I'm an Irish national but a U.K. Resident in London for the last 6 years. I'm single with no dependents - basically broke - unemployed and renting. with no assets.
I had some buy to let properties in Ireland which bank forced me to sell in 2016. This left a residual debt of c. €400k with interest now rising at c. €1,000 a week.
I tried to come to an informal arrangement with my bank but they were looking for way too much. (You can believe me on that point). As this repayment schedule would have failed I had no choice but to reject their agreement.
I have since received a letter a few months ago asking for full repayment of the outstanding amount in 21 days. Obviously this was not possible.
I'm assuming this is some legal step before lodging a judgement against me in the courts? Can I assume this has happened by now?
I was also involved in a tax scheme here in the U.K. which has since been deemed as tax avoidance (NOT tax evasion). The upshot of this is a debt of c. £40k to HMRC which will be called in in 2019.
Also I am currently unemployed and have been for the last 9 months - however I do have enough to keep me going for another 6 months.
What are my options?
Firstly - I have been an IT contractor for the last number of years so have earned a reasonable daily rate when employed.
I could attempt a one-off lump sum IVA / bankruptcy as I'm now unemployed - but of course this will destroy my credit rating in the UK. This would otherwise be the perfect solution.
However - and I have thoroughly researched this - but it looks like getting a job with a bad credit rating through bankruptcy/IVA is nigh on impossible. (All my experience is in the financial services sector in IT - meaning this would always be the most likely place to get a job). This will have a MASSIVE impact on my job prospects. I cant even get a job in the last 9 months with a perfect credit rating.
My main question is - will the Irish bank debt effectively go away? I know it will not legally go away for a few years - but will they attempt to pursue me in any way?
I know they haven't lodged a judgement in the UK as I checked my credit file - so its possible they may not bother at this stage.
They are also aware I don't have anything worth pursuing right now.
Essentially - one strategy is go bankrupt/IVA in UK - but then i cant get a job.
Alternatively - ignore the Irish bank. Pay back HMRC in 2019 (assuming i do eventually get a reasonable paying job like i had) - and just hope the Irish bank don't come after me. I think it goes away after 6 years? That way my credit rating is protected in the UK at least.
Basically - i feel that if my credit rating is ruined in both countries then getting a job in either country is very difficult. (Plus my preference is to stay in UK anyway). So i'm really prioritizing my current good credit rating in the UK right now.
What do I do? Become insolvent with the big risk of being unemployable? Or ignore debt while maintaining good job prospects?
Or could i go back to Ireland and become insolvent there? As HMRC would be listed as one of my creditors would my credit rating in UK be impacted if I went insolvent in Ireland?
I really don't know what to do and am hoping someone may have an outside the box idea. For now i think prioritizing job prospects at all costs - even if that means taking the gamble the bank will go away after the 6 year statute barred period.
I had some buy to let properties in Ireland which bank forced me to sell in 2016. This left a residual debt of c. €400k with interest now rising at c. €1,000 a week.
I tried to come to an informal arrangement with my bank but they were looking for way too much. (You can believe me on that point). As this repayment schedule would have failed I had no choice but to reject their agreement.
I have since received a letter a few months ago asking for full repayment of the outstanding amount in 21 days. Obviously this was not possible.
I'm assuming this is some legal step before lodging a judgement against me in the courts? Can I assume this has happened by now?
I was also involved in a tax scheme here in the U.K. which has since been deemed as tax avoidance (NOT tax evasion). The upshot of this is a debt of c. £40k to HMRC which will be called in in 2019.
Also I am currently unemployed and have been for the last 9 months - however I do have enough to keep me going for another 6 months.
What are my options?
Firstly - I have been an IT contractor for the last number of years so have earned a reasonable daily rate when employed.
I could attempt a one-off lump sum IVA / bankruptcy as I'm now unemployed - but of course this will destroy my credit rating in the UK. This would otherwise be the perfect solution.
However - and I have thoroughly researched this - but it looks like getting a job with a bad credit rating through bankruptcy/IVA is nigh on impossible. (All my experience is in the financial services sector in IT - meaning this would always be the most likely place to get a job). This will have a MASSIVE impact on my job prospects. I cant even get a job in the last 9 months with a perfect credit rating.
My main question is - will the Irish bank debt effectively go away? I know it will not legally go away for a few years - but will they attempt to pursue me in any way?
I know they haven't lodged a judgement in the UK as I checked my credit file - so its possible they may not bother at this stage.
They are also aware I don't have anything worth pursuing right now.
Essentially - one strategy is go bankrupt/IVA in UK - but then i cant get a job.
Alternatively - ignore the Irish bank. Pay back HMRC in 2019 (assuming i do eventually get a reasonable paying job like i had) - and just hope the Irish bank don't come after me. I think it goes away after 6 years? That way my credit rating is protected in the UK at least.
Basically - i feel that if my credit rating is ruined in both countries then getting a job in either country is very difficult. (Plus my preference is to stay in UK anyway). So i'm really prioritizing my current good credit rating in the UK right now.
What do I do? Become insolvent with the big risk of being unemployable? Or ignore debt while maintaining good job prospects?
Or could i go back to Ireland and become insolvent there? As HMRC would be listed as one of my creditors would my credit rating in UK be impacted if I went insolvent in Ireland?
I really don't know what to do and am hoping someone may have an outside the box idea. For now i think prioritizing job prospects at all costs - even if that means taking the gamble the bank will go away after the 6 year statute barred period.
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