How Will Filing Bankruptcy in the UK Affect Me in the U.S.?

Question:

Jon,

I’m a UK citizen & had good credit that I spent years building. Went to US to study/go to university, and opened up some credit cards while abroad. Debt mounted up & I lost job stateside and couldn’t afford payments anymore, and stopped paying CC’s.

My question is, if I apply for bankruptcy in UK, how will it affect me in the US? Will it affect me from getting my permanent residency/green card in the US? Will it stop me from working in the financial industry in the US? Will the bankruptcy show in my US records? This has been a stressful situation and I’m unsure as to what to do.

Thanks so much for your help!

James

Answer:

James,

I understand your concerns, but have a few questions to help clarify matters for me.

The debt you have, the credit cards and accounts you would include in a UK bankruptcy, are the accounts in the UK or the US?

I am assuming you are still residing in the US? This as you mention seeking a green card.

Going bankrupt in the UK will obviously affect your UK credit rating, and while you can include debts/accounts from other countries in a UK bankruptcy, such as debts in the EU, US, etc, the protection the bankruptcy affords you is only in the UK. You have no protection from collection agencies outside of the UK.

As to how a UK bankruptcy may affect you in the US is difficult to say. Some applications for jobs do ask the very broad question, “have you ever been bankrupt?”. The question is not location or country specific. As to how to answer the question if you have been bankrupt in the UK or elsewhere, is your decision.

A UK bankruptcy would not appear on a US credit history. While both countries use similar credit bureaus, they do not share credit files or accounts.

If you get back to me with more details by commenting below, we can look more at your options.

You may be able to place any UK accounts in a debt management plan or token payment arrangement for a period of time until you are earning more.

Regards,

Jon