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Going Bankrupt in the UK From The U.S. – John

I have large unsecured debts in the UK as a result of a divorce there and now live here in the USA. I have no assets in either the UK or the USA, but do have a job with a salary – I am now married to the US Citizen – we are in rented accommodation. I entered into a lump sum IVA just before I left the UK which was approved. However I am now needing a varaition order as the HMRC has made a claim.

If the variation order fails, I am considering applying to go bankrupt in the UK. I have read your excellent comment on how to go about this, but want to know if my US Salary will be called upon for 12 months to make payments or whether they will simply write off everything and make me bankrupt in the UK and wash their hands of me? Can you offer any advice?

John




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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

2 Comments

  • Technically all of your worldwide income and assets would have to be disclosed in your UK bankruptcy. Also, the clock is ticking on how long you can file in the UK after having moved out of the country so I would suggest you contact Jon at Bankruptcy.org.uk and talk to him about specifics of your situation.

    The reality is that I have only seen a few cases where international income was ever claimed by the UK court. The bottom line is it will be a fairly painless and straightforward affair.

    Certainly the HMRC issues mucks up the works for a variation order. I’m sure the HMRC claim will be enough to reduce the payout to creditors and potentially make them not want to participate.

    Steve

  • Technically all of your worldwide income and assets would have to be disclosed in your UK bankruptcy. Also, the clock is ticking on how long you can file in the UK after having moved out of the country so I would suggest you contact Jon at Bankruptcy.org and talk to him about specifics of your situation.

    The reality is that I have only seen a few cases where international income was ever claimed by the UK court. The bottom line is it will be a fairly painless and straightforward affair.

    Certainly the HMRC issues mucks up the works for a variation order. I’m sure the HMRC claim will be enough to reduce the payout to creditors and potentially make them not want to participate.

    Steve

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