I currently live in America, but hold dual citizenship in both the US and UK. I am serious debt here in the US as a restaurant I started 5 years ago is looking at bankruptcy and liquidation here in the US.
My question is I am considering moving back to the UK and want to know if I go bankrupt in the US, how will it affect me back in the UK?
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I understand your question and concern but need a bit more information and details.
Are you winding up the restaurant/company in the USA, and also going bankrupt yourself? Most businesses in the USA use Chapter 11, if they are reorganizing and can show a plan to be viable or profitable again, or they can file a Chapter 7, to liquidate the business.
If you are also going bankrupt, what Chapter of bankruptcy would you file? I am assuming Chapter 7, so you can be done with the debts, and move back to the UK.
Going bankrupt in the USA will not affect your travel back to the UK, you are a UK Citizen and as such you are allowed to live here. You may wish to research the uk.gov website for travel information due to the Covid virus and entering the country. There had been as of this writing a quarantine period.
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Bankruptcy in the US does not affect your UK credit, only because it is not reported outside the US to a UK credit bureau.
However, with that being said/written, if you apply for credit in the UK and you are asked the broad question, “have you ever been made bankrupt”, the question does not specifically ask if you were made bankrupt in the UK; it is a very broad question.
How to answer is your decision.
Some lenders here in the UK may note you have lived outside the UK for a number of years and request references from your previous creditors, including those in the USA. It can be rare, but it can be a possibility.
My advice has always been, do what you need to do to resolve your debt issues in the immediate, and worry about the future later….it is, after all, the future. And there are things you can do to improve your credit if the need be.
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