Living in London with Irish debt and wanting to go bankrupt

If you are watching this video on youtube or reading my blog, the chances are that you are Irish living in London with a pile of Irish debt, or you are thinking about moving to our capital for work purposes and wondering if you can go bankrupt here at the same time.

Many thousands of Irish come to London live and work each year. A small percentage of them also use the opportunity to try to deal with property losses they have sustained since the collapse in the Irish economy over the last four years.

Whilst it is easy to live and work in London, and hence establish your centre of main interest there, it is not quite so easy to go bankrupt.

A number of high profile Irish Nationals have tried to go bankrupt in the UK using the Royal Courts and some have found out how time consuming it can be.

In London an application for bankruptcy is begun in the Rolls Building on Fetter Lane if you owe in excess of £100,000. Ordinarily, if your debt is all UK based, the bankruptcy registrars would review your petition and make an order without even having to see the petitioner, all on the same day.

Where the debt is overseas, the Judge will not make a bankruptcy order on the same day as the petition is filed. Without exception now they will instead make an order that the petitioner file a witness statement in which they set out all the evidence upon which they wish to rely proving that their centre of main interest is in the UK.

In essence this means all evidence of residency such as rent agreements, utility bills, wage slips and bank statements showing wages going in expenditure coming out. The court will also want to know what ties there still are with Ireland. The cleaner the break the better chances of the Judge granting the order. This hearing only takes 15 minutes, but it can be quite detailed and will in any event be listed at least two months after you first filed your papers. The court will also require you to tell your creditors of the hearing, ensuring that they have a chance to attend if they so wish. I have done a number of these hearings and never once has a creditor attended.

Far better than to petition in London, would be to live on the periphery of the capital and commute in to work. Places like Croydon and Kingston Upon Thames and Luton will deal with the petition on the day it is issued, without the need to file a witness statement in support.

The practices of dealing with Irish bankruptcy petitions is changing and will continue to change. You cannot assume that because you thought you knew how the courts were treating Irish Bankruptcy petitions, the same still holds true.

Call me on 07837 60820 for the very latest news on how courts in your areas are treating Irish Bankruptcy.   

New Year and a new start - going bankrupt in the UK

A New Year has dawned and for many it will herald a chance for a new start. In Ireland I know that many families will be facing up to another year of debt and depreciation and for lots they will be seeking to move across to the UK to set up a new life.

For those who come to the UK and establish themselves, they may in time turn their thoughts to getting rid of their debts and declare bankruptcy. Indeed I know of many who have decided to move to England simply for the purpose of going bankrupt, which is what they are entitled to do.

If you have reached the New Year and decided that a new start is for you then you need to be absolutely certain that the steps you take will enable you to declare bankruptcy in due course. You will have to establish the UK as your centre of interest. That means that you will if possible be expected to get a job and support yourself as benefits will not be available.

As well as getting a job and a residence you should also establish a bank account. That account will need to be used on a regular basis as the Official Receiver will expect to see transactions taking place as evidence of constant living in the UK.

When you have been in the UK for up to six months you will be able if you wish to apply to the local county court that has jurisdiction for bankruptcy. Each county court has a different way of approaching bankruptcy. It is best to speak to the court and ask them their procedure. They may send you a pack for bankruptcy, which will include a petition and a statement of affairs which you will need to complete.

When this is done you will need to attend court with three copies of each document. You will also need a fee of £700 which is part court fee and part official receiver’s deposit. The court staff will process the papers and then you will be taken to see the Judge. If the Judge is satisfied that you are entitled to bankruptcy, and he will check that you have established your centre of main interest here, he will grant the bankruptcy order.

Once the order is made the affairs will be handled by the Official Receiver. His job will be to contact the creditors and realise any assets for the benefit of creditors. The Official Receiver will contact you within 24 hours to establish contact. In as little as three weeks he will conduct an interview with you and discuss the statement of affairs.

If no issues arise then the bankruptcy will automatically come to an end in just 12 months.

   

What to expect when you go to court for a bankruptcy hearing

If you are one of the millions who have been struggling ith debt over the last three years then you may have considered a number of debt solutions.

Perhaps you have tried something as simple as a debt management plan, either set up yourself or through a debt management company. For others, it may have been an IVA put in place for you by one of the numerous providers who you can see advertising on TV and in the papers and across the web. In have helped out many people who have tried an IVA but found that they cannot meet the monthly contributions.

If you have tried these solutions and found they didn’t work, or if you have realised that your debt problems need a quick but effective solution, then bankruptcy may be the appropriate solution for you.

The bankruptcy experience can be daunting if you have never been involved in producing official paperwork, or been at the county court before.

You can get help with the bankruptcy process from organisations such as the CAB or ourselves. You can get your bankruptcy pack from me, the CAB or the court.

The court clerks are very knowledgeable and do their best to put you at ease.

When you begin the bankruptcy process you need to have all your information to hand. This would be details of your income and expenditure and your assets and liabilities. This will make the process of completing your statement of affairs. Which is 28 pages long, an easier process.

If you can complete your paperwork yourself, you need to take the statement  of affairs and the petition in triplicate to your court. You will also need a fee of £700 (unless you qualify for a remission). That fee needs to be in cash.

The court clerk will process your papers and check, (a) that you at the correct court, (b) your paperwork is in order and (c) that you have taken appropriate advice. If the clerk is satisfied that all is in order, then they will process your papers and give you a court number. They will take your payment, and advise you where to wait to see the District Judge.

That part of the process should take no more than 30 minutes.

It may be some time before you can get to see the Judge. It mainly depends on when he can fit you in between all his other scheduled work. In some courts the process is structured to enable the Judge to see you before he starts any of the rest of his days work.

The Judge will be concerned primarily in ascertaining that you have taken proper advice and you appreciate what the effects of bankruptcy are. He will check to see that your debts levels are appropriate for bankruptcy. He will make an order with a specific time quoted. This will mean that at that moment 12 months hence you will be automatically discharged.

You will be free to leave they court after the order has been made.