# Should I go bankrupt in UK



## rmcmurphy (21 Feb 2013)

Being reading lots of posts on bankruptcy in the UK and am thinking about taking a trip across the pond.

I bought an Investment property in late 2006 for 300k currently owe 259k on it , currently I guess its worth anywhere from 125k-150k was valued by an auctioneer at 125k for social welfare about 2 years ago.

The investment property was not secured on my principal private residence on which I owe about 60k (But if I default it turns out the bank can still put a lean on my house for the shortfall)

Currently the investment property is easy to rent for 10 months of the year (Students) and rental income just about covers the tracker mortgage and management fees.

Have being going interest only on both property's for the guts of the last 12 months with the bank as I am at home with 3 small kids and other half only has temporary sporadic work so don't have the money to pay all bills and mortgages etc.

Just wondering if I sell my main house and pay off the 60k I owe I might have 150k left over.

If I then go to the UK and establish my main center of residence as being there and declare bankruptcy and hide the 150k under the mattress would that protect it from the bank going forward? 

As in can I can come back 12 months later to Ireland and buy a house here for cash and say I won the money playing cards or on the horses?

Just the stress of trying to make ends meet here is like a form of torture and the bank does not care. Would be a massive relief to be debt free.

I realize it might not be unpatriotic but I have 3 small kids futures to look out for and the bank wont take care of them.


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## Jim2007 (21 Feb 2013)

rmcmurphy said:


> Just wondering if I sell my main house and pay off the 60k I owe I might have 150k left over.
> 
> If I then go to the UK and establish my main center of residence as being there and declare bankruptcy and hide the 150k under the mattress would that protect it from the bank going forward?
> 
> As in can I can come back 12 months later to Ireland and buy a house here for cash and say I won the money playing cards or on the horses?



I don't think that it is appropriate for us to advise people on how to break the law!!!  But I will say that if you think fraud and insolvency practitioners will not figure this one out then you are going to get a very big surprise!!!


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## Bronte (22 Feb 2013)

rmcmurphy said:


> Just wondering if I sell my main house and pay off the 60k I owe I might have 150k left over.
> 
> As in can I can come back 12 months later to Ireland and buy a house here for cash
> 
> ...


 
As this post is no doubt what a lot of people are thinking and indeed what a lot of people are doing I'll reply.

McM you mention stress and what a relief it would be to be debt free.  What not sell both properties and pay off the NE and you'd have no debt based on the figures you've posted.  You could then start again with a clear conscience?  Or is it a case of wanting your cake and eating it too?  You want to keep the 150K but you don't want to pay the bank for the investement property that you willingly borrowed for?  

No the bank does not care about your children, but why should they.  They are your responsibility and not the banks.  And what this has to do with you taking this course of action, is it you justifying your actions, is it to ease your conscience?


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## munchy (9 Mar 2013)

Please have a look at this case. You could end up being imprisoned


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## Bronte (11 Mar 2013)

That's very interesting Munchy.  Wonder will any of our own returning UK bankrupt developers/high flyers get similarly caught.


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