Applying for an IVA outside the UK

MSanchez

Hi
Is there anyone who can give me some sound advise? I moved to New Zealand from the UK just over 2 years ago and have been trying to repay my debt on my credit cards (approx £26k) and unfortunately due to various circumstances I am no longer able to meet the minimum payments. I have looked at the options available and it appears the most sensible one is an IVA; unfortunately Bankruptcy is not really possible as I am a CIMA member and I believe it is possible I could lose my membership if I declare bankruptcy (or rather I would prefer not to risk it - CIMA are also refuse to advise me on what the criteria is regarding this matter).

I would like to know what are the potential pitfalls and if there are any reputable/recommended Insolvency Practioners; I have contacted StepChange and PayPlan but they seem to have some barriers due to the fact I am abroad.

Many thanks. 

sourcrates

You have 3 years to apply for an IVA if living outside the EU.

You would need to contact an IP directly, rather than go through a charity, there own policies usually mean they cannot deal with clients from outside the UK.

Do you intend returning to the UK any time soon ?  if not its very unlikley the debts will find you in New Zealand, and after 6 years they would be statute barred, just another option for you.

An IVA can only be put in place if your creditors accept it. Gaining such acceptance can be difficult if they are based in different countries. As such it is more common to go bankrupt or just ignore foreign debt.

MSanchez

Thanks for the advise, unfortunately as I am a Management accountant I am unable to go bankrupt as this may risk my membership and that also means I cannot ignore the debt too,

ToxtethO'Grady

How much do you feel you have available for the debts each month?

It may be better to manage this yourself through a self-managed DMP as with an IVA they have fees and I would imagine these would be higher if they are having to deal with a difference in currency and transactions through international banks.

Do you still have a UK bank account you can access? That would make it easier to manage this from abroad yourself.

Another thing to think about is if bankruptcy may affect your work so might an IVA as it is a form of insolvency as well and is on the publically accessible Individual Insolvency Register.

The advantages of a self-managed DMP are a pro-rata payment to your debts has less of an impact on any credit scoring, it would be unlikely that your UK creditors would take legal action abroad for that level of debt, you'd have control and should be no fees coming off what you pay to your creditors.