If you file for bankruptcy in England from Australia the process should not affect you if handled correctly. However, if you own assets in Australia these could be affected by the English Bankruptcy.
For instance, if you are renting a property the bankruptcy would not affect the tenancy. The Insolvency Service may decide to write to the Landlord as this is the standard process when dealing with a bankruptcy in England.
If you owned a property in Australia it could be affected depending on the amount of equity. An asset is an asset even if it is based in a different Country so if you own a property with (for example) $100,000 equity the Official Receiver is going to take an interest in this.
If the property has no equity or a low amount it may be excluded from the bankruptcy or the Insolvency Service may request that you find an amount equal to the equity and pay this back to your creditors in England. These situations can become very complex and moves into “Cross Border Insolvency”. If you are considering bankruptcy from Australia contact our company for further advice on how your property would be dealt with.
If you have disposable income then the bankruptcy in England could affect this. The Insolvency Service would look to apply an income payment agreement which would last for three years. In this type of situation you pay a set amount per month to the Insolvency Service in England. This is then split between your creditors and this is one of the ways that money is recovered from an individual in bankruptcy.
