Emigration problem

[Rconti]

Hi there,

 

I'm from Northern Ireland and I expect to be made redundant in about six months time. The chances of me finding work here in my field are minimal, so my wife and I have made plans to emigrate to New Zealand, where my brother now lives, and where there is plenty of work. To that end, we have sold some assets we currently own and have realised about £28,000. We have had to use about £18,000 to repay our unsecured debts. The remaining £10,000 (and anything we can save over the next six months) will be used to pay an emigration specialist to process our residency application, pay for our flights (we have three children) and give us a deposit for a flat rental when we arrive. So when we arrive in NZ we will literally only have the clothes on our backs (and in our suitcases!).

 

So we are currently debt free except for our house, which has an outstanding mortgage of £170,000, and therein lies the problem. The house is in serious negative equity (it would probably sell for about £110,000) and we won't be able to keep up mortgage payments on it and live in New Zealand - the interest payments are about £700 per month, and rates are about £50 - if we could rent it we would probably only get about £350 to £400 per month for it.

 

In an ideal world we would like to do this:

 

1) Move to New Zealand and tell the bank that we want them to repossess our house.

 

2) I hold solid equity in my parents' home of about £25,000 - there is no mortgage on that property. It's a 20% share which can't be realised until my parents die and my siblings sell the house then. I would like to offer the bank that share. They obviously can't cash it in, but it is a solid asset which will grow because the market has bottomed out where my parents live.

 

3) I would also offer them £200 per month (about NZ$400) payable for 20 years, which would represent another £50,000 payment, bringing the total offer to the bank to £75,000 (I know there are interest and inflationary issues, but I'm just trying to work this out at the moment). I have checked the cost of living in NZ on my expected salary very carefully and it's the figure that keeps coming back.

 

I feel really caught between a rock and a hard place. I'm worried that the bank will reject my proposal outright (it is very unorthodox) and demand that I pay up the full mortgage or they will force bankruptcy upon me. If they do that could I be open to a charge of asset disposal and fraud for spending the £10,000 on emigration advice, flights and set up costs to get to New Zealand? Do you think a UK judge would see forced bankruptcy in light of my offer to be harsh?

 

Even if we stay in the UK we will be probably be forced to give up the house and go bankrupt eventually because if I have to sign on the dole I will barely be able to afford to pay them anything.

 

Many thanks in advance for any help!

[Rconti]

Tricky one, innit?

 

Maybe someone could help with this - if we fly out to New Zealand then tell our mortgage company we can't afford repayments any more and we want them to repossess, can they do anything at all that might lead to us being deported?

 

Tbh, we really don't care if we are made bankrupt in the UK (or NZ for that matter).

 

Also, if a UK company (or a NZ company if the debts are sold) forces bankruptcy on us, can we be prosecuted in the UK for disposal of assets for spending a lot of money to get out to NZ.

 

We aim to keep up all repayments until we get arrive in NZ.

[maroondevo52]

Hello and Welcome,

 

I've asked another Mod to have a look at your thread, he's not on-line at the moment but should be later today, hopefully he'll be able to help you.

 

Regards.

 

Scott.

[cerberusalert]

I feel really caught between a rock and a hard place. I'm worried that the bank will reject my proposal outright (it is very unorthodox) and demand that I pay up the full mortgage or they will force bankruptcy upon me. If they do that could I be open to a charge of asset disposal and fraud for spending the £10,000 on emigration advice, flights and set up costs to get to New Zealand? Do you think a UK judge would see forced bankruptcy in light of my offer to be harsh?

 

TBH I would think bankruptcy would be your best option after you have emigrated, in that way you can start a new life without having to live through the next two or three decades with debt hanging around your neck. You can apply to do this anytime within the first three years after you have emigrated, see; http://www.consumeractiongroup.co.uk/forum/showthread.php?255040-Declaring-Bankruptcy-In-The-UK-If-You-Now-Live-Abroad

 

I doubt the fact that you are using what assets you have now in order to move will enter into it, the majority of the monies are being used to settle your debts & the rest is being used to hopefully improve your present economic situation.

[Rconti]

Thanks for the replies!

 

I think you are right - thanks for putting my mind at rest. If the OR did see my emigration costs as disposal of assets could I be deported? Sorry if the question seems silly! I just want to know that once we get in to NZ nothing will be able to pull us out. Our worst nightmare would be to have to come back to the UK.

 

Also - someone said to me that if I go bankrupt and my creditors take my share of my parents property (£25,000 - no mortage on the house) they will try to sell it to my four brothers and sisters. I know for a fact they don't have the cash - so what would happen then? Could the trustee somehow force my parents' house on to the market to "free up" the cash value they are owed, or would my parents right to live in the house unhindered trump the trustee's wishes?

[cerberusalert]

If the OR did see my emigration costs as disposal of assets could I be deported?

I doubt very much whether he would see it that way. As I said, you have sold up and moved abroad to better yourselves if a year or two down the line you decide that BR is the most sensible solution whatever assets you used to fund the emigration is neither here nor there.

Also - someone said to me that if I go bankrupt and my creditors take my share of my parents property (£25,000 - no mortage on the house) they will try to sell it to my four brothers and sisters. I know for a fact they don't have the cash - so what would happen then? Could the trustee somehow force my parents' house on to the market to "free up" the cash value they are owed, or would my parents right to live in the house unhindered trump the trustee's wishes?

I can't answer that as I've no knowledge of a similar situation. Hopefully someone else will be able to.

[Rconti]

Thanks again!

 

I've been hunting round and I've come across "charging orders". Could that be a solution? I have no problem being completely straight up and handing my share in the property over to creditors - I just need to know that they can't sell the house against my parents' wishes.

[cerberusalert]

I would think it would depend on what the mortgage shortfall was as to whether they'd accept a voluntary CO.