I am restricting my answer just to what the creditor could enforce their debts against. Your dispute which has resulted in this debt is not something I can advise upon because it is a very specific problem relating to particular circumstances. You may consider taking advice from another local contentious probate solicitor on the issue of whether debt is properly payable by you or whether you have a claim against the solicitor you refer to as being incompetent.
The basic position is that they cannot enforce the debt against property that you no longer own (ie. the house). However, if they can prove that the property was transferred to your daughters was done so at an undervalue then it gets more complicated. They could apply to make you bankrupt in which case they could, under Insolvency Act, seek to set aside any transactions at an undervalue made in the previous 5 years.
This would put the house transfer outside the scope of that.
s423 of that act also gives the Court a power to set aside but does not set a time limit. It can set it aside transactions which were made with a view to putting assets beyond the reach of creditors even though there were no debts at the time and you were not engaging in activity that was likely to produce debts.
If you are confident that they will not be able to to prove that you transferred the house with a view to putting it outside of the reach of creditors then the house is probably safe. You should write to them and tell them that you do not own the house.
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