce

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17 Jun 14 #437079 by LittleMrMike
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I know you sent me a PM but my computer is playing up a little.

An avoidance of disposition order can be made where a person has disposed or intends to dispose of property with the specific intention of defeating a spouse''s claim to financial relief.

It is not the same as a declaration of solvency, which is designed to deal with a situation where a person who is likely to be declared bankrupt disposes of property with the intention of keeping the property out of the hands of the trustee.

If such a declaration was false I would not be surprised if it was an offence under the Insolvency Acts. Nor would I be surprised if the trustee applied to the Court to claw back the transaction.

If the disposition has not yet taken place then it may be possible to protect your interest in property by registering matrimonial home rights or a pending land action, depending on the circumstances. This is relatively cheap, but since I don''t know anything about your case I can''t advise.

I don''t like giving advice when I am not sure of the answer, but in these matters speed is always important. It is much easier to prevent a transaction than to reverse one which has already occurred. If property was sole to an innocent buyer who was unaware of the underlying intention, you are probably too late.

I''m afraid I think this is beyond the average self repper and I wouldn''t attempt it myself without advice.

LMM

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17 Jun 14 #437086 by exhasperated
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Thanks for your reply.
I know from what you said that an act of fraud was committed against me and i need to report it now.
From your previous response
"In a word, you''re right, what you are saying is that you have enough to cover your debts and the transaction is not being made with a view to defeating any claims against your assets which may be made by creditors."
this was obviously not the case when he transferred the property to me, but i was the innocent party in the transfer.Who would i report this fraud to ?

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