Bankruptcy

[maxsan]

With all the news about bankruptcy being a "lifestyle choice" for many in the Uk at present, I began wondering if going bankrupt in the Uk would affect one over here.  For example, if one had purchased a house in France and become over extended financially, would going bankrupt in the UK mean that one's house in France would be at risk of repossession? 

I do understand the moral arguments regarding debt etc. so if you could avoid clogging up this post with your personal views on debt I would be grateful.

[Val_2]

I have a nasty feeling that the UK revenue would use any foreign-own property where bankruptcy is concerned. I say this because in 1991 we,like all the other local builders were investigated by the UK tax man and to our surprise and shock they knew all about the house we had bought in France two years earlier,how much we had paid,our passport numbers and worse still, how many times we had crossed the channel since buying it. This confirms my suspicians that you cannot hide anything either here in France or in the UK where finance or property is concerned. At the end of the day, I cannot see the authorities letting anyone keep,what is really a luxury item if you still inthe UK, when debts have to be settled.

[Anton Redman]

You have either gone bankrupt or your have not.  Your are obliged to tell your trustee / the official reciever of all your assets, with the exception of tools of your trade and your bed they sell them for the benefit of your creditors and you are allowed to start again with a clean sheet.  As in everything "The Rich Get Rich and The Poor get Poorer"

[maxsan]

erm yes I realise that I think but what I was looking for is not so much that the Uk taxman would know about a French home, but rather whether they could touch that home.  In other words whther there are cross border agreements that allow a creditor in the Uk, via the Court, to reach out and include a house or asset in another country in the assets to be considered.

 

[Russethouse]

I suspect that the UK taxman can 'reach out'. My memory may be wrong but wasn't a rather nice home in France saved from the fall out of the Robert Maxwell affair only because it was Mrs Maxwells name ?

[Iceni]

Gay

Assets that are not the property of the bankrupt cannot be touched PROVIDED that any purchases/transfers in the months up to the bankruptcy were not done with the intention of defrauding creditors.

BTW bankruptcy is nothing to do with the taxman - along with HM C&E he tends to be a creditor in many cases.

Failure to make full and frank disclosure of assets to a Trustee in Bankruptcy is a serious offence. Whether a house in another country is a main residence or weekend retreat is irrelevant, it is an asset and creditors have a right to get their money back. The latest UK rules on discharge from bankruptcy may seem a lot softer but this is a very serious subject and as usual, I do not recommend the "Dog and Duck" as the best place to take advice.

John

not

[maxsan]

I agree Iceni but it is always a place to take a sounding. I am actually getting a professional (family) to examine the facts. It is just a point of interest for me at present thankfully.  Just another area of living in France that one has to be aware of just in case, like inheritance issues.

[mark24]

The receiver can clam all your world wide assets as a sole trader or individual ,And even if your wife has had assets put in her name before you go bang.

they can even clam a percentage of any thing that your wife owned before you were married if they can prove that you have contributed to it while you were married.

Once you file for bankruptcy the tax man and VAT man will give any relevant info to the receiver to help get as much as they can back as the tax man and Vat man are the first ones if any to get money back after the receiver .

As for the house in France it will be sold by an appointed bailiff and will go for a pittance. The receiver will have you  sign all relevant paper work so it can be sold .

As their will be a paper trail some where that will lead them to any and every thing.

This happened to a guy that used to work for us in the Uk two years ago.

He was allowed to keep only what he needed to carry on his trade and make a living .

And was only allowed to earn what they said he needed to live on any more and they just took it back.

Even some of the power tools that he had two of were sold .

He was  given a letter to state that what tools and van he was allowed  to keep and no one could touch them.

The biggest  joke was the  receiver gave him a list of banks that would give him a basic  bank account so he could get his wages paid in . All the main banks had come to some agreement with HM Receiver .But none of them would entertain Him !