Go bankrupt from outside UK or not??

[ShazzaB123]

Help, I left UK in 2009 so have been gone just over one year. I left debts of approx £15,000 with 8 different companies. I thought that I would do the responsible thing and advise all my creditors that I was leaving the country and that I would contact them again when I was in a better position to start re-payments when I was settled with a job etc. After 6 months I wrote to them all advising that the work was seasonal and that 6 months wages needs to last me 12 months so was not in a position to offer any payment. The DCA’s continued to write to my previous address requesting payment as I did not and do not want to give them my new address. Firstly I can’t deal with the stress I get from receiving debt letters, and secondly that the postal service is not reliable so it is very likely that I would not receive them any way. I have joint ownership in a house that is mortgaged (but not a buy-to-let mortgage) in UK with hardly any equity. The house is rented to tenants who are friends and are happy to go along with whatever decisions I make regarding the house. I am looking to put the house on the market any day now as I think my best bet is to sell it then go bankrupt.

I have recently written again to the creditors who have once more ignored my request for them to contact me by email so I rang them all to try once and for all to get something sorted out. They all refused to discuss anything with me until I was prepared to give them an address either in UK or my new country (which I did not do) and so the debt will not be addressed. I am not happy about leaving it with no arrangement in place and do want to address the issue somehow.

My main question is – should I sell the house before considering bankruptcy, or should I carry on paying the mortgage which has been reduced for 3 months. The rent still does not cover the mortgage payments and I need to find £75 per month to top it up. After 3 months this goes back up to me having to find an extra £174 per month which is impossible.

Also, as I am out of the UK can I go bankrupt, is it the best option and if not, how can I address these other debts?

Sorry this is very wordy but I am unable to explain it in less.:-|

[cerberusalert]

If outside the UK, you can file for bankruptcy either by returning and doing this yourself, these cases are heard in London in the High Court, or having a representative do this for you. If you get a company to do it for you they charge around £700 on top of the bankruptcy fees.

 

See; http://www.clearinsolvency.co.uk/bankrupt_from_abroad.php

 

What type of debts are they & roughly how long have you had the a/cs?

Edited April 6, 2010 by cerberusalert

[ShazzaB123]

The debts vary from small catalogue debts of £100 or so, to a car hire purchase of £6000 and I will likely incur mortgage debt too in the near future when I cant afford to pay the full mortgage payments. I was paying the debts, or bills as they were then up until April 2009 when I moved abroad.

[cerberusalert]

The smaller debts I wouldn't worry about, it wouldn't be worthwhile them trying to take enforcement action outside the UK, technically the larger ones can still be pusued in the EU because of reciprocal agreements see; http://www.consumeractiongroup.co.uk/forum/overseas-debt-overseas-account/250889-can-i-sued-overseas.html

 

You say you are considering selling your property, would there be enough left over to pay the larger debts or are you looking at a shortfall?

[ShazzaB123]

I think I would be very lucky to sell the house without coming out of it still owing the mortgage company that is if the house were to be sold now. I can pay the mortgage payments until end June then the payments go back up and I will not be able to pay. Do I pay what I can ei the rent from the property, or do I simply not pay them anything then I can keep the rent to either pay toward other debts. I understand that the house will eventually be repossessed but if I am not making anything on it then what is the point in keeping up the payments? So, this begs the question, if it will be reposessed anyway, is there any point in actually trying to sell it? Thanks for the advice re the smaller amounts.

[cerberusalert]

You're stuck between a rock and a hard place really. You could stop payments and hope that a creditor will bankrupt you which would save you the cost involved. Eventually the mortgage company will foreclose and apply for repossession & when they sell the house you will be responsible for the shortfall which they will chase you for unless you are bankrupted.

 

The repossession would take a few months so if you were to withold all your payments to your creditors you could then afford to apply for bankruptcy yourself, at least in that way you know that no-one can come chasing after you at a later date & after a year you will be clear although your credit will be trashed for six years in the UK.

 

As I said earlier there are companies that will act on your behalf for a fee, but at least you wouldn't have to return to the UK or deal with the paperwork.