Huge Debt - Please help/advise

gotintrouble

Hi All,

I have a problem, which keeps me in depression for quite long time. I thought to ask here people who got through it or can share valuable advice.
About me: I am EU citizen, but living constantly in UK from 2015.
Source of problem: I have been a director of EU company and have been sued to the court for not raising bankruptcy on time for company(it will be complicated to explain in details, as company continued trading for 3 years more, but real owner/last director just not paid them). I have lost court which instructed to pay EU creditors €1.7m.
 Current situation: I am working in UK from the date of arrival and don’t have any debts in UK(except mortgage) nor EU(except €1.7m).
So I am married, we have little child and mortgage LTV 83% of £90k. 
EU creditor haven’t yet looked in UK for me, but it will happen at some point as I have provided all my details to the court, from where they can see my location. 
By reading on net that UK bankruptcy could not be recognised in other EU countries, I am not sure if that’s true. 
I want to sort this debt, but I will not be able to repay such ridiculous amount and with which I don’t agree at all, not a penny.

What should I do? 

Puddles83

Consult a solicitor.

luvchocolate

Hi I would imagine that would be one for one of our professional posters..not your regular poster. 
You could try calling one of the debt free charities..maybe business Debtline?

Minkym00

Firstly you need to check that any bankruptcy order made here would be valid in your home country. 

Whether or not you could declare yourself bankrupt the UK will depend on whether you can prove it’s your centre of main interest. So if you’ve lived and worked here for the last 5 years you should be ok. Plus you have a property here. You’ll be asked to provide evidence of this before your bankruptcy order is granted.

The next thing to consider is your asset position. You have a property, but there isn’t a lot of equity in it. I assume it’s jointly owned? Can you prepare in advance and have your partner to raise £7.5k to buy out your interest? 

Do you own a car? Earn a decent salary?

MalMonroe

gotintrouble said:

Hi All,

I have a problem, which keeps me in depression for quite long time. I thought to ask here people who got through it or can share valuable advice.
About me: I am EU citizen, but living constantly in UK from 2015.
Source of problem: I have been a director of EU company and have been sued to the court for not raising bankruptcy on time for company(it will be complicated to explain in details, as company continued trading for 3 years more, but real owner/last director just not paid them). I have lost court which instructed to pay EU creditors €1.7m.
 Current situation: I am working in UK from the date of arrival and don’t have any debts in UK(except mortgage) nor EU(except €1.7m).
So I am married, we have little child and mortgage LTV 83% of £90k. 
EU creditor haven’t yet looked in UK for me, but it will happen at some point as I have provided all my details to the court, from where they can see my location. 
By reading on net that UK bankruptcy could not be recognised in other EU countries, I am not sure if that’s true. 
I want to sort this debt, but I will not be able to repay such ridiculous amount and with which I don’t agree at all, not a penny.

What should I do? 

As far as I can see, even though the UK has now left the EU, debtors from the EU can still be pursued in the UK. There is more info in this link https://insolbaltika.co.uk/the-law/

There's also helpful information in this link about what to do if you do not agree that the debt is valid.  https://europa.eu/youreurope/business/finance-funding/making-receiving-payments/cross-border-debt-recovery/index_en.htm

A bit of UK government info here - https://www.gov.uk/government/publications/cross-border-insolvencies-recognition-and-enforcement-in-eu-member-states-from-1-january-2021/cross-border-insolvencies-recognition-and-enforcement-in-eu-member-states-from-1-january-2021

You could also contact Citizens Advice in this country. Link - https://www.citizensadvice.org.uk/

If they cannot help you, they will tell you who can. It's probably best to be prepared for when the creditors do contact you - which they obviously will since they have your details and will be wanting their money. 

I hope this is helpful. 

gotintrouble

Minkym00 said:
 Firstly you need to check that any bankruptcy order made here would be valid in your home country. 

Whether or not you could declare yourself bankrupt the UK will depend on whether you can prove it’s your centre of main interest. So if you’ve lived and worked here for the last 5 years you should be ok. Plus you have a property here. You’ll be asked to provide evidence of this before your bankruptcy order is granted.

The next thing to consider is your asset position. You have a property, but there isn’t a lot of equity in it. I assume it’s jointly owned? Can you prepare in advance and have your partner to raise £7.5k to buy out your interest? 

Do you own a car? Earn a decent salary?

Hi, all your points are valid. Home country can’t confirm if it will be valid and  due Brexit, things changed and people now require to get through the court for validation. In some cases not always guaranteed.
That’s correct joint mortgage(50/50), we are saving for buy out. No car.
Income source: full time employed in finance sector(losing job potentially). Salary £45k, but only me working and wife taking care child.
Any assets protection movements? Like divorce and maintenance unpaid?

Thanks a lot for looking into it!

gotintrouble

luvchocolate said:

Hi I would imagine that would be one for one of our professional posters..not your regular poster. 
You could try calling one of the debt free charities..maybe business Debtline?

Hi, any recommendations of exact person? Debtline in case going straight for it, but I would like to look for assets protection solution.
Thanks!

luvchocolate

You've had advice from Minkym00
They know their stuff 

gotintrouble

What would be a solution in my case?

gotintrouble

Just was reading a lot and came across Child maintenance in arrears or second charge on property? Does anyone got any experience or advise?