axis

Hello all,

Sorry to say but I'm going to have to file bankruptcy for my debt in the UK. I've been in the US for 6 years, 10yr GC holder/permanent resident and have been paying my UK CC bills perfectly the whole time.

Three months ago my finances and income took a turn for the worst, and I did something very stupid, started borrowing more money from the credit cards, to pay the bills. Since I couldn't make the minimum payments anymore, the whole thing has become irreversible, and what's worse, I've just been made unemployed.

There's no way I can pay this back, since I'm struggling to even keep a roof over my head here in the US, let alone the UK debt. I have no credit here in USA, just haven't ever applied for any.

Since the debt is over 30k pounds now, I'm going to have to declare bankruptcy in the UK. I don't see any other option.

Does anyone know if I have to go back to the UK to file this? Or can it be done remotely via fax/email/phone? And where do I start? Any pointers would be greatly appreciated, all moral slurs will be strictly ignored. Thanks.

Englishmum

You might find the answer here:

http://www.insolvencyhelpline.co.uk/...uptcy-faqs.htm

If not, get your mum or someone in the UK to ask at the Citizen's Advice Bureau.

fatbrit

This is a mistake! It costs you extra in all sorts of ways not having a credit history, and after 6 years you really should be prime A credit. Your UK credit history has no bearing whatsoever. You should start to establish a US credit history as soon as you gain employment again.

USBound

i am in the process of doing this, mine should be filed in sept. You CAN do it without going back to the UK despite all the advice I received here 18months ago. I found an attourney in the UK to who required power of attrouney and cost me around 3000GBP. She has since handled ALL the preparations. It does cost slightly more in court costs due to the handling being in High Court (London) but not significant.

Mine took a LONG LONG time because I had to pay up front which due to my circumstance took a while.

If you have someone who can help you in the UK then you should ask them to handle things for you. You parents maybe? All they require is ALL the details of your debts and a power of attourney.

pm me if you need further information.

NC Penguin

I find it very hard to believe that after 6 years of living in the US, you have no credit history. Have you looked at your credit report recently?

You may be entitled to a free credit report, depending on which state you reside. Check the link in the sticky thread at the top of this forum named "Finance/Credit USA".

It's in your best interests to have a positive credit history in the US because when you might need credit, your past credit history is relevant.



NC Penguin

Pimpbot

I can well believe it. I went nearly two years without any forms of credit or credit building.

fatbrit

With hindsight, do you consider it was a mistake?

Pimpbot

No, because I never needed it. However, if I was in this persons position, yes I would.

snorkmaiden

Yes, we have a friend who has done it also, and he didn't even have to get an attorney, he simply downloaded a power of attorney form from the internet and had a friend go to the High Court in London to file the papers.

It didn't cost him any extra and they did his interview over the phone.

rincewind

Before filing bankruptcy, I would check every last resort first.

Do you have a bank account in the UK? Can you ask for a loan?

I have CC debts as well and I got a loan through First Direct to consolidate my card debt and pay only one payment. Worked fine until I had to use the cards again to pay my bills until I found job.

I know exactly what you are going through.

But try a loan first. If you can't get a loan, try adding all your debts to one card. One payment makes it much easier and most cards will give you a 6 month low interest when you transfer a balance. Mine did.

Good luck, I know how mentally exhausting this can be and I hope you find a way to solve the problem.

It's good to hear that some members on this forum still have a conscience and decide not to just walk away from their responsibilities.

axis

Thank you all so much for the help, it's really appreciated. Unfortunately I think a loan is out of the question, since I can't afford to even make a minimum payment on that even. Doesn't help so much that the exchange rate is 1.8/1.9 these days either

Consolidating it all into one payment would end up at least $1000 a month, can't do that. I've been thinking about this a lot, and I think bankruptcy is the only way out, but gladly, not the end of the world.

Thanks again!

axis

Oh and thanks for the link to the FICO credit score estimator, not sure, but my car loan (of 3yrs so far) gives me a FICO score of 680-735 which apparently is good. It's all I've had, and it's not with a major finance company of any kind but hopefully amounts to something over here in the states.

fatbrit

Provided the company posts to the bureaus, it doesn't matter whether they are major or not. You really need 4 or 5 lines on your credit report with a mixture of installment and revolving for excellent credit. Think about building up to this when you are in a position to so do.

deaks

I didn't know this was possible, but can anyone tell me......

If you file for bankrupcy from abroad (USA) or give someone in the UK power of attorney to file it on your behalf, for debts in the UK just like Axis is thinking about, are any assets that you may have outside of the UK (like in the USA for example) out of reach of the official receiver in the UK??

Technically, if anyone has sold up and immigrated to the USA, surley they would have no assets in the UK at all, therefore making the bankrupcy unable to realise any money for the creditors let alone the cost of the bankrupcy proceedings?????

I'm confused, but very interested in the whys and wherefores of this situation.

Thanks

deaks

fubar

rincewind....is firstdirect available to overseas people or did you set it up using a UK address etc..

I need to consolidate if possible...


thanks

fubar