File Bankruptcy from Abroad with Property – 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.

Q. I live in Florida and want to go bankrupt in England. I have a house in England (that I want to get rid of) and a house in Florida (that I want to keep)-both are in negative equity. Would I lose both houses by declaring myself bankrupt from America?

Normally if you live overseas, the property in England would be returned to the mortgage company which would be the best option if you want to get rid of the house. Any negative equity will form part of the UK bankruptcy from Florida.

As your property in Florida does not have any equity, it would not be seen as an asset in your English bankruptcy. If it is the family home there should not be an issue with you keeping the property in America however, the American mortgage company may be informed of the bankruptcy in England.

There are various factors to consider here and if you are in this type of situation speak to one of our overseas bankruptcy advisors for further information. We have helped many clients from America to declare bankruptcy while living overseas and many have had property in Florida that has not been affected by this process.


Q. I need to file bankruptcy in England while living overseas in Thailand. The problem I have is that I own a house in London that is tenanted and also in negative equity-can you assist me to file bankruptcy from abroad?

We are pleased to say that we can help you to declare bankruptcy in England while you are living in Thailand.

The bankruptcy has a couple of added complications due to the house situation and depending on the length of the rental contract the Official Receiver may step in and deal with the tenants once you are bankrupt. In these types of situations the collection of rent will be made by the Official Receiver and the property will eventually be repossessed by the mortgage company.

The good news is that any negative equity will be a debt within your bankruptcy from Thailand.

Contact us for further information and advice on filing bankruptcy while living overseas in Thailand.


Q. I live overseas in Canada and want to file for bankruptcy from abroad-I have a jointly owned property in England with my ex-Wife that is in negative equity of around £10,000. What would happen here-I don’t want my Ex to lose the property as our children still live there.

You can file bankruptcy from Canada in England and also include the negative equity in the house. As there is no equity in the property, the house will not be seen as an asset, although the Official Receiver does have an “interest” in the property due to your bankruptcy.

In this type of situation your Ex-Wife will need to purchase the interest that the Official Receiver holds, and this will normally be for a set figure of £1000. There will also be some legal charges, but if your Wife is able to do this she will then be fully responsible for the property and you will have no further liability.

The house will not be at risk as long as your Wife continues to pay the mortgage so nothing much will change with regards to their situation in the UK.


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