could we lose home

K

kenny shaw

Guest
Myself and my wife are about to build a new home.My wife was given the site from her father and i am selling my house which i bought on my own. so 50% of the deposit for the build is coming from me alone .she has a business loan from 1 of the banks for about €90k and her business is just about getting bye.If her business failed and she had to go into bankruptcy could we lose the new home.my name cant go on the title deeds for 3 years otherwise myself and her father would have to pay capital accquisition tax although My name would be on the mortgage.We have one little boy and we are a bit concerned.I dont think sean fitzpatrick is going to lose his family home from the reports i am reading.can someone please advise
 
Bankruptcy is a very expensive business and one creditor is unlikely to go down that road for €90,000. Elective bankruptcy by your wife is a whole other ball game and she would be mad to do that (IMO) for debts of €90,000. More than likely if the business fails they will chase and chase her for the money whatever way they can for years to come through the Circuit Court with installment orders and the like and you will either end up paying some of all of it back eventually.
 
Your wife has a business loan. Did she give a personal guarantee on it? Is she a sole trader without limited liability?
 
as far as i am aware the was no personal guarantee and she is a sole trader.she had no assets at the time of accepting the loan. would the bank have any claim on our new house. I am hoping to buy her name off new build within 3 years if feasible
 
If she is a sole trader then my understanding is that she can be sued as an individual for the debts of her business. Having said that, a judge would not throw someone out of the family home to pay a business debt but a creditor who secures judgement could put a charge on a property which would have to be discharged if you tried to sell it within 12 years and this would also severely impact on your wife's credit rating. I'm not sure whether a judge would allow a charge to be registered against a family home though.
 
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