They’re Taking My Home!

Hi Scott,

My partner has informed me he has a tax debt of $260k and that it has been placed in the hands of the debt collectors. He also has $30k in credit card debt. My car is in both our names and we have a mortgage of $200k. My partner has decided his only option is to go bankrupt and wants to transfer the house into my name only. He has been communicating with a ‘debt specialist’, which sounds to me as dodgy as the mess he is in. Is bankruptcy the only option?

Nicole

Hi Nicole,

Your partner is getting bad advice.Transferring the house into your name won’t work. The Bankruptcy Act has clawback provisions that last up to five years for any asset that is transferred or sold for less than it’s worth, prior to going bankrupt.

In your case, once your partner goes bankrupt the trustee will become the owner of his share of the house. Depending on how things go, they will probably push for you to sell your home.

Now, I don’t know what a ‘debt specialist’ is, but it sounds like he’s got the financial equivalent of a reiki healer trying to help him with his financial heart attack. Don’t make his mistake: call Financial Counselling Australia on 1800 007 007 and get a meeting with them, pronto.

Scott