Can I move to a different country while I am bankrupt

James Falla

• 24 Feb 2022

This article explains whether you are allowed to move to a different country after you have gone bankrupt in the UK. It also provides advice on the information you will be expected to give to the Official Receiver and how easy it will be to get credit after you move abroad.

Included in this article:

• Are you allowed to move to a different country while you are bankrupt?
• Do you still have to make payments towards your debts?
• Can you get credit after you move abroad?

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Are you allowed to move to a different country while you are bankrupt?

Bankruptcy lasts for 12 months (1 year). During this time you are allowed to move to a different county if you wish. There are no restrictions on foreign travel.

You can move abroad permanently if you wish. You can also go temporarily for work, on holiday or to visit a relative.

No-one in the country you are moving to will know you are bankrupt (unless you tell them). There is no international register. You will not be stopped at the boarder and refused entry.

If you do move permanently, you must tell the Official Receiver (OR). You will need to give them your new contact details so they can get in touch with you if necessary. If you don’t yet have a permanent address, this can be provided later. They will normally contact you via e-mail if they need to.

Have you gone bankrupt in Northern Ireland? In this case, you are not allowed to leave the country without first getting agreement from the OR and the Court.

Do you have to make payments towards your debts after you move abroad?

You are still bound by the rules of your UK bankruptcy after you have moved to a different country. If you are working and you have a surplus income, the Official Receiver will still expect you to send this to them each month (an income payment agreement (IPA).

The rules regarding monthly payments work in exactly the same way as if you were still living in the UK.

When you get a job, you should tell the OR. They will ask you to provide an income and expenses budget (converted from the local currency into pounds). They will use this to establish whether you have any surplus. This is no different to if you were living in the UK.

Your surplus income might fall after you move. Perhaps you don’t yet have a job. If you already have an IPA set up, you should let the OR know about the change. They will then arrange for your payments to stop.

When you live abroad, there is no way that the OR can check whether you are working or not and the amount you are earning. As such they rely on you providing this information to them.

Can you get credit after you move abroad?

The fact you are bankrupt in the UK is recorded on your credit file here. This seriously affects your credit rating in the UK. However, if you move to a different county, your local credit rating will not be affected.

Your credit rating is not transferred to other counties. There are no cross country checks. Local banks and credit providers where you are now living will not know you are bankrupt in the UK. They will therefore make decisions about lending to you on the same basis as anyone else who recently moved into the country.

After you move to a different country, it would therefore be relatively easy for you to open a new bank account and even get credit facilities such as car finance if you decide to.

That said, until you are discharged, you are still bound by the rules of bankruptcy in the UK. These state you should not take credit of more than £500 without telling the lender you are bankrupt.

Thanking about moving abroad after going bankrupt? Give us a call (0800 044 3194) or complete the form below for more advice on the implications for you.