How To Go Bankrupt From Abroad

You can run, but you cannot hide. You should not be surprised at all. Nowadays, everything is gone global. Why should a bankruptcy be an exception from this rule? If your choice to live and work abroad is your way of dealing or better to say avoiding bankruptcy, then you could not be possibly more wrong. On the other hand, if you have tried to run two households or two businesses in different countries or even different continents and you have failed financially in one of them, there is no reason for you to worry about it. The modern bankruptcy mechanisms are so sophisticated and inevitable, that it really does not matter where you are at the moment when bankruptcy occurs. One thing is more than certain for this issue. If your life or business has already become international, you simply cannot allow yourself such a luxury of not being properly informed about the situation of bankruptcy from abroad. This could easily turn out to be one of the important factors in determining your plans for the future personal, employment or entrepreneurship involvement abroad.

Where Do I Go From Here?

First things first, when it comes to the bankruptcy from abroad the essential detail that shapes your bankruptcy situation is the question – where did you go? In addition, one more question – how long have you been living outside the UK? You have to be a resident of a new country for less than three years before applying for the bankruptcy in the UK. One more very important fact. If your current residence is in a European Union at the moment you are seriously considering bankruptcy as the only option for your financial situation, then you have one additional obligation. You have to provide an evidence to the court that the very center of your business activities and primary interests is in the UK, and not in the country you are currently living.

For other situations which include your residence outside the EU including Denmark you have to meet the two conditions in order to declare bankruptcy. First of all, you have to appear in person at the court of law on the very day you are to submit your petition for bankruptcy. The second condition is referring to the three-year period of residence prior to the applying for bankruptcy.

Bankruptcy Interpol.

There is no such thing as Bankruptcy Interpol. However, the level of cooperation among the creditors and institutions of two countries related to your residence and bankruptcy may easily surprise you. In addition, when it comes to the financial and especially bankruptcy issues the absolute majority of the countries in the world have very similar legislation for this problem. On the other side, one more time the EU residence issue plays an important role in your bankruptcy from abroad.

The united Europe can demonstrate its strength of unity in a very unpopular way for your bankruptcy situation. If your center of main interests is within the EU, your creditors from the UK are free to follow the trace of your assets all over Europe. It is a little bit different if you are living outside the EU with an exception of Denmark. The situation in the USA for example can be more challenging for your creditors if they do not get a recognition as such from the local jurisdiction. The situation can be additionally complicated by the possibility to sell or not to sell bankruptcy related estate in a foreign country. It is definitely not wise for you to wait for the situation of your bankruptcy with international elements to become paralyzed in the net of confusing regulations and unpredictable problems.

It would be a wrong thing for you to influence your decision about the future location for your life and business according to the regulations for the bankruptcy from abroad. On the other side, you should be completely aware of some of the main consequences related to the bankruptcy in the international environment. We are witnessing the unparalleled migrations of people, goods and information in the last few decades. It is more than reasonable to expect that certain processes especially those related to the financial sphere will follow in the same pattern. Just like in the other life situations it is strongly recommended to start something new without the heavy burden of your old baggage. Try to solve your financial problems in your home country before taking into serious consideration other countries and continents as your future temporary or permanent destinations for your life and business. The bankruptcy is definitely not a desirable guest to provide you with a solution for your trouble with nostalgia.

Andy Gorton is the author and editor of the Bankruptcy Clinic

Andy Gorton – who has written posts on Bankruptcy Clinic Blog.

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