Question: Have > GBP 250K unsecured debt as a result of divorce 2 years ago. Entered into IVA - but now in process of a variation order as HMRC has made a claim. Now live in the USA - no assets - employed but in rented.

Can I go bankrupt in the UK form the USA? If so, will they try and take some of my US $ earnings in my current job, or will they simply make me bankrupt in the UK and that will be the end of it? Thanks


Answer: Yes, you can go bankrupt in the UK from the USA and there are some rules regarding this.

If you have been outside the UK for less than three (3) years, you can have a representative do this for you in the High Court in London. Our Foreign Bankruptcy Assistance Service can do this for you.

If you have been outside the UK for over three (3) years, you can still go bankrupt in the UK, but you will need to return to do this yourself.

As for paying into a bankruptcy, this doesn't matter where you live, just if you have a surplus of income to do so. If you have a surplus of income after your allowed living expenses, you can be required to pay into a bankruptcy, regardless of where you live.

All the same rules apply as you are going bankrupt in the UK, you just live elsewhere.

Regards,

Jon