Bankruptcy in uk, can I keep my job

J

JayPee

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Hi all, I have decided on a move to UK to file for bankruptcy as it seems the only option in our position. All depts exept the mortgages are mine alone, my wife name is only on them. The problem is my wife has the option to keep her job when we make the move. Just wondering if this is posible? Would be greatfull for any help on this.
These details were posted before.
Personal details
Net (i.e. after tax) Income self: nil income, un-employed construction
Income history: work has finally dried up completely after a slow death
Net income partner/spouse: E3100 works in advertising
Income history:
Steady
number of children 2
Amount of Mortgage Interest Supplement received
. none
Home Lender: Ulster Bank
Amount outstanding: 370k
Value of home:250k
Interest rate: Home has 3 sub accounts, 1 svr,1 (main part) 4.95 fixed, and 1 tracker
Monthly repayment Have offered E1800
Amount in arrears 22k arrears on home.

Summary of discussions and agreements with the bank.In Marp since Dec 2011 . Have been on interest only for the most part since then on both properties.

Investment property - Lender: Ulster Bank
Amount outstanding:350k
Value of home: 250k
Interest rate: fixed @ 4.68 Monthly repayment
Monthly repayment E540
Amount in arrears 9k
Monthly rent received E1300

Other loans and creditors -
Overdraft E1500
Credit Card 7k
Credit Union e.g. Loan of €3,000
Tax dept 75k
Loan from BOI 37k
 
Is your wife going to declare bankruptcy too?

If so, can she claim to be resident in the Uk and working here -even if it's structured that she is a consutant?

To me, it does not seem ideal that she should work in Ireland while you reside in the Uk. This would not help you claim to have moved permanently / or have COMI in the uk.

If you alone go bankrupt, you will loose your share of assets jointly owned by you and your wife and I think she will still be liable to pay the full amount to the bank. (open to correction if I am wrong).

Have you no income at all? No entitlement to SW?

In summary, I am not sure you have considered all the implications/requirements of moving to the uk to avail of bankruptcy.
 
Surely yours is a case for a PIA and try to keep the family home, no?
Bankruptcy means firstly that you would both have to do it for it to be effective in getting rid of all you and your wife's debts. Secondly it means no hope of holding on to the family home. It would have to be disposed of.
Are you sure the uk is the best option??
 
Brendan, this may be a new thread, but how are the people who hope to do a PIA supposed to be able to pay a €5k fee. I was astonished at this. In a judicial process people would be able to avail of the local Legal Aid Board. Surely there should a PIP attached to a citizens advice bureau or something? Or is the 5k to come out of the first sale proceeds? The papers report that it can be paid in installments, as if that was any easier. Am I missing something???? If I had the spare 5k the bank would have it by now!
 
Cantalia said:
Brendan, this may be a new thread, but how are the people who hope to do a PIA supposed to be able to pay a €5k fee. I was astonished at this. In a judicial process people would be able to avail of the local Legal Aid Board. Surely there should a PIP attached to a citizens advice bureau or something? Or is the 5k to come out of the first sale proceeds? The papers report that it can be paid in installments, as if that was any easier. Am I missing something???? If I had the spare 5k the bank would have it by now!
Click to expand...

Wow €5000 fee? No wonder I am now being persuaded not to file bankruptcy but to apply for a PIA
 
The PIP fee will ordinarily be deducted from the amount the debtor has available to pay his or her creditors. So, if you owe €1,000 a month but can only pay €600 the PIP fee is deducted from the €600. It's all the one to the debtor whether €600 goes to the creditors or whether €500 goes to creditors and €100 to the PIP - he or she is paying €600 a month.
 
@Cantilla
Please don't hijack a thread-its unfair to the OP who is asking advice on their circumstnces.
If you want to ask/complain about PIP fees-it's best to start a thread about this!
 
Hi Luternau,as far I understand she would have to declare bankruptcy too, and she would be in UK with me but working for an Irish company in UK, if that is posible.
Cantalia, yes, I think this is the only option, as our depts come to around 350k if the properties are sold (which I plan to do before we move) this is completely un-sustainable. I cannot see us struggling through another 6-8 years here and at the end of it still owing 200k to the banks (asuming a split mortgage was agreed and 200k shelved).
 
If you sell the properties any outstanding balance is then unsecured, meaning you can deal with it via a Debt Settlement Arrangement or DSA. At the end of the DSA period anything you haven't paid back is written off so you won't owe €200,000. You'll owe nothing. Its an option to consider as you can avoid bankruptcy. The usual term of a DSA will be 5 years. It could be a year longer, and it could be shorter.
 
Thanks DC, but if I sell the houses we have nothing here except my wifes job and the kids school (which they will surelly miss) and I could be out of this hell in 18 months and ready to start afresh in the UK. The option 5 years min here if my wife keeps working.
 
Sure, and that's a call you have to make: the disruption of moving lock, stock and barrel and going bankrupt but being done and dusted in a relatively short time versus staying put and dealing with it over a longer time frame. I wouldn't see owing a mortgage to the bank at the end of the term of a PIA as the determining factor in that decision. Clearly, if you stay and retain your house you will also owe on the mortgage whereas if you sell the house you won't but then you still need somewhere to live.
 
As I can make out,if I sell the rental property, the shortfall will go onto my home mortgage, bringing this upto 450k, say the bank shelve 200k for the duration of the PIA we would struggle. Then when the PIA is over we could have that 200k dropped back onto our laps, am I right in thinking this?
 
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