Considering Bankruptcy, but also want to emigrate

Chilly_Breeze

Hi all,

I posted in the "Ask a step change" thread as well but maybe someone else can give me some advice here.

So, I used to work an office job that I hated, for years, but it paid ok and I pretty much got stuck in the grind like everyone tends to do. I was depressed and just generally miserable, and during this time I amassed some debt (totaling around £17k). After six and a half years of this existence I took redundancy and used the money to move away to Canada, where I stayed for two years and was all of a sudden completely happy and content, finding a place I belonged and completely getting free of my depression. The problem is now that while I was away in Canada, although I was happier than I have ever been before, I was not earning very much money at all, so I ran out of money and couldn't afford to make any payments (I was literally living pay cheque to pay cheque). So, stupidly, I buried my head in the sand and just didn't deal with my debts at all, and now, being back, unemployed, in the UK I'm facing the problem of how to deal with this.

After my experience in Canada I have finally, at the age of 30, found where I want to be and what I want to do, but I am completely terrified that this past debt has ruined it all for me. I have no assets and no savings, and I also have no qualifications that would get me any kind of decent job here, so I just don't see how I can pay off this debt without spending years and years back in the hole I was in before. The thought of being stuck here again makes me actually feel sick, and I know that it will ruin me.

I spoke briefly to Citizen's Advice and they mentioned a DRO or BR, but they can't do anything really until I have an income they can report and figure out etc. (I'm looking for work now).

For the first time ever I actually had a life plan, which was to move to Australia, where I can earn more, get a qualification and save more, then go to New Zealand and work on getting permanent residency there. The big problem is time for me, now, because the age cut off for getting work permits is 31, meaning that I need to do some creative timing things to get visas for both, but I would have time if I go to Australia before my birthday in June, and then NZ a bit less than a year later.

My issue is not with repaying the debt, it's WHERE I repay it from. I really can't face the idea of being trapped in England for years and losing my chance to move to this place that I want to be, but I just can't see a way of doing it, and I'm freaking out. So, after all that, I suppose my question is, would it be possible for me to go bankrupt, then if I can secure a job in Australia or New Zealand, move over there while I'm still bankrupt? Even if I had to start repaying the debt again and it took me a decade to repay, I would be okay because at least I would be in the place that makes me happy, and I don't care about not being able to get any credit again because I have absolutely no intention of ever doing so again (in the years since I moved away I have had no credit at all and it's been FAR preferable).

Even if I went bankrupt and stuck it out for the 12 months, I might be able to still make it to New Zealand at least, but it's the lack of the ability to save up the money to leave that might ruin it for me.

I spent the first 28 years of my life with no direction and now that I finally have one, I can't describe what it will do to me if I get stuck here because of this. There has to be something I can do. The way I figure, at the absolute latest, I have until around April 2017 to get to New Zealand (if I skip the Australia stage). If it's not possible to move away while bankrupt, is it possible to go that route, then have it all done and finished by that date? Like, does it work that you're pretty much owned by the courts, without the ability to save up any money for 12 months, then you're free of it all?

National_Debtline

Hi Chilly Breeze


DRO/bankruptcy have no direct effect on your freedom of movement. You must simply ensure that you make the Insolvency Service/Official Receiver aware of any change in your contact details while under their supervision, whether within the UK or overseas.


I would suggest that you research the potential effects of any UK insolvency proceedings on an application for Australian/NZ work permits and residency visas. Others here may be able to advise from personal experience but in the meantime I would enquire with the relevant embassies. It's probably worth checking out some of the expat/emigration forums, too.


Have you considered simply focusing on the emigration process for now and then looking at the question of how/if you deal with the UK debts once that is safely negotiated?


Dennis
@natdebtline

Chilly_Breeze

Thanks for the response. I have looked into that process already and as far as I can see it has pretty much no impact on getting visas. The only issue would be for people who go bankrupt repeatedly, they might get refused on the basis of bad character, or if you're going over as a business person, but this would be my first and only time so I don't think that would be a problem.

So if I went bankrupt, then got a job in Australia, for example, it would be perfectly okay for me to do it as long as I stay in contact with the OR and keep them updated on my situation?

I'm going to start the visa process as soon as I can but I've been really worried that I wouldn't be able to find a way to deal with it and still have the freedom to move to another country.

National_Debtline

Chilly_Breeze wrote: »

So if I went bankrupt, then got a job in Australia, for example, it would be perfectly okay for me to do it as long as I stay in contact with the OR and keep them updated on my situation?

That would be fine in theory. The OR could delay your discharge from bankruptcy if they felt you were being uncooperative, but that would not hinge on whether you were here or overseas - simply cooperating with any requests for information would be adequate.


Dennis
@natdebtline