Living Overseas with UK Debts – FAQ

On this section of our website we are posting some of the questions that people email us from all over the world. Hopefully you will find the answer to a query that you may have. If not, leave a comment below and we will do our best to answer you.

Click here to return to the main Bankruptcy from Abroad FAQ area.

IVA and Bankruptcy Advice for UK Citizens Overseas

Q: I am living in Asia with old debts from the UK; can I declare myself bankrupt from Asia without returning home to appear in Court?

We can confirm that you can declare yourself bankrupt from Asia without returning home. You need a specialist to help you with this process and you must have been living in Asia for less than 3 years.

 

Q: I am living abroad and am currently in an IVA. I am struggling to make the payments and have missed one month already. Can I go bankrupt from abroad even though I am in an IVA? Also would I need to return to the UK to file the bankruptcy?

Being in an IVA and living overseas does not stop you from filing for bankruptcy. An IVA agreement is an official agreement between you and your creditors. For this reason the IVA needs to default before you can file for bankruptcy.

An IVA is normally considered to be defaulted after you have missed three payments. You must however, inform the IVA Company that you intend to apply for bankruptcy. You also need the IVA Company to confirm that they have no objection to the bankruptcy and this confirmation is required by the Court when the bankruptcy petition is filed.

We can confirm that this process can be handled on your behalf and you would not need to return to the UK to file the bankruptcy. Our specialist service can help to deal with your IVA Company, preparation of the bankruptcy and presentation of the bankruptcy to the High Court of London. We can help and advise on how to deal with this situation and will handle all of the complex aspects on your behalf.

If you are living abroad and have an IVA in the UK then contact us for help and advice by completing our short questionnaire. We will contact you to discuss your circumstances and provide the help and support that you need.

 

Bankruptcy in UK and living abroad?

Q: I am living overseas and have a debt management plan back in the UK. I have been paying this for around two years and owed approximately £24,000 when I started the repayments. I recently found out that I now owe slightly more money than when I started. Can I file for bankruptcy from abroad when in a debt management programme?

A debt management plan (also referred to as a DMP) is an informal agreement between you and your creditors. These agreements are normally administrated by a professional company and your one payment is split between your creditors with the debt management company also taking a small fee to cover their costs.

As a debt management program is not a formal agreement the creditors are not forced to hold interest and/or charges. For this reason (especially if you pay a low amount to your creditors per month) you can find that the amount you owe may not really reduce and in some cases (such as yours) can actually increase.

You can file for bankruptcy from abroad when in a debt management agreement. Our service can help you to deal with this and we will contact the debt management company to obtain details of the amounts owed and creditor information.

We will then prepare your petition and file the bankruptcy on your behalf. In all cases we recommend a free initial consultation with one of our experienced advisors. For help and advice regarding debt management and bankruptcy from abroad contact us by completing our short online questionnaire.

 

Can I file for bankruptcy from abroad?

Q: I moved to Australia from Scotland just over two years ago. I admit that I have buried my head in the sand and not even told my creditors that I have moved abroad-I have debts of around £40,000 which is a mixture of credit cards and unsecured loans. I understand that as I moved from Scotland I may not be able to apply for bankruptcy in the same way as someone that has moved from England or Wales. Help-what can I do?!

We normally manage to find a solution to most people’s problems. In some cases bankruptcy may not be the best option or in particular circumstances may not be possible from overseas.

You are correct in saying that as you moved from Scotland a different Insolvency Law applies to your case. If your last address was in England or Wales we would be able to file the bankruptcy on your behalf. As you moved from Scotland the Insolvency Laws applicable to Scotland apply to you and your debts.

In your case you have options. You could file for Bankruptcy (known as sequestration in Scotland) but you would need to return to Scotland and present the paperwork in person.

One option that you may have which would not require you to return back to the UK may be a Trust Deed. This is a formal agreement where your debt is reduced and a reasonable payment amount agreed. As long as you keep up payments this would clear you debt over a set period of time.

For further help with this situation contact our company by completing our short questionnaire and we will get in contact to discuss your circumstances.

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