# Some specific questions on going bankrupt in the uk



## needtodo (31 Jan 2013)

I have a couple of questions on bankruptcy in the uk:
1. What happens to child benefit while you spend time in the uk (assuming you spend a year away)?
2. How is a pension affected by going bankrupt in the uk?
3. What are the chances of getting a mortgage when you return? Or how long would you have to wait before you could apply for one?
4. Can you be refused bankruptcy? Assuming you have been absolutely honest and are insolvent?
5. Is it advisable to put a proposal to your lender first (which they refuse)?
Many thanks


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## needtodo (3 Feb 2013)

One additional question:
Is it necessary to sell your home before going to the UK?
Having read through all the posts I see conflicting advice - some say hand the keys back to the bank before you go and others say sell the house before you go.
What is the best thing to do and why?
Many thanks


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## Steve Thatcher (19 Mar 2013)

*1. What happens to child benefit while you spend time in the uk (assuming you spend a year away)?*
Draw your child benefit in the UK.

*2. How is a pension affected by going bankrupt in the uk?*
The UK insolvency rules only protect a pension as exempt if it is approved by the UK HMRC. As Irish schemes are not it is arguable that they are not exempt and could be taken at some point. John Fleming's Trustee is taking just such an action against his. I have heard of no other cases. If you are young enough I suspect it will be ignored, but it is a very grey area. I advise just on the safe side to consider moving it

*3. What are the chances of getting a mortgage when you return? Or how long would you have to wait before you could apply for one?*
Your credit rating will be grossly affected for six years. You may also have to declare if you have ever been bankrupt before on an application form 

*4. Can you be refused bankruptcy? Assuming you have been absolutely honest and are insolvent?*
If you have been honest and approved your COMI you will get your order

*5. Is it advisable to put a proposal to your lender first (which they refuse)?*
Try negotiating with your lender, what have you to lose, except more time


Steve Thatcher
[broken link removed]


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## Steve Thatcher (19 Mar 2013)

*Is it necessary to sell your home before going to the UK?*
Having read through all the posts I see conflicting advice - some say hand the keys back to the bank before you go and others say sell the house before you go.
*
What is the best thing to do and why?*

You need only tell your creditors your address in the UK in good time before you apply for the order.

As a matter of course in order to make the Official receiver's job so much easier, and hence his involvement with the debtor, to surrender or sell the property prior to going bankrupt. If you don't, it matters not a jot, as the OR will probably just hand the property back to the lender anyway if there is just negative equity.

Whatever way you do it, as a bankrupt your liability under the mortgage falls away, it is just cleaner in my opinion, to clear yourself of any property you have. Also of course it strengthens your case that your COMI is elsewhere, as you no longer have property under your control

Steve Thatcher
[broken link removed]


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## Gerry Canning (19 Mar 2013)

The Uk is one year but it,s not as simple as it seems . Suggest you take advice from Company that knows Uk & Ire. I suggest phone Frost Solutions, 0749364000 as I know they have cross-border ACTUAL knowledge.


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