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Another Oz debt and bankruptsy in UK saga


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Hi All. I have been reading all other threads in similar situation so have some insight but would like advice on my situation. In brief. Had Ltd Company in Oz that collapsed due to credit crunch. Managed to sell business on to largest customer for enough money to pay off all my suppliers but not the bank. Left Oz 2010. I have around $300 000 AU in unsecured debt of credit cards, a car loan (car returned and balance outstanding after they sold it) and an unsecured line of credit with Bank. The debts all have my husband and myself as guarantors. The Car company has registered a debt of 35000 with the magistrate court in OZ and I have received notification in post here in uk. I have no doubt they and others will come after us for the rest so want to be prepared.

 

My UK situation is house with 20% equity and a mortgage. Leased business. Both in joint names. Never ever had a bad debt previously in Oz or UK.

 

My questions are these

 

Will UK bankruptsy clear Oz debt?

If it is included and we go bankrupt now and they chase much later will this still be covered?

 

Will bankruptsy effect my current business and loans if they are all clean and up to date?

 

We wanted to declare bankruptsy in OZ but were scared they wouldnt let us leave the country. We have dual passports. Do you think it could be an option to return there, do it and then leave after paperwork done?

 

When they do chase, can they make you sell your house if there is no equity in it and there are first charges with another bank in place ie my mortgage in uk meaning they wouldnt get anything?

 

I do have lots of other questions but will start with these so thanking you in advance for taking the time to respond and look forward to receiving any and all advice.

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I'm afraid with bankruptcy all assets are taken into account no matter which country you decide to take bankruptcy in. The bankruptcy rules will still apply so I'm afraid both your business, house and bank loans will be included in the administration.

 

We wanted to declare bankruptsy in OZ but were scared they wouldnt let us leave the country. We have dual passports. Do you think it could be an option to return there, do it and then leave after paperwork done?
It is a civil matter not a criminal one, so if you decided to enter bankruptcy in Oz you can do and it would not affect you being able to leave.

 

When they do chase, can they make you sell your house if there is no equity in it and there are first charges with another bank in place ie my mortgage in uk meaning they wouldnt get anything?
If there is no bankruptcy they can go through the courts here and apply for CCJs or ask a court to enforce an Oz court order if they had already obtained one prior to you moving. They could apply for a Charging Order which could force the sale of the property if a court allowed them.

 

If there isn't already a bankruptcy in place they could send you a Statutory Demand which could lead to bankruptcy here.

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Thank you for getting back so quickly. I have another question. A family member (nephew) gave me 60K pounds which is also tied up in my house but he is not on the paperwork. Can he put a charge on my property for the full amount and then at least if we are forced to sell he will at least recover his money second after mortgage. Could he file bankruptsy against us and just leave a charge on the property indefinitely ie to be repaid one day.... He would be in agreement with this if it was possible. I dont really understand what the procedure is after bankruptsy is filed. Does the creditor filing the bankruptsy get priority claim?

 

What would happen if I sold everything now before anyone has filed anything against us and lost the cash left over?.

 

Thanks again in advance

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It is a civil matter not a criminal one, so if you decided to enter bankruptcy in Oz you can do and it would not affect you being able to leave.

 

As far as i know.. If made bankrupt in Australia. You need to ask permission of the trustee to leave Australia. All overseas travel require the trustees permission and one of the rules is you must be able to show that someone else paid for the travel costs. If you leave without permission the bankruptcy period can be extended. Plus maybe other things.

As part of the bankruptcy you can be asked to surrender your passport

http://www.itsa.gov.au/dir228/itsaweb.nsf/docindex/Bankruptcy-%3EFAQ#no93

Edited by krios
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