# Irish national resident in UK with €400k residual debt from Ireland



## Adecco (15 Dec 2016)

I'm  an Irish national but a U.K. Resident in London for the last 6 years. I'm single with no dependents - basically broke - unemployed and renting. with no assets.

I had some buy to let properties in Ireland which bank forced me to sell in 2016. This left a residual debt of c. €400k with interest now rising at c. €1,000 a week.
I tried to come to an informal arrangement with my bank but they were looking for way too much. (You can believe me on that point). As this repayment schedule would have failed I had no choice but to reject their agreement.
I have since received a letter a few months ago asking for full repayment of the outstanding amount in 21 days. Obviously this was not possible.
*I'm assuming this is some legal step before lodging a judgement against me in the courts? Can I assume this has happened by now?*

I was also involved in a tax scheme here in the U.K. which has since been deemed as tax avoidance (NOT tax evasion). The upshot of this is a debt of c. £40k to HMRC which will be called in in 2019.

Also I am currently unemployed and have been for the last 9 months - however I do have enough to keep me going for another 6 months.

*What are my options? *
Firstly - I have been an IT contractor for the last number of years so have earned a reasonable daily rate when employed.
I could attempt a one-off lump sum IVA / bankruptcy as I'm now unemployed - but of course this will destroy my credit rating in the UK. This would otherwise be the perfect solution.

However - and I have thoroughly researched this - but it looks like getting a job with a bad credit rating through bankruptcy/IVA is nigh on impossible. (All my experience is in the financial services sector in IT - meaning this would always be the most likely place to get a job). This will have a MASSIVE impact on my job prospects. I cant even get a job in the last 9 months with a perfect credit rating. 

My main question is - will the Irish bank debt effectively go away? I know it will not legally go away for a few years - but will they attempt to pursue me in any way?
I know they haven't lodged a judgement in the UK as I checked my credit file - so its possible they may not bother at this stage.
They are also aware I don't have anything worth pursuing right now.

Essentially - one strategy is go bankrupt/IVA in UK - but then i cant get a job.

Alternatively - ignore the Irish bank. Pay back HMRC in 2019 (assuming i do eventually get a reasonable paying job like i had) - and just hope the Irish bank don't come after me. I think it goes away after 6 years? That way my credit rating is protected in the UK at least.

Basically - i feel that if my credit rating is ruined in both countries then getting a job in either country is very difficult. (Plus my preference is to stay in UK anyway). So i'm really prioritizing my current good credit rating in the UK right now.

What do I do? Become insolvent with the big risk of being unemployable? Or ignore debt while maintaining good job prospects?

Or could i go back to Ireland and become insolvent there? As HMRC would be listed as one of my creditors would my credit rating in UK be impacted if I went insolvent in Ireland?

I really don't know what to do and am hoping someone may have an outside the box idea. For now i think prioritizing job prospects at all costs - even if that means taking the gamble the bank will go away after the 6 year statute barred period.


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## Bronte (15 Dec 2016)

So far we have not had a poster in the UK who was chased.  But your debt is substantial. It does seem they are certainly gearing up to do something.  But it might be just a procedure in the hope of getting something from you, without going full out legal against you.

Logically I don't see the point of the pursuing you.

It seems you have some money.  It would be absolutely silly not to pay a professional to see what you can do.

Maybe it's possible for you to pay HMRC now.  Then return to Ireland and go bankrupt here, without it impacting you in the UK, then you return there when your bankruptcy is up.  Or return when you are allowed to do so.


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## thedaddyman (15 Dec 2016)

I'm not sure why you say if you are declared bankrupt you won't get a job. You may be restricted from certain industries (eg financial services) but I can't see how it would stop you working.


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## Gerry Canning (15 Dec 2016)

Adecco. You obviously have sellable skills .

1. Get advice on how to sort HMRC, I think they will come to a sensible arrangement.
2. If you stay in UK ,and get work = stay there for now.
3. As per Bronte , if Bank know you have nil assets , pursing is pointless.

If say at end of 2017 , things have improved on job/income front , really do consider bankruptcy.
Bankruptcy FAR from being the end, can be the beginning.


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## Adecco (17 Dec 2016)

Gerry Canning said:


> Adecco. You obviously have sellable skills .
> 
> 1. Get advice on how to sort HMRC, I think they will come to a sensible arrangement.
> 2. If you stay in UK ,and get work = stay there for now.
> ...



Thanks Gerry.

So basically you're suggesting take my chances the bank won't pursue me?
They have 6 years right? Or is it 12?

Yes. Paying off hmrc and taking my chances with the bank is a definite strategy.
While I agree it doesn't make sense in bank pursuing me right now - I suppose the issue is the bank could come after me in 5 years and take any savings between now and then.

I have the option of a small lump sum Iva from a 3rd party. That writes everything off. But it seriously impacts employment as I said. (The reason being all my experience is in finsncial sector. )

I'm thinking of taking my chances with the bank. If I don't, then right now when not working is definitely the time to go for IVA lump sum. Hence why I need to make decision now.


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## Gerry Canning (20 Dec 2016)

Adecco,

I am all for paying your bills , but as things appear , you are effectively (bankrupt) from a previous life , so make a call and do whatever is in your best interests today .
.I see no advantage in wrecking your own future.
I just can,t envisage bank chasing you in future in UK.


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