Moving abroad while bankrupt?

shade123

Hi Everyone!

I'm relatively new to the site, but after a month of consideration and research it appears that Bankruptcy is the best option for me due to to my debts being so high. As I am still quite young and have relatively few assets it should allow to me start of fresh with a clean state, as there is realistically no way I will be able to pay off the amount of debt I have amassed.

Most of my debt was acquired through poor decisions and being in a poor environment. I was often pressured to get loans for friends and boyfriends who eventually stopped paying for them. I have thankfully learnt and grown as a person and hope to get a fresh start after filing for bankruptcy.

I was hoping to move abroad to seek employment (I am currently unemployed but studying) after filing for bankruptcy. I was wondering if I would have to declare my salary and bank account to the OR, and if this would have any effect on my Bankruptcy? Has anyone moved abroad while bankrupt, and how did it go?

Also in order to move I will need to save money. How did you save money before bankruptcy in order to survive it?

Any help or advice would be greatly appreciated as I am still relatively new to this

MalMonroe

Any of the free debt charities will be able to help you. I used StepChange and they helped me, never judged me and of course they are experienced in dealing with people in debt for whatever reason. Are you sure you will be able to move abroad so easily? What are your job prospects wherever you intend to go and, more importantly, how on earth can you afford to, given that you are considering bankruptcy? Before you do anything, please do contact somewhere like StepChange, they will help and advise and if you do decide bankruptcy is your only option, they'll help you with that, too. 0800 138 1111

DCFC79

How would you support yourself whilst you look for work ?

Use the money you would save up right ?

How much would you save up ?

A property to live could be expensive, food too.

How quick do you think you could find work ?

Minkym00

Definitely seek proper advice first.


Although bankruptcy relieves you of the burden of paying off your debts, there are strings attached which you need to consider carefully - bankrupts don't always get to walk away to carry on life the way they would want. The Official Receiver's role as trustee is to administrate your bankruptcy, and also to recover funds for the benefit of your creditors.


If you save money prior to bankruptcy it will be claimed for your creditors. When the bankruptcy order is made the bank will freeze your account and will not let you have access to it unless they are instructed by the OR. If you have money other than for living expenses, the OR will take it.


If you are able to save money prior to bankruptcy you will be asked why you didn't use it to go towards your debts. Although unlikely given the amount you are probably thinking of, it is technically a bankruptcy misconduct which could attract a civil penalty.


You have to declare your income on the application, and it will be checked via your bank statements.


You will not be able to save money whilst bankrupt (and for up to 3 years afterwards) as any surplus funds you have after your reasonable expenses have been paid will be claimed for the benefit of your creditors on the form of an Income Payments Arrangement.


It's certainly possible to live abroad once bankrupt as you can communicate via email, but you will need to see how your finances work out first.


Please ensure you are aware of the impact of bankruptcy before doing anything.

terrence45

Please do a lot of research before filing for bankruptcy, as it seems you don't even know the basics. Give Stepchange or National Debtline a ring - they are very nice and helpful and will guide you through the process.


In terms of moving abroad, as long as you tell the OR your new address within the specified time limit (21 days I seem to remember) you can move wherever you like. I moved to an EU country a few months into bankruptcy and found a job fairly easily. Setting up a bank account is easy abroad because credit reporting systems aren't linked whatsoever between different countries, currently.


You'll need to report earnings to the OR whilst bankrupt, and I very much doubt they'd allow you any moving costs for relocating abroad, so why not go abroad first and then file for bankruptcy? I think you have a few months grace period.