Resolve Debt in Ireland – Go Bankrupt in England
- 28 Oct 2021
If you are struggling with debt in Ireland one of the options available is to move to England and go Bankrupt.
- How to write off debt in Ireland by going Bankrupt in England
- When can you return to Ireland?
- Will your Irish credit rating be affected?
- Can you go to Northern Ireland?
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How to write off debt in Ireland by going Bankrupt in England
If you have debt in Ireland and particularly if you are struggling with your mortgage but cannot sell your property you may feel trapped. One way out is to stop paying the mortgage company and hand the keys back to the mortgage lender. Then go Bankrupt in England.
Under EU rules if you go bankrupt in England or Wales any unsecured debt that you owe in Ireland or any other EU county such as bank loans or a mortgage shortfall is included. The local mortgage lender or other creditors to whom you owe money can no longer enforce the debt.
Unfortunately you cannot simply take a day trip to England or Wales and go bankrupt. Before you can submit your application your Centre of Main Interest (COMI) must be in England for the greater part of the last 6 months.
You have to move to England or Wales and live here for at least 6 months before you qualify to apply for Bankruptcy.
When can you return to Ireland after going Bankrupt in England?
After you go bankrupt you do not have to stay in England/Wales. There is no legal requirement for you to remain here. As such you can return to Ireland the next day if you wish.
Having said that it is best to plan to remain for a few months at least. Your Bankruptcy will be managed by the Official Receiver (OR). Some ORs may prefer you to stay in England until you are discharged.
However if you believe that you will have better job prospects in Ireland or have other pressing reasons to move you cannot be forced to stay.
If you return to Ireland before you are discharged you are still obliged to keep in contact with the Official receiver and let them know if your income changes.
Will your Irish Credit Rating be affected?
When you go Bankrupt your credit rating in the UK will be negatively affected for 6 years. As a result you will find it difficult to apply for any kind of credit here during this period.
However if you are planning to move back to Ireland this will probably not bother you. The fact that you are Bankrupt in the UK is unlikely to be recorded on your Irish credit file.
Having said that the reason for going Bankrupt in England was that you had debt in Ireland that you were unable to pay. As such it is possible that your credit rating in Ireland will be affected anyway by these issues.
Credit reference agencies rarely have access to cross boarder information. As such if you have a poor credit rating in one country this will generally not affect your rating in another.
Can you moved from Ireland to Northern Ireland and then go Bankrupt?
Rather than moving to England or Wales to go bankrupt you may be wondering whether you could go to Northern Ireland. The answer is yes you can.
However you will have to move to Northern Ireland. You will need to be able to prove that your Centre of Main Interest has been in Northern Ireland for the greater part of the last 6 months normally with bank and rent statements.
Having said that one of the major downsides of Bankruptcy in Northern Ireland is that it is not so easy to move home afterwards. If you want to move back to Ireland during the 12 months you are Bankrupt you must first apply for permission from the Court.
If you go Bankrupt in Northern Ireland you are not allowed to leave the county until you are discharged without the permission of the Court.