Will filing bankrupcy in UK clear my Irish debt?

O

OnTheHouse

Guest
I have lived in the UK with over a year. I own an apartment in Ireland with over 100k negative equity. I am current with my payments but can't keep this up.

I have done some research into the the procedure of filing bankruptcy in the UK. I am told that it will take 12 - 36 months to complete. The reason I am considering this is to clear my Irish mortgage which I intend to stop paying once I file for bankruptcy in the UK.

I need some GOOD legal advice to find out if this will solve my Irish problem? Will the Irish bank still pursue me and for how long and to what extent?

thank you...
 
Once you are declared bankrupt in the Uk, you cannot be pursued by the Irish banks. Their debts will go into the UK bankruptcy and will be dealt with by the UK courts system. The banks in Ireland won't like it but there is very little that they can do about it.

A good insolvency practitioner in the UK would be well able to advise you.
 
Time said:
The banks in Ireland won't like it but there is very little that they can do about it.
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That is something I've been wondering about for a while now, under EU rules for the free movement of people, one is only entitled to stay on in a country after the first 3 months allowed for job search, if one can show economic viability. Declaring bankruptcy would suggest otherwise, so is there any way an Irish creditor could trigger a deportation of the person declaring bankruptcy???

Just a thought...

Jim
 
LOL!

Not a chance. The rules are very different for the UK. Irish people are considered settled in the UK under UK law and cannot be deported.
In any event it is a civil matter and persons cannot be deported over civil matters. A debt owing is not a criminal matter actionable by law enforcement agencies.
 
The reason I am asking is that I am getting conflicting information. Some people are telling me that should I return to Ireland the bank can still be pursue me despite declaring bankruptcy in the UK??? ..... Has anyone actually done this? I would love to hear from you.... thanks!
 
If the Irish debts has been dealt with by a UK bankruptcy and you have been discharged from the bankruptcy, the Irish banks can do nothing should you ever decide to return at some time in the future. The debt at that stage is dead and gone.
 
HI

Im in a similiar situation, although mine is more complicated as i moved to the UK 2 years ago and rented out my 2 bed appartment i still received the Mortgage Interest relief for first time buyers and didnt pay tax on the rental income.

If i file for bankruptcy in the UK could the Irish revenue come after me at some point in the future (if i ever return home) as my case is tax evasion rather than a case of tax liability??

Could i claim that all debt (i.e. any revenue bill) accrued before bankruptcy should have been included in the bankruptcy?

Would i be best to write to the revenue and come clean and then but all debt into the bankruptcy?

Any knowledge on this would be appreciated.
 
Hi onthehouse

I was at a recent course run by insolvency practitioners in Derry.

According to them the Irish Banks cannot pursue you once bankruptcy is declared in the UK, they also stated that they have dealt with many individuals who have done this

All debts come under the bankruptcy umbrella.

I hope this helps - I am not sure but I think they may offer a free consultation, it was Ronan from Mc Cambridge Duffy

Tomorrow
 
Tomorrow thanks for that answer it
may help me in my situation too.

i have been told though that ''The bankruptcy would only take care of your unsecured debts so you need to go for a voluntary repossession of the property in ROI so that the shortfall on the mortgage is then unsecured''

Are you aware if taxes (revenue bill) can be totally written of
in any bankruptcy?

Does anyone know any good insolvency practicianer in the UK?

or ideally an Irish person who has been through this process or is currently going through this process?

Thanks
 
i have been told though that ''The bankruptcy would only take care of your unsecured debts so you need to go for a voluntary repossession of the property in ROI so that the shortfall on the mortgage is then unsecured''
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Correct. You need them to be chasing you for the shortfall before declaring bankruptcy in the UK.
Are you aware if taxes (revenue bill) can be totally written of
in any bankruptcy?
Click to expand...
They are.
Does anyone know any good insolvency practicianer in the UK?
Click to expand...
The phone book is full of them.
or ideally an Irish person who has been through this process or is currently going through this process?
Click to expand...
I doubt anyone is going to declare that on this site for fear of the backlash from bank shareholders and moral guardians.
 
Ronan from Mc Cambridge Duffy
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is based in Derry and I have also found him very informed and very helpful. As he has a lot of experience of Irish people going to the UK for bankruptcy, he is well worth talking to.

Evading tax is a criminal offence. While the debt may disappear, the Revenue could subsequently pursue you for criminal evasion of taxes. Unlikely but worth pointing out.

i have been told though that ''The bankruptcy would only take care of your unsecured debts so you need to go for a voluntary repossession of the property in ROI so that the shortfall on the mortgage is then unsecured''
Click to expand...
Correct. You need them to be chasing you for the shortfall before declaring bankruptcy in the UK.
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Getting rid of a mortgage is not that simple. I have not been able to get anything definitive on this. As Time points out, bankruptcy only covers unsecured debts. You would need to somehow convert the mortgage into an unsecured debt which is not easy.
 

Would it be an option for the poster to sell the property and then have bank demanding payment of the shortfall? Just a thought.

I have a question of my own on this.
With regards to meeting the required residency and economic interest requirements, would a person have to have give up this job before going the uk bankrupcy route?

Brendan/Time
Given that debt problems reach the top of the spike after unemployment peaks, we are not even close to the summit of this debt problem.
Do you think there is merit in posting the options open to people on going the bankruptcy route in the UK and the requirements they must meet? While not advocating people to go this route in mass, it might be invaluable to some with large debts they will never be ablel to meet.
 
Would it be an option for the poster to sell the property and then have bank demanding payment of the shortfall? Just a thought.
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Not really. The sale of the house would not complete because of the shortfall. The bank would have to give permission for the sale to proceed.
With regards to meeting the required residency and economic interest requirements, would a person have to have give up this job before going the uk bankrupcy route?
Click to expand...
Not necessarily. If the person had a job they would have to pay the official assignee an amount from the wages for the period of the bankruptcy which would be a year in the UK.
Personally I agree. I doubt the Irish government will reform the bankruptcy laws any time soon.
 

Luternau

Great idea and thanks very much for volunteering to do a Key Post. Let me know when you have it done.
 
From my research on this topic I found out the following.
You can only declare unsecured debt in your bankruptcy. You would need to hand back the keys of the property to the bank and agree to them selling it. The shortfall would then be included in your bankruptcy. You include all your creditors in the bankruptcy so you would include the amount owed to the Revenue as well.
Although you are free from bankruptcy after one year, you may have to pay a percentage of your income for 3 years.
There seems to be a huge industry in the UK for bankruptcy and not all advice is impartial.
bankruptcyhelp dot org dot uk seems to be a good site for information - I can't post URLs yet
 
Thanks Maryb

This is pretty much what i have found out as well, i presume if one were to hand back the keys to the bank, the bank would agree to sell the house as they would not be receiving any income from the property so therefore it would be in there best interest to sell the property?

From what i have sussed out the bankruptcy would then stay on your record for 6 years in the UK.

But what im struggling to find out is would it appear on the Irish bankruptcy record, i presume it would.
How long would it appear on the Irish record for??

Anyone with any knowlege on this, it would be greatly appreciated.
 
So, do I need a full foreclosure judgement against me in the ROI before I start the bankruptcy procedure in the UK?
If I hand back the keys to the bank today, how long does it take before the bank will have a full foreclosure judgement against me?

thanks!!
 
If you hand back the keys and sign the necessary legal papers for the bank there is no reason for them to get a judgment against you is there if you tell them you are going bankrupt. Not sure how this works though in practice. Why don't you contact the bank and see what they say. Mortgages department in Dublin not your local branch.
 
You need to box clever here.

The bank still needs a judgement in the high court even where there is a voluntary surrender. If the bank get wind of a bankruptcy in the offing they will simply sit on their hands. You need them to convert the mortgage into an unsecured debt. They won't want to lose out. If you tip them off they will wait until your UK bankruptcy is over and then hit you with the shortfall.
 
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