Firstly, I've been a regular visitor to the site for a while, checking other people's posts etc and i think it's fantastic, very helpful so thanks for keeping me sane through this difficult period of my life.
Anyway, I've finally decided on bankruptcy and have a couple of questions that I haven't been able to find the answer from other users of the site.
One big concern for me is I own a property abroad (outside the EU) which has a large (foreign) bank loan against it (roughly equal to the value of the property). I've repaid just over 2 years of that loan but there's another 8 years to go.
My questions are: When bankrupt in the UK, what happens to that loan - is it also included in the bankruptcy and will that foreign bank have to accept the UK court's decision?
What happens to the property - will the OR force me to sell it and I still end up with having to repay a loan abroad?
What happens if I don't list the debt in my bankruptcy application?
When bankrupt in the UK, what happens to that loan - is it also included in the bankruptcy and will that foreign bank have to accept the UK court's decision?
Yes, any debt can be included in the UK bankruptcy and the bank should accept the decision.
What happens to the property - will the OR force me to sell it and I still end up with having to repay a loan abroad?
If the loan is secured on the property then the bank will probably take it back. If not then the OR would want to sell it if there were any equity in it.
What happens if I don't list the debt in my bankruptcy application?
There is always a chance that the OR will find out about it. If you are currently living in the property then they will be able to find out whether you own or rent it. Also if you want the loan against the property included in the BR then you would need to provide the details to the OR.
Property Abroad
Posted - 31 August 2009 : 15:52:13
