Living Overseas and Possible UK Bankruptcy

[Nicoblue]

Hi There, My first Post please be gentle !!

 

I am seeking advice...and not Judgement here, so let me fill you in.

 

I moved to Australia some 15 months ago now, initially to set up a business consultancy, however this has not really happened through no fault of mine - Long story but there you go !

 

However I am working but not earning enough to cover payments of my UK Debts, or at least the minimum amounts. I owe the usual suspects HSBC, Egg, MBNA, Mint.....

 

I have contacted all of my creditors, and advised them of my move, and in fact sent them the usual budget sheets, but they will not accept my reduced payments....MBNA - Saying "We will find you"

 

HSBC - Have hust sent a letter demanding my debt be paid in Full (not my Branch, but the National call centre branch I think !!)

 

Let me make it clear I havent Run away from my debts, and before I came over to Oz, My house was for Sale and I would have had more than enough to Pay them Back.

 

To complicate matters further - My house in the UK has still not Sold, and the equity in it has reduced dramatically, couple that with my downturn in income, hence the Financial problems I have.

 

I am contemplating going Bankrupt in the UK, but am worried what effect that will have on my standing in Australia.

 

Also I am fearful of giving creditors my adress in Australia for fear of them sending collection agencies around (I do have a Post Box though !!) - I have my mail re-directed from the UK to my Postbox as well.

 

I have tried to be breif - in the Hope that Some knowledgeable members out there can help me !! - Please

[42man]

Hi Nico....were not here to judge you...you are amongst others who have been/are in similar situations as yourself...

 

Can you just give an overview what each debt is please ? (don't be specific with numbers though)....

 

Can you also say when the last payment was made to each too ?

[Nicoblue]

Debts are :

 

HSBC Bank Loan - Last Payment July 08

HSBC Credit Card - Last Payment Sept 08

Egg Loan - Last Payment August 08

Egg Card - Last Payment Sept 08

MBNA Credit Card - Last Payment Sept 08

Lloyds Credit Card - Last Payment Sept 08 - Agreed Payments GBP 50.00 per month

Mint Card - Last Payment Oct 08 - Agreed Payments GBP 1.00 per month

 

HSBC have demanded Payment ib Full or they will take Legal Action !!

 

It is not that easy at the moment - any advice would be more than welcome !

 

 

 

Hi Nico....were not here to judge you...you are amongst others who have been/are in similar situations as yourself...

 

Can you just give an overview what each debt is please ? (don't be specific with numbers though)....

 

Can you also say when the last payment was made to each too ?

[Nicoblue]

Hi Nico, not too sure if you are still looking for help on this? The good news is that you can declare yourself bankrupt from Australia without returing to the UK. I have dealt with various clients living in Australia where debts have been transferred overseas and when things get to this point the overall situation does intensify. Normally if you declare bankruptcy in the UK while living in Australia it does not affect your Credit rating in Australia. From the brief details you have supplied it sounds as though it could be your best option, especially if your property is now in negative equity. Hope this helps, Michael

 

Many Thanks for your response Michael - My property here in Australia is in Joint Names with my wife - and because of recent downturn in market I reckon There would be no equity - at the best $15k !!

 

I was told that debts dont get transferred overseas (Australia), I have written to all my creditors with offer of payments well oover a month ago now, but have not heard anything.

 

I dont have any property in the UK at all by the way.

 

Any further help/advise you can give would be most welcome.

[Nicoblue]

Hi Nico, is the debt in your name or joint? If it is only in your name the whole of the equity would not be involved if you were to declare yourself bankrupt. If the debt is in your name only your half of the equity is involved and if it is a max of $7500 it would not be worth the Official Receiver doing anything. To me your property sounds quite safe, thanks Michael

 

Michael,

 

My Unsecured Debts are in my name only - The property is in Joint Names with my wife.

 

Have PMD you also.

[wozer72]

Hi , my first post on this site and would really really appreciate a bit of advice, im really confused. Myself and my wife are currently awaiting our visa for Australia and anticipate moving " Down Under " in May. Problem is our house here in the U.K and my debts as i will endeavour to explain . I am currently in a D.M.P. with a debt management company paying £188 p/m . In addition to this i also pay a personal loan , unsecured to Northern Rock for £239 p/m. I was told to keep paying the N. Rock loan as normal as opposed to combining it with the D.M.P as my mortgage is with Northern Rock . I believe N.Rock have very aggressive tactics on defaulters and the debt management company advised it could cause a few problems for me with the fact my mortgage is with them too, i.e . they could get what i think is a " Charging Order etc. The debts are all in my name ( all unsecured ) other than my house which is in joint names with my wife. We have been trying to sell our house since last April , dropping the price by £20000 but still no takers. The way things are , we would be lucky to break even and are practically in Negative Equity. I was thinking of eventually going "Bankrupt " in the U.K. once i get to Oz. But heres my dilema , , what do i do with the house . I doubt i will sell it between now and May. We,re going to Oz initially without jobs , i cant afford to pay £239 , £188 and i pay £200 to the C.S.A. , £627 p/m total. My priority would have to be the C.S.A debt , but unless i find a well paid jod out there pretty fast how am i going to possibly find the rest. Also my house , my wife wants to rent it out which we could but what about my debts etc, especially if i cant make the payments from Oz . With a view to eventually declaring myself Bankrupt how can i rent my house out , also i do not want my wife to be affected by this but her name is on the mortgage.:? What should i do , put it in my name , depart these shores and when i can afford it " Go Bankrupt " from Oz and hand the keys back ? Or put it in my wifes name , if i can , and rent it out ? ( But there is a large mortgage on it and nearly no equity . ). I really dont know what to do , the ideal solution would have been to sell it and when im established in a job in Oz go bankrupt , PLEASE HELP !

[charliebubs]

I'm no expert on this, but I would suggest that if you are in negative equity and moving to Aus the best thing to do would be to literally hand the house over to your lender when you leave.

 

As for the other debts, if it is true that bankruptcy in the UK won't affect you in Aus, I would guess that it's your best option.

 

I lived in Aus for 2 years and rented out my house here. It was tough because the rental income didn't cover my mortgage and so I was sending money back to the UK each month to make ends meet. In Aussie dollars that's a killer!!

 

I'd love to move back to Aus again and am in the same position as you really, with debts and a house with negative equity. I think I would have to hand my house to the bank. It wouldn't sell in today's market, the rental wouldn't cover the mortgage and I don't think there are any other options really.

 

Good luck with whatever you decide.

 

Keep us posted.

[wozer72]

Hi Wozer, it sounds like quite a complex situation but there could be a way forward. Is the Northern Rock loan (the unsecured one) in joint names? Also roughly how much debt is the DM plan covering?

Hi Michael , Thanks for getting back to me so promptly , yes the Northern rock loan is unsecured and solely in my name and the DM plan is covering roughly £50,000 . The only joint debt we have together is the house. Any suggestions , greatly appreciated , Many thanks, Wozzer.