Will filing bankrupcy in UK clear my Irish debt?

have been having a look, do you inform your mortgage company you intend to file for bankrupcy and then hand the keys in... or do you just (And I don't mean JUST as I know it is a big step) hand the key in and then the shortfall after the house is sold is the unsecured loan....?
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Please ensure that you make no decision without obtaining full information from a UK Insolvency expert. This is a serious step and should not be taken until you have a clear understanding of what is involved and whether UK bankruptcy is suitable to your circumstances.
 
Thanks a million Bronte... We decided last night that this is what we are going to do, if Politicians and Sean Quinn can do, what can't ordinary people as well.. and Feck people who say it is unpatriotic...

We have 2 small children who's future we have to secure, and what hope is there for them over here..

as soon as we save the money we need to keep us for a few months we are gone... will keep you posted of our developments as we get ready to move, started to sort through stuff this morning, going to do a car boot sale and start selling stuff, all towards the 'New Life Fund'...
 
stressedlady said:
Hi Steve.. your information is brilliant...
I live in Ireland.. My husband who is a british citizen and myself, are looking to return to the UK as I am a recent Graduate with a degree and cannot get a job here... We also have 2 small children.. We are in negative equity.. Would you recommend, us to hand the keys in, come to a agreement for a loan for the shortfall, then when we are resident in the UK, declare bankrupcy....
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I think the first point you need to understand is that you do not declare yourself bankrupt - you are judged to be bankrupt, there is a very big difference, in that the decision is not up to you! and furthermore simply having negative equity does not mean that you are bankrupt....

I would also point out that not one of the UK advisors so far has been able to show case law where by the Irish or other EU courts for that matter, have accept the jurisdiction of a UK court over property located in their country... we have seen lots of opinions but not decisions.

And the end of the day you should seek proper legal advice before you act.
 
uk

Hi Streeedlady

Sorry to here about your problems, we are in the same mess and had decided a couple of months ago to go to the uk and file for bankrupcy.

But yet we are still here, one day were going and the next day were staying. Like most people we were brought up to pay our way and pay our bills but having lost my job, my ex cant get a job and both our health taking a turn for the worse lately were still struggling to make a decision we are still undecided, the banks wont let us sell the house unless the mortgage is cleared in full and our other creditors want there money, every day its the same letters and calls. It should be an easy decision to make but for some reason the moral hazard keeps getting in the way.

We sat done one night and said right were going to the uk and then we starting getting stuff ready for a car boot sale that it really hit home, how things have become so messed up.

I had a point but its gone out of my head sorry, cant think straight these days.

Do you have to go to the UK, as I have looked into it and also asked Steve who posts here often and you can go to the north as the process is still the same. To rent a place in the north isnt as expensive as london and you can still see family and friends. Our plan as of today is to look for a place in the north and try and scrape some money together and move there as soon as possible, but that could change tomorrow.

If you are claiming the social make sure that when you go to the UK that you transfer your money over with you as you can keep your dole for 12 weeks when your looking for a job in an other eu country once you notify the social. I think its 12 weeks but how ever long it is, it will help.

Keep the chin up and best of luck as Im sure you have been through absolute hell and back to come to this decision.
 
Hi Apple,

Just had a great chat with a solicitor up the north who deals with this Issue and she has totally put my mind at ease... We are going to get the money together and just go.... the situation as it is is totally stressing us both out and impacting on our family life, which is not a good thing to be honest...
 
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Hi stressed

thats good to hear did she tell you anything that might be of interest to the rest of us that are going that route.

Glad to hear that she put your mind at rest.

keep us updated.
 
Hi Stressed

I tried to send you a pm but unfortunaly i cant. would you have any idea of the cost of the process as I seen some sites asking crazy money to help go bankrupt.
 
hi stressed

thanks for that, did you ask about moving to the north?. I was told that you have to be living there for 3mths and a day or 3 mths and 2 weeks to be sure of comi.

Can anyone here confirm the length of time you need to be living in UK/NI for COMI.
 
don't know about the north but it is definetly 6 months in England... NO definetly heading for the UK, have family over there.. If I learn anymore, will let you know.. keep the posts coming, find them great.. I was starting to feel Like I was the only one going through this stress
 
thanks stressedlady. Thats good you have family in the uk. We're not alone alot of people seem to be taking this route.

best of luck with it all
 
stressedlady said:
she gave me a quote of starting at £300 + vat.........
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Starting at 300? What does that include. It's good you've talked to a professional. How did you find her? Also be careful, make sure you get a quote for the full price.

My questions are not personal, but to make sure you are not being scammed and to help others who will follow your course of action.
 
apple said:
I had a point but its gone out of my head sorry, cant think straight these days.

.
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Hi Apple, like a lot of people caught in this stressful situation it is only normal that you are unable to think straight. But for the sake of your family you need to. Don't worry about moral hazard, if you cannot pay your debts then you cannot, and what you need to focus on is getting out of the mess and getting on with your life. You are doing nobody any good living day to day with the worry of the creditors at you. Far better for you and your family to end this legally, and start afresh.

Courts are not interested in moral hazard, nor morals in general and neither are banks, legalities are what matters.
 
Hi Stressed!

Did the solicitor confirm that UK bankruptcy would clear the Irish debts? It sounds highly unlikely to me - the Irish bankruptcy rules are extremely punitive and unfair, and quite different from the UK system. Or are you thinking along different lines now?

I know I did some research on different bankruptcy systems in different countries some time ago. I put them in a free e-book which you can get from my website should you be interested. It is on the Debt Management page on the Money menu. :) The website is the same as my user name in co uk though.

Certainly moving to a different country seems like a sensible move anyway, if you really thing things are out of control and there are no jobs available where you are. Not sure what jobs are like in the North though...
 
alphatucana said:
Did the solicitor confirm that UK bankruptcy would clear the Irish debts? It sounds highly unlikely to me
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Of course you can do this, many many high profile cases in the media and plenty more not high profile. I'm sure that the likes of Deloitte, PwC and others have plenty new business in dealing with well heeled broke clients beating a path to their door on how to go about this. I haven't looked up those company websites but I'm sure it's mentioned there somewhere under insolvency practioners and not just accountants, the top law firms in Dublin etc.
 
Bronte said:
Of course you can do this, many many high profile cases in the media and plenty more not high profile.
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Do not mistake the media or legal opinion for an actual judgement! To the best of my knowledge we have yet to see a case where an Irish or other EU court for that matter, has accepted the jurisdiction of a UK court in respect of property - the EU directive makes a distinction here, so it could turn out not to be so clear cut as people assume.
 
Isn't this the major problem??

Time said:
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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So the banks still have all the power because they have the secured debt!!
So if I have this right you have to stop paying the mortgage and offer voluntary surrender and then wait and hope the banks issue a judgement against you- and THEN go to UK- not simple is it??!!
 
You dont need a high court judgement to surrender possession of a property to a bank. Also the bank cannot pursue you for any shortfall post bky even if the property is sold after the bky order is made. The bank wont care if you intend to go to the Uk for the purpose of filing for bky. All they will be interested in will getting the proceeds of sale of the property.
 
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