Declaring Bankruptcy while abroad!

fallout_2

I've been living in Spain for the last 2 years and own a modest property outright here. But it's no luxury villa on the Costas, it's in rural inland Spain and it's value would be no more than £60K.
Anyway, I have credit card debts back in the UK to the tune of around £40K. I've never missed a payment on any of them but I've now reached the point where it's impossible for me to continue paying
I have a wife and two teenage children, and I'm legally self employed here, so pay taxes etc. However, it's rare for me to earn more than about £300-£400 a month, so it's an uphill struggle. I had to take out a loan for £6K from the bank here a few months ago, but most of that's gone trying to keep up the payments on the UK cards.
I don't ever see a situation where I'm going to be able to clear these UK debts without literally making us homeless. I've heard of Brits here absconding from their debts but it's not a course of action I'd consider.
If I'd cleared the debts when we left Britain we'd never have been able to buy a house because I wouldn't have got a mortgage.
Re-mortgage the house now? I don't earn enough to qualify.
Is UK bankruptcy the answer? Could they take the house here off me.....because I can't do anything that would jeopardise my family's security.
Any advice or suggestions greatly appreciated.

inmypocketnottheirs

I think the official receiver would be more than interested in your asset in Spain. He would more than likely take the view that a large percentage of your UK debt was incurred through the property in Spain, either it's aquisition or it's upkeep. The OR has the power to go back six years to ascertain if anything that has been done has been prejudicial to any of your creditors.

Do you ever expect to come back to the UK?

You may be best contacting all your creditors to see if you can reduce your payments.

I fear that matters may be further complicated if you have been using credit for the 2 years you have been in Spain, thus subsidising your lifestyle at the expense of your creditors. This leads me to think that the OR would definately want to re-appropriate your property in Spain.

I am sure this is not what you wanted to hear, but hope that you can find a workable way forward.

HTH

fallout_2

Thanks for the reply. The house here wasn't bought from credit card proceeds, but from selling our house in the UK. But I have used the cards while I've been here though.
What sort of thing should I say to the credit cards....and how little would they be prepared to accept do you think?

inmypocketnottheirs

The best thing would be to enter a DMP (Debt Management Plan). You would be best advised to contact Payplan or CCCS, two registered charities that do not charge fees. There are plenty of commercial organisations that do DMP's but they will charge you. Have a look round the debtfreewannabe section for help/advise re DMP.

I am not sure if you can do a DMP if you are not resident, but Payplan or CCCS will be able to advise.

The problem will be that you have been using credit in the UK, without having the right to use it. The credit that has been given to you, was granted I suspect when you were resident in the UK, and with a job here at the time.

I think you will need to be very careful when dealing with your creditors, as they will all perceive that they have funded your living Spain, and I am sure you can see the ramifications of that.

All the best.

penguin83

We have had one recently who had property abroad and the OR did take that off them (this was an additional property though to the one in England).

Ps you have to be declared bankrupt at the court whose jurisdiction you have lived in for at least 6 months so I would assume you would be unable to declare Bankruptcy in England. Im sure someone who knows more will be along soon to confirm/deny that though!

Good Luck with whatever you decide. x

fallout_2

inmypocketnottheirs wrote: »

The problem will be that you have been using credit in the UK, without having the right to use it. The credit that has been given to you, was granted I suspect when you were resident in the UK, and with a job here at the time.

I advised the four companies concerned when I was moving to Spain....and they've been sending bills here for the last two years. In fact, one of them even increased my spending limit during that time.
So they were all well aware of my circumstances and had no issue with it whatsoever.

Conor_3

You'll be needing to declare in Spain. Somehow I get the feeling that it might not be as straightfoward as the UK.

fallout_2

Would you say an IVA would be a better option?

Emmzi

Is £300-£400 a month enough to pay living expenses without the debts included?

If not, and you aren't covering your living costs, you may need to have a complete rethink.

What do you need for rates/water/phone/electricity/food/ car/insurance/school etc each month?

Emmzi

PS CCCS (charity like CAB) do help overseas residents.. their website says..

Please call us

As you are not a resident of the UK, we are unable
to take you through the CCCS Debt Remedy process. However,
to find out how we may be able to help, please call
to speak to one of our debt counsellors.


Please note that CCCS can only advise on UK debts.


Call us on +44 113 297 0126
Monday to Friday 8am-8pm*

fallout_2

Emmzi wrote: »

Is £300-£400 a month enough to pay living expenses without the debts included?

If not, and you aren't covering your living costs, you may need to have a complete rethink.

What do you need for rates/water/phone/electricity/food/ car/insurance/school etc each month?

I've got the house up for sale at the moment but the market is pretty flat here now.
Work is picking up a bit but I can run into a month or two with nothing, so it's not easy.
Really I have to have at least £800 a month coming to stay afloat....and that's before I start trying to pay the debts.