How To File For Bankruptcy If You Live Abroad
For most when moving abroad, the last thing people want to think about are their debts they have left behind back in the UK. One of the most common misconceptions for ex pats is; when you leave the UK, the debt you have accrued gets wiped off when you leave – they don’t unfortunately! The money you owe to creditors will still have to be repaid and if that is unrealistic then one of the debt solutions you could consider is bankruptcy from abroad. It may be that your new salary is not as much as you thought it might be or perhaps your day to day expenditure is much higher than you had anticipated. The fact is that ignoring your UK debt is not a good idea and your creditors will eventually catch up with you. The sooner you act to resolve any problem debt you have will help to ensure your new credit file isn’t adversely affected in the long term by any UK bad debts.
Will My Credit Rating Be Affected in the Country I Now Live In?
As soon as you declare bankruptcy in the UK a record of this will be added to your UK credit file, this remains there for 6 years.
The fact is, if you have little or no assets in the UK when you left or have no assets in your new country of residence (and) you have substantial outstanding UK debts then you could consider bankruptcy. For the most there will be little or no impact to bank accounts, credit file and lifestyle, this is because there is very little cross boarder communication between credit reference agencies. If you now live overseas and own a property which has equity within it then a bankruptcy order may not be the best course of action. Dissolve Debt provide an in-house debt management service where we will oversee your personal debts and make a pro-rata payment to your creditors each and every month which is based on your disposable income or what you can afford each month. Don’t assume that any assets which are based overseas are immune from the Official Receiver – they are not!
Am I Still Allowed To Go Bankrupt if I Live Abroad?
Yes, you can still go bankrupt if you live overseas; however this is will depend on which country you now live in and a host of other factors principally relating to your current “centre of main interests” or “COMI”.
The centre of main interests should normally correspond to where you conduct the administration of your interests on a regular basis and as seen by third parties.
There are however a number of factors involved including whether or not the country is outside of the EU, where you are domiciled, where your immediate or close family live, where you work and where your bank accounts are held. If you currently have a work visa or are looking to apply for a work visa, insolvency may also have an impact upon this depending on which country you are based.
This area however can be a legal minefield and we would strongly recommend that you make contact with us to discuss your particular situation as soon as possible.
How Much Will It Cost Me To Go Bankrupt?
The current fee as of April 2015 is £705 per person to go bankrupt, there or no special discounts for joint bankruptcies.
Dissolve Debt highly recommends that If you are considering Bankruptcy to seek advice and guidance. Everybody’s situation is different and we are here to help whether you are in the UK or Overseas.