Will My Assets Be Affected?

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.

What Assets Are Exempt in Bankruptcy?

Q: I am living in Canada and considering declaring myself bankrupt from overseas. I have debts in England and I can no longer afford to maintain the payments. I recently got married in Canada and my Wife owns a house here. Would this be affected by my bankruptcy?

If the property is in your Wife’s name and owned by her then in most cases it would not be affected as it is not your asset. If however you are paying the mortgage on this property, it could be seen that you are helping to build the equity. In this case you would need to discuss this situation further with an advisor from our company.

 

Q: I have three properties in England and one jointly owned in South Africa. The three properties in England are rented out and I purchased these on a buy to let basis. The problem I have is that the rental income from the properties is not covering the mortgages and I have built up around £80,000 of UK debts. If I go bankrupt in the UK will lose all of my properties including the one in South Africa? I wish to stay in South Africa and do not intend to return to the UK.

This is a complex issue but one that we can help with. In these types of situation bankruptcy will deal with all of the issues that you have in the UK. With regards to your property in South Africa it is not definite that this will be lost or form part of the bankruptcy. It is dependent on the amount of equity that you own. An asset is an asset no matter where it is located so a property in South Africa can form part of an English bankruptcy. It is very complex for the Insolvency Service to deal with an overseas property and any creditors in South Africa should be treated preferentially in these types of situations.

There would be options where your equity can be purchased from the Official Receiver and this may be the best course of action.

In this type of complex situation you need to take specialist advice. Complete our short questionnaire for further assistance.

 

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