A reader asked:
We are moving to Queensland, Australia very soon to live with family. We are both pensioners with no savings or assets and my husband has very large debts from a business failure a couple of years ago. We are hoping that once we get there we could get the money together for his bankruptcy fees. Will he be able to use the online application and file for bankruptcy?
Before 2016, if you had left the country and wished to go bankrupt in England, your bankruptcy petition had to be presented in the High Court in London.
So either you had to return to England or you had to appoint someone with Power of Attorney to do this for you – there are various firms that specialise in this. Added to the high bankruptcy fees, either of these options was very expensive!
But now you can apply from abroad using the online application form. And post-Brexit the rules are now the same whether you are living in the EU or elsewhere.
You do not have to be in England and Wales to apply for bankruptcy
In 2016, the Insolvency Service replaced the court process with an online bankruptcy application. This is described in detail in How to complete the online bankruptcy form.
You don’t have to be physically present in England or Wales to submit an online application for bankruptcy. But there still is a check that this is the right place for you to go bankrupt.
The Insolvency Service system will detect when an application is made from abroad. The Adjudicator, who makes the decision on accepting/refusing your bankruptcy will need to confirm you meet an eligibility test before they can process it.
Before 2021 there were separate rules for applications from EU countries. Post-Brexit, there is now just a single test whenever you live.
You are eligible for bankruptcy in England and Wales:
- if you live in England and Wales (in other words you are just temporarily abroad) OR
- if you have been ordinarily resident in England or Wales or, had a place of residence there or have carried on business there at any time in the three years preceding your application.
National Debtline has a good factsheet on this: Bankruptcy and foreign issues.
So good news for the reader emigrating to Australia
This is very good news for the person who asked the question above.
Once he has submitted his application, he may be contacted by the Adjudicator to confirm where he was living in England. He could prepare for this by thinking what he could email as evidence showing that he was living in the UK – this could include his last P45, letters from HMRC, a tenancy agreement, a council tax statement with his name on it.
I think he should assume that it will take longer than the Adjudicator’s target two working days to approve his application – and not worry if he doesn’t hear back quickly.
Will bankruptcy in England hurt my credit in my new country?
International links between credit reporting agencies or systems are not at all common. But I can’t say it’s impossible. You could ask on ex pat forums in your country – if no one has come across any links there may well not be any.
But is this a good idea?
Just because you can now apply to go bankrupt easily from outside the UK doesn’t mean that bankruptcy is necessarily a good option for you.
Your income and assets outside the UK will be included in your bankruptcy. You may have to make monthly payments for three years if you have sufficient disposable income. And you need to be sure whether bankruptcy will have any effect on any visa or nationality applications you make.
So take some good debt advice! You can phone National Debtline from abroad on +44 121 227 4780 or use their webchat which is very good – you talk real debt advisers.
They can check first that your application from abroad is likely to be accepted. And secondly that bankruptcy is a good option for you.
Tips for simple & realistic budgeting
Missed a debt off your bankruptcy application?
How can your creditors find you?
R says
What effect would bankruptcy have on a working visa in USA?
Sara (Debt Camel) says
Sorry no idea. Try ex-pat bulletin boards to ask.
Kieron says
If I have been living abroad for 5 years but now have recently returned to the UK will I be eligible for bankruptcy?
Sara (Debt Camel) says
If it is clear that you have returned to the UK permanently (you have a job? a tenancy?) then probably. I suggest you talk to National Debtline https://www.nationaldebtline.org/ about the details of your situation. They may be able to suggest if waiting a few months would be better.
Hayley says
Hi I want to apply for bankruptcy and have just moved to China. I’m filling out the form for expenses and need to include saving for flights home for regular contact for my childs father is this likely to be accepted as an expense? Thanks
Sara (Debt Camel) says
Have you talked to a debt adviser about whether you are likely to be paying an IPA?
Hayley says
The job I moved to in China is an intern position so I am on very little salary (£500pm) but I have to save at least £100 a month to afford flights home for my daughter to have contact with her father which was part of our agreement to let us move abroad. The rest of my salary will be used for general living expenses. But I wanted to check whether savings for flights home in this way would be accepted as an expense. I would not have much other disposable income left for an IPA
Sara (Debt Camel) says
That is a very low income. I would be surprised if an IPA is imposed if you do not include savings for flights home in your expenses. I suggest you talk to National Debtline who you can call from abroad 0044 121 410 6200 about what you can put on the application forms. You are allowed reasonable amounts for clothes, dentists costs, a bit for holidays, child expenses etc. In practice, if you choose to spend almost nothing to pay for the flights, the Official Receiver won’t know and won’t care.
FannyA says
Hello, can you help as the national debt helpline say they cannot as I am overseas. I am pretty sure bankruptcy is my only option now but I am worried it will impact my partner. We live outside of EU and am aware of the rules and qualify. I know I will have to put down his income as he is the only earner at the moment, but will any subsequent interviews or checks have an affect on him or his visa at all please? I just don’t want anything negative to happen to him as this is not his fault?
Thank you
Fanny
Sara (Debt Camel) says
Sorry, I can’t possibly say anything about visas in another country. Have you looked on ex pat forums in your country? People there may have some idea.
FannyA says
Hi, thanks for the reply, yes I have looked, and can’t find anything. I just wanted to make sure that if I declare bankruptcy it has nothing to do with my partner? All they wish to know is his income right, it doesn’t have anything to do with whoever is your husband/wife/partner?
thanks
Sara (Debt Camel) says
the problem is, if he is worried about a visa, then you need to ask someone that is familiar with the visa process in that country and what the English insolvency Service does may not be relevant.
I am sorry, you may be worrying about nothing, but I have absolutely no idea.
nordic viking says
Here’s a topic I cannot find articles about.
A Danish Citizen, lives and works in Sweden for the past 12 months.
For the past 12 years he lived and worked in the UK on PAYE. He own nothing of value like home or a business.
There is big debt with the UK bank and credit card provider(same entity).
Can this debt be enforced in Sweden if he applies for bankruptcy in the UK, online from Sweden?
Sara (Debt Camel) says
I suggest you talk to National Debtline – you can do this from abroad: https://www.nationaldebtline.org/EW/information/abroad/Pages/living-outside-the-uk.aspx
VB says
Hi Sara, I contacted national debtline and citizens advice and they all tell me they can’t help since I don’t live in the UK. They also said they “just don’t know”. I moved to the US 2.5 years ago and have been self employed here since then. I wish to go bankrupt in the UK as I have UK credit card debt there I can’t afford. Will they argue my COMI is not in the UK? Do I need to list debts/creditors I have in the US as well and can it affect me over here? I have zero assets in either country.
Sara (Debt Camel) says
You have to list all your debts on a bankruptcy application.
No adviser in Britain is likely to be able to tell you the effect of going bankrupt in the UK on you in the USA.
Sov says
what are the ramifications of applying for bankruptcy in the UK prior to moving to an EU country now that we’ve officially left the EU? I am a UK citizen with EU residency. I had to flee domestic violence and had no money forcing me to use credit to put a roof over my head. I’m struggling.
Kathleen says
Hi. I’ve been told Banruptcy is my only option. As I’m outside the UK. I have no income at the moment and neither does my husband. Is the form easy to complete. I know the fee is £680. Will I have to pay anything else.
Sara (Debt Camel) says
can you say who gave you the advice about bankruptcy?
how are you living with no income?
are you likely to return to the UK?
Raymond David COOPER says
Hi I have lived and worked overseas in Turkey, Greece and Albania for the last 6 years and now am in North Cyprus. I have apartments effected with the Grenfell Cladding issue and am unable to sell the apartments. The Freeholders are demanding payments of up to £50000/ apartment to cover remedial works. My buy to let mortgages are expected to be paid back in June 2021 and the Mortgage company will not grant an extension. I am recently retired with little cash assets. What are my options. I am at my tethers end with worry about all of this.
Weatherman says
Hi Raymond
What a nightmare situation. I don’t think there are any easy answers; I would speak to National Debtline ASAP, given that your BTL mortgages end in June: +44 121 227 4780. You can call them even if you’re outside the UK.
Ramona says
Hi Sara,
I have a 4 unsecured loans of around £16k, and a monthly payment of £50 at HMRC,. We’re thinking of going back to our country in EU. I have never missed a payment, however I will not afford paying the dept after I move, even if I get a decent job there.
Question is, if I go bankrupt does it affect my apartment, as it is a joint propriety?
Thank you
Sara (Debt Camel) says
Are you buying the flat or renting it?
Ramona says
It is bought.
Thanks
Sara (Debt Camel) says
if you own a property or part of a property in England and go bankrupt it will be sold to pay your creditors. This does not sound like a good options for you – I suggest you take debt advice on your options – call National Debtline on 0808 808 4000
Ramona says
The propriety is not in England
Sara (Debt Camel) says
nevertheless, if you own any property it will need to be sold. Please talk to national Debtline about your options,
Ramona says
Thank you for the update.
What other option do I have that won’t impact my husband or the propriety?
Just to inform you that I intentioned to start an IVA with PayPlan, however, they have a monthly fee and within the 5 years it will cover around £14k, meanwhile if I continue to pay as usual, my dept will be paid off within 2 years.
Thank you in advance
Sara (Debt Camel) says
Well you can’t afford to pay off as usual, can you.
How much are Payplan suggesting you pay a month?
Are you sure at the moment what you will be able to pay when you are back home, or does that depend on getting a job and what the living costs will be? IVAs are inflexible and a lot of them fail, leaving you back with the debts.
Do you intend to return to the UK?
Ramona says
They offered £251 per month which will be unaffordable for me after I move, as I will need to enrol my daughter to a private school with a 500 euros monthly fee.
I do not intend to come back in UK.
Thanks
Sara (Debt Camel) says
Well you cannot agree to an IVA which you know will very soon be unaffordable.
One option would be to make a token payment off or 31 a month to each debt. But I am not suggesting that – talk to National Debtline who can help you go through all your options and the pros and cons.