Caribbean Property & Bankruptcy

RacineFan

Thank you JCS1.

Sorry to be a pain, but who or what is the IP? [Insolvency Proceedings?]

... and, contrary to my understanding of the above, you believe they will have the authority to deal with the asset?

JCS1

Sorry, IP is an Insolvency Practioner.

When a BR Order is made, the OR becomes Receiver and Manager. If there are assets, then they will call a meeting of creditors with the view to appointing an IP to become Trustee. If no assets, notice of no meeting will be issued and then the OR becomes Trustee.

Not sure on the jurisdiction issues, but suspect the OR will pass to an IP to deal with.

More from the technical manual:

40.141 Foreign Assets
The United Kingdom insolvency law has an extraterritorial approach to property whereby all property belonging to the debtor, wherever situated, is covered by the Insolvency Act 1986. The liquidator is entitled to take control of all property of a company in liquidation and the property of a bankrupt, (with exceptions), vests in the trustee. Therefore under English law the liquidator or trustee has the power to deal with all the assets. Most other countries have a similar universalist approach but in practice the law of the country in which the property is situated retains control. Usually some positive step needs to be taken locally in addition to the appointment of the liquidator or trustee. Often registration of security is required in accordance with local law and practice or some form of court order is needed recognising the appointment as having some local effect, for example the United States Bankruptcy Code has a specific procedure for recognition of a foreign representative in ancillary proceedings.
The EC Regulation on Insolvency Proceedings (see paragraph 40.136) has significantly restricted the universalist approach within the European Union, particularly when there are concurrent insolvency proceedings.

And more details here:

http://www.insolvency.gov.uk/freedomofinformation/technical/foreignissues.htm

peachyprice

RacineFan wrote: »

Peachy

That's some terrific information. I hadn't found that - Thank You

I'm no expert on legal jargon but from what I understand of this then a property in the Dominican Republic is unlikely to form part of my assets and is very unlikely to have any proceedings started against it, especially if I don't give my consent.

Can anyone confirm if this a correct interpretation?

No, I don't read that as the case at all sorry

All assets, no matter where they are will be considered as an asset.
but the OR/an IP should weigh up whether it's worth pursuing.

RacineFan

Some great information coming forward but I fear I'm no better off understanding the implications:

From what I gather with regards to Cross border insolvency outside of UNCITRAL Model Law and non EU assets, with direct regards to the Dominican Republic, then it would appear to me (although I'm happy to accept that my interpretation may be wrong - Peachy) that there is no official juristiction or agreements in place with the DR that would make the property a liable asset.

However, as with any good policy, there's always a general coverall which leaves an alternative avenue open. This would seem to be para 40.141 highlghted by JCS1 - Foreign Assets.

I feel I'm none the wiser now!

I can only summise that although there appears to be is no direct legislation covering legal juristiction or cross border agreements, it seems to come down to a 'gamble' as to whether the DR authorities will co-operate and assist/allow UK authorities access, or indeed whether the OR/IP will deem it a viable pursuit (probably, I would guess: my share is roughly equal to my outstanding debt of £65K).

It's never black and white is it!

Very worrying times for us and having to make a life decision on a 'gamble' is even more concerning.


(Note: Just for completeness, I know that's a lot of debt but it's not as irresponsible as it sounds; there were some very valid reasons for this but they aren't really relevant and I didn't want to bore you all! At the end of the day that's the position we find ourselves in and have to deal with it - we weren't after sympathy!).

peachyprice

RacineFan wrote: »

I can only summise that although there appears to be is no direct legislation covering legal juristiction or cross border agreements, it seems to come down to a 'gamble' as to whether the DR authorities will co-operate and assist/allow UK authorities access, or indeed whether the OR/IP will deem it a viable pursuit (probably, I would guess: my share is roughly equal to my outstanding debt of £65K).

Yes, I think this is a fair summary, the authorities in the Dominican Republic are not bound to co-operate with the OR/IP but that's not to say they won't, and the lack of a cross-border agreement does not offer you any protection. For £65k it's fair to say the OR will pursue every available avenue.

JCS1

RacineFan wrote: »

Some great information coming forward but I fear I'm no better off understanding the implications:

From what I gather with regards to Cross border insolvency outside of UNCITRAL Model Law and non EU assets, with direct regards to the Dominican Republic, then it would appear to me (although I'm happy to accept that my interpretation may be wrong - Peachy) that there is no official juristiction or agreements in place with the DR that would make the property a liable asset.

However, as with any good policy, there's always a general coverall which leaves an alternative avenue open. This would seem to be para 40.141 highlghted by JCS1 - Foreign Assets.

I feel I'm none the wiser now!

I can only summise that although there appears to be is no direct legislation covering legal juristiction or cross border agreements, it seems to come down to a 'gamble' as to whether the DR authorities will co-operate and assist/allow UK authorities access, or indeed whether the OR/IP will deem it a viable pursuit (probably, I would guess: my share is roughly equal to my outstanding debt of £65K).

It's never black and white is it!

Very worrying times for us and having to make a life decision on a 'gamble' is even more concerning.


(Note: Just for completeness, I know that's a lot of debt but it's not as irresponsible as it sounds; there were some very valid reasons for this but they aren't really relevant and I didn't want to bore you all! At the end of the day that's the position we find ourselves in and have to deal with it - we weren't after sympathy!).

Think the bit I've highlighted above sums it up. Given the amount, the Trustee will try and realise the property, but there is no guarnatee that they will be able to.

debtinfo

Hi to sum it up a bit, There is no Automatic agreement with the dominican republic. What this means in practice is that if you had debts over there then they would take precedence in their own insolvency proceedings, The IP would have to apply to their courts to take possestion of the asset and this is likely to be lengthy and costly but with no mortgage it may be worthwhile. You could refuse to help the OR/IP but this could land you with sanctions over here for non co-operation.