Moving to the UK for bankruptcy, a few questions

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Dmg11234

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Hi, I'm 26 and having a hard time getting my head around all of this, bankruptcy is brand new to me so I have a couple of questions I'd really appreciate some answers to.

I bought a house with my partner 5 years ago when I was 21. We used a family friend as a broker and between one thing and another, unknowingly signed my soul away in the form of a waiver that stated I'd take on the mortgage if anything happened to my fiancé. Unknown to me, his life insurance policy lapsed after a year, and last April he passed away.

I've spoken to solicitors etc and the bottom line is I'm liable for the whole debt. I have been unable to pay the mortgage for the past year as I've also taken on all the bills that were covered by us both before. I spoke to the bank last week and they said based on my earnings and outgoings, the mortgage is unsustainable.

I've decided to hand the keys back, let the bank sell the house, and then declare myself bankrupt from the UK. I've got friends and family in Wales and that's where I'm going to go.

I'd really appreciate if anyone could give me a rundown/timeline of how this all happens and what I can expect. What will I need to do for the bank? How long will I need to hang around here, from when I actually give them the keys? Any other info, I'd really appreciate it.

Thanks
 
Forgot to add some questions. When i hand the house back, whats the process as far as the bank selling the house. Obviously ill be liable for the selling cost legal fee etc. Should i wait until the house is sold and the bank tell me these additional costs before declaring myself bankrupt? Or will the bank make me pay the fees as they come up? I dont have a penny so cant sell the house myself
 
Hello Poster, thanks for your enquiry. I hope I'll be able to answer these and the follow up Q's you posted. Check below for my answers within your question

Steve Thatcher
www.irishbankruptuk.ie

Dmg11234 said:
Hi, I'm 26 and having a hard time getting my head around all of this, bankruptcy is brand new to me so I have a couple of questions I'd really appreciate some answers to.

I bought a house with my partner 5 years ago when I was 21. We used a family friend as a broker and between one thing and another, unknowingly signed my soul away in the form of a waiver that stated I'd take on the mortgage if anything happened to my fiancé. Unknown to me, his life insurance policy lapsed after a year, and last April he passed away.

I suspect that what you took on was a joint and several mortgage, which meant that you were always responsible for the whole mortgage

I've spoken to solicitors etc and the bottom line is I'm liable for the whole debt. I have been unable to pay the mortgage for the past year as I've also taken on all the bills that were covered by us both before. I spoke to the bank last week and they said based on my earnings and outgoings, the mortgage is unsustainable.

At least everybody agrees with this.

I've decided to hand the keys back, let the bank sell the house, and then declare myself bankrupt from the UK. I've got friends and family in Wales and that's where I'm going to go.

Good, make sure that if that is what you are going to do you get a record of when you arrived, such as getting a Barclay's Bank account opened. Get a National Insurance number so you can get a job.
I do a 23 point plan on all of this

I'd really appreciate if anyone could give me a rundown/timeline of how this all happens and what I can expect. What will I need to do for the bank? How long will I need to hang around here, from when I actually give them the keys? Any other info, I'd really appreciate it.

In short, if they will accept a surrender, you do not need to hang around at all. You can simply move to Wales, wait until your COMI is established and then simply apply for bankruptcy.

See your next set of questions for those answers

Thanks
Click to expand...
 
Hi here are the rest of your answers

Steve Thatcher
www.helpwithdebtuk.com

Dmg11234 said:
Forgot to add some questions. When i hand the house back, whats the process as far as the bank selling the house.

The bank will put it in auction, sell it and then write to you asking you to pau the shortfall.
Prior to this they will write to you getting you to sign a form saying you will be responsible for the shortfall. You would be anyway under the terms of the mortgage, so no problem in signing that.

Obviously ill be liable for the selling cost legal fee etc. Should i wait until the house is sold and the bank tell me these additional costs before declaring myself bankrupt?

No need to do that at all. you can go bankrupt once you have established your COMI even if the property has not been sold.

Or will the bank make me pay the fees as they come up? I dont have a penny so cant sell the house myself

You will not have to pay any fees up front
Click to expand...
 
Steve I greatly appreciate your answers and help/advice. I am starting to feel positive about the whole thing. One more question which isn't of huge importance. My car is worth about €3k, would that be seen as an asset?

Also, I am going to start selling some items from my house, certain pieces of furniture etc to try to get some money together for my move. Is that ok? I really don't want to do anything that is out of line at all. Thanks again
 
You can keep the car if you need it for work or to get employment, it can have a value of up to £2000, altho some OR's will only allow £1500.

You can sell whatever you like of your personal possessions to fund this move.

If you dont need to car, that is a good source of larger funds

Steve


Dmg11234 said:
Steve I greatly appreciate your answers and help/advice. I am starting to feel positive about the whole thing. One more question which isn't of huge importance. My car is worth about €3k, would that be seen as an asset?

Also, I am going to start selling some items from my house, certain pieces of furniture etc to try to get some money together for my move. Is that ok? I really don't want to do anything that is out of line at all. Thanks again
Click to expand...
 
Thanks Steve, so in that case would you recommend I sell my car before I move? Due to its value now of €3k is (2004 VW Polo)
 
Steve one last question I promise! When is my COMI established? You said once my COMI had been established I can leave

Thanks
 
Once you have established your comi you can present your petition. Then you need to stay for as long as it takes for the OR to finish with your case. Depending on how complicated that is it could be a while. Generally I would think the OR will finish with most cases in 3 months. You can move your COMI at any time, and so if you were to get a job back in ireland, it would be permissable to leave and take that up.
Always remember not to rush things. You are investing a lot of time and money in getting the bankruptcy order, dont ruin it by going back to ireland too early and getting on the wrong side of the OR

Steve Thatcher

Dmg11234 said:
Steve one last question I promise! When is my COMI established? You said once my COMI had been established I can leave

Thanks
Click to expand...
 
UK Bankruptcy

Steve, if you wouldn't mind I have a question. If a person is in bankruptcy in the UK and has a High Court case here in Ireland can/will the bankruptcy discharge be delayed until the High Court situation has been sorted here first or are they completely separate??

Thnx
 
i guess it depends if you were bringing or defending the claim. If bringing the OR would need to decide if he could fund the continued action. In that case it would go out to a trustee and he would see if the creditors would fund it further, or he will compromise it. It will not hold up the bankruptcy or your discharge.
if you are defending a claim, the OR will let it go to Judgement, in any event you are going to write off the debt so who cares. It will not hold up the bankruptcy

Steve Thatcher

mickeyg said:
Steve, if you wouldn't mind I have a question. If a person is in bankruptcy in the UK and has a High Court case here in Ireland can/will the bankruptcy discharge be delayed until the High Court situation has been sorted here first or are they completely separate??

Thnx
Click to expand...
 
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