Can I go bankrupt in UK if I don't have a job in UK?

Hi everybody, an interesting thread, for what it's worth here is my two penneth

* If I move to the UK-what do I do then? If I cant get a job am I entitled to welfare?

Yes you would be entitled to welfare, but perhaps not straight away. I have clients who are on wlefare, and they have no problem going bankrupt. By far the majority get some work, any work, as it roots you to the UK. For COMI purposes there is nothing better than a wage slip and money going into a bank account.
It perhaps used to be the case that some people went bankrupt and weren't actually in the UK. That in my experience is never the case now

* If I am unemployed how can I show the UK as my centre of main interest?

You would have support from friends and family resulting in money being lodged in a UK (Barclays) bank account, which you used a laser card on everyday.

* I have been advised to sell all my properties (fire sale) prior to going to The UK to bring the losses to a head- will the bank consent to this? Can I sell them without their consent or knowledge?

This is what some recommend but is not necessary. It can help the OR, as he then only has an unsecured liability to deal with. If you start this when you first move to the UK, it will be done by the time you are ready to petition. My view is that firms who encourage this are simply out for a conveyancing fee. My firm advice is that all property is returned to the bank prior to the bankruptcy, usually in conjunction with advising the bank where you are now living.

* I can borrow approx €20k from parents to get myself established in the UK but how will a bankruptcy court view that in 3-6 months time- that I used this money to live on rather giving it to the banks here?

The OR or court will not give a fig

* How will our family home be treated when I try to go bankrupt?

It will vest in the OR. Again it depends on who owns it, who is on the mortgage, and who is going bankrupt. Generally if both own and go bankrupt, it vests in the OR and if it is in negative equity he will disclaim it or simply hand it back to the bank. You will not be liable to repay any shortfall it will be written off in the bankruptcy

If you have an occupational pension it is safe.
If you have a private pension, it cannot be guaranteed to be exempt property or safe. Under UK law the only pension which is safe is one registered with HMRC, hence why I provide the option to move it

Get a job which only pays what you need to reasonably live on. for a single person this could be as little as £1300 gross per month. if there is a family involved it can be considerably higher.
I do 'typical' expenditure sheets for my clients so they know in advance what to earn

I hope this clarifies matters

Steve Thatcher
www.helpwithdebtuk.com
 
My firm advice is that all property is returned to the bank prior to the bankruptcy, usually in conjunction with advising the bank where you are now living.


* How will our family home be treated when I try to go bankrupt?

It will vest in the OR. Again it depends on who owns it, who is on the mortgage, and who is going bankrupt. Generally if both own and go bankrupt, it vests in the OR and if it is in negative equity he will disclaim it or simply hand it back to the bank. You will not be liable to repay any shortfall it will be written off in the bankruptcy

A couple of questions if you don't mind Steve. In this particular case Broke cannot sell the properties as they are mortgaged so when he writes the letter to the bank telling them he is in the UK he literally hands the keys back by telling the bank they can have the properties as he is going bankrupt.

For Broke's case his wife is going to stay in the family home, she becomes liable for the full mortgages (jointly and severally liable) and how does it work then. What's the difference between the OR disclaiming it or handing it back?

Does the fact he is leaving a wife and children in Ireland matter to the OR? Could it go against him.
 
Hi Steve - thank you for your extensive information. If I do decide to take the plunge I will certainly be using your services as the information you have provided is very clear and is explained very simply ( a sure sign that someone knows what they are talking about!!).

I have just a few more questions:

1. My home is in negative equity by between €75k-50k and is a joint mortgage with my wife (who won't be going bankrupt). I have been told that my wife can take over the property from OR for a nominal sum as it does not have any equity which can be used to pay creditors- is this true?

2. If I moved to The UK & secured employment can I legitimately send home some money to help my wife look after our kids- will this be allowed as "living expenses" when I come to applying for bankruptcy? Or must I appear to sever all ties with my family & Ireland?

3. I have been offered voluntary surrender of some of my properties by the lender- but they want me to sign to accept full judgement for the full amount of the loan- should I do this? I lose control of the sale & potentially end up with a larger judgement than is necessary? Does this matter when I will most likely go bankrupt anyway?

4. There is a chance that I will offered a position in the UK this week with a salary of €25k- is this too much? Can I claim my own living expenses & a portion towards my kids in Ireland or just my own living exps in UK.

5. Where are u based in The UK- I should really take a trip to see u I think?

I am really sorry for all the queries but I never thought I would be in this situation and now that I am nearing my final decision it is all the "small" hings which matter.
 
I hear you Bronte- once I have "bitten the bullet" and made a final decision I think I need to make an appointment with this man. At least one of us needs to know what we are at!!!
 
Hi Steve - thank you for your extensive information. If I do decide to take the plunge I will certainly be using your services as the information you have provided is very clear and is explained very simply ( a sure sign that someone knows what they are talking about!!).

I have just a few more questions:

1. My home is in negative equity by between €75k-50k and is a joint mortgage with my wife (who won't be going bankrupt). I have been told that my wife can take over the property from OR for a nominal sum as it does not have any equity which can be used to pay creditors- is this true?

Yes as she is joint and severally liable she would continue to owe the mortgage anyway. She would be able to buy your interest from the OR

2. If I moved to The UK & secured employment can I legitimately send home some money to help my wife look after our kids- will this be allowed as "living expenses" when I come to applying for bankruptcy? Or must I appear to sever all ties with my family & Ireland?

No, you can only provide for the family that live with you. My gentlemen often 'separate' from their wives

3. I have been offered voluntary surrender of some of my properties by the lender- but they want me to sign to accept full judgement for the full amount of the loan- should I do this? I lose control of the sale & potentially end up with a larger judgement than is necessary? Does this matter when I will most likely go bankrupt anyway?

It doesn't matter. whatever way you decide to go, the amount will be written off

4. There is a chance that I will offered a position in the UK this week with a salary of €25k- is this too much? Can I claim my own living expenses & a portion towards my kids in Ireland or just my own living exps in UK.

For a single man living alone it may be too much depending on whether you run a car you need for work, fund a pension and where you live. I have sheets which help explain this

5. Where are u based in The UK- I should really take a trip to see u I think?

I am based in leicester. I am always in Dublin, London or Manchester/Liverpool

I am really sorry for all the queries but I never thought I would be in this situation and now that I am nearing my final decision it is all the "small" hings which matter.

Ahh, all the small questions is what makes my advice so valuable and why I have to charge for my consultations. The need to make a living sometimes trumps the desire to give free advice all the time.

Here you have plenty of info to help you make a proper informed decision

Steve Thatcher
www.helpwithdebtuk.com
 
Thanks Steve- I have sent you a private mail & look forward to setting up a consultation at your earliest convenience.
 
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