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Can I Sell My House And Move Before Going Bankrupt?
Question:
Hi, i am a home owner and currently have an outstanding unsecured loan of around £22000, this was a mixture of clearing credit cards and renovating our house. Now we are moving to the usa and cant afford realistically to go without our 10% deposit back from when we sell. So basically im asking wether my debt will dissappear or they will come calling for my debt in the future sometime, or would it be advised to sell my house, get my assets to america with my wife and declare myself bankrupt or is that ilegal?
Answer:
You can sell the property and move to America, as to if your creditors will chase you there for payment and the debt, I cannot say; however, more and more debts are sold to collection agencies outside the UK and people are chased for payment.
If you were to sell the property and go bankrupt, the sale of the property would be looked at and any proceeds would be questioned as to what you had done with them. If you try to hide any assets or proceeds from the sale, this can be seen as fraud or hiding an asset and the receiver in your bankruptcy could look at placing a restriction order against you which would keep you under the restrictions of bankruptcy longer than the usual 12 months.
Thank you for letting me help you.
Jon
If you have a bankruptcy question you’d like to ask, just ask using this online form. All help is free.
Source: Can I Sell My House And Move Before Going Bankrupt?