copey007

Hi People

I am in a very unfortunate situation.

My UK company is on the brink of going bankrupt and I am over in the states doing work setting up a US business. I am 50% shareholder and have been drawing a UK wage.

I very recently got my greencard, as I married a New Yorker, therefore have no UK address (other than my folks address).

My question is this; if I go bankrupt in the UK, what happens with regards to jurisduction? I know the US bankruptcy laws have changed, where the bankrupt individual has to pay whats outstanding in full. Is there anyway the debt/bankruptcy could be transferred to the USA?

I have done everything to avoid this, even considered an IVA, however they said I need to be a UK resident.

I am going crazy with worry, can anyone help?

Thanks

Mark

Celsius

I would think a competent businessman would check the legal ramifications of debt in the UK and if it has any impact in the US before undertaking to start a business in the US.

Perhaps a consultation with a lawyer familiar with both UK and US corporate law is order.

copey007

Thanks for the lecture, I didn't ask for one, but thanks!!!

Anyone got anything constructive to add?

For the record, what happened in the UK was 100% outside of my control

Ray

Your business your fault ...
Any international credit checks done... will not be good ...
Close the UK business and make arrangements to pay the creditors.

copey007

That's nonsense, if you knew anything about business you would know sometimes things are outside of your control...

Now has anyone with business knowledge got anything constructive to say?

Again, will the UK bankruptcy affect my US credit?

Pony

IMHO your UK credit file will not effect your US one. The US credit agencies seem unable to associate your UK file with their US ones. Almost everyone who moves here starts with a zero credit rating. Some people have had success in getting a US institution to recognize their (good) UK credit score - but this was by no means an automatic one. That is not to say that your UK debt will not follow you. If the debt is substantial then an international agency may be employed to collect the debt - presuming they know where you went. If you make arrangements to repay the money then they will not need to pursue you in the US and your credit history here will remain clean.

This site contains great information on building your US credit score.

I am not a lawyer

Celsius

You're not going to get proper legal advice on a message board like this because you have not disclosed the full story about your UK business etc. I don't expect you to either.

Too bad if you don't hear what you want. Life's like that.

PS: if you leave the UK with outstanding debts, you really can screw yourself over if you ever wish to live in the UK at any point in the future.

Ray

Could somebody give this man the answers he wants
he won't accept anything else but the one that suits him ...

copey007

Thanks for your help. My objective here was to try and gleen information from people who may have been in the same situation, or knew someone who had.

conisby

Bankruptcy won't follow you, debts may follow you. My advice, go bankrupt and start a fresh.

franc11s

If you have your green card you are OK to stay here and go work for someone else.

The company (I assume is LTD) will have creditors/debtors but limited liability. Do you have any personal Guarantees? If any of the creditors in the UK get a sense there is anything else to go after, including your US assets, I would say it's better than a 50/50 chance they will. Is the US company a subsidiary of the UK company? Likely that would have to fold too but you would definately need a lawyer for that.

However, again, limited liability will protect you. After all it's the company that's going bankrupt you said, not YOU.

Don't sweat it. Try and pay what you can as if you lived there (under the protection of the limited liability and assuming you have no personal guarantees), and you should be fine.

Of course, if you have personal guarantees and/or not limited then your assets world-wide, is what they *could* come after. It depends. If they come after your partner (50%) then he may give your US assets up to them (at least tell the bankruptcy court). If they think they can recover anything, they sure will.

If you think about it, if you have US assets, they could just assume you moved the assets in time for pre-bankruptcy. Even if that's not the case, it's likely they will think it.

copey007

Great. One thing I want to point out is this, its not my intention to run away from debts, business or otherwise.

Its a limited company and I own 50%. There is one contract with a directors guarantee, but that is it. I have no assets in the UK and I am renting in the US.

My partner is the reason for the problem, I was in the process of selling my shares to him and he did something that caused a huge problem and revenue stopped rolling. I was in the US at the time, but my intention was to take the money, pay everything off and start a fresh in the US. Even transfer the US business to my partner.

Thanks do much for this, some people seemed to think I wanted free legal advice, when really I just needed a steer.

Thanks to those who replied constructively.

You live and learn

franc11s

I had a biz partner and it didn't work out between us after I moved and setup the US Sub. We had investor agreements and so the rules of engagement during the fall-out were fixed and effectively I was able to buy his his share. He was a really nice guy with a lovely family, shame we didn't see eye in the end.

Sounds like your doing everything right, do what you can and use the limited liability protection. It does not seem like you abused it. The personal guarantee is the bitch but if your smart, you'll work it out with the 3rd party as you'll be a pain for them to chase. Don't run though, really try to work it out and it'll come together.

Patrick Hasler

In some states a law exisists that states "When two trains come to a crossing in the rails, both shall do a complete stop, neither shall move until the other has gone"
I wonder if that helps ?

CaliforniaBride

Take a look at this site:

http://forums.moneysavingexpert.com/...lay.html?f=136

Basically, if you become BR in the UK then any earnings will have to be reported to the UK Official receiver until you are discharged. That means any foreign earnings.

You can file BR from US but you have to have been resident in the UK in the last 3 (I think) years.

Basically, US and UK bankruptcy have no connection. If you are going BR in the UK then it is not subject to any of the rules of US BR.

If have lots of links to websites if you want to PM me. I haven't been BR myself but one of my BF's in the UK has just gone through the process.