This guide explains when you can apply for bankruptcy in England or Wales if you live abroad. In this guide, ‘abroad’ means living outside the UK.

Bankruptcy is an official order that writes off most of your debts after a period of time, usually one year. If you cannot pay your debts, bankruptcy may help you make a fresh start. But it is a big decision, and you should understand what it means before you apply.

Use this guide to:

• check whether you may be able to go bankrupt in England or Wales if you live abroad;
• understand what is likely to happen after you go bankrupt;
• understand the effect that a bankruptcy order in England or Wales may have on you abroad; and
• see if your creditors may still be able to take action against you abroad after you have gone bankrupt in England or Wales.

Bankruptcy in England or Wales if you live abroad

If you live outside of the UK, you may be able to go bankrupt in England or Wales in some circumstances.

You cannot apply to become bankrupt in England or Wales if you live in Scotland or Northern Ireland.

When you apply to make yourself bankrupt, an adjudicator will decide your application. They can make a bankruptcy order if your ‘centre of main interests’ is in England or Wales.

Your centre of main interests is usually the country where you mainly live or work, and where people would normally expect to find you.

If your centre of main interests is not in England or Wales, you may still be able to apply for bankruptcy there. This is possible if any of the following situations apply to you.

• Your centre of main interests is in an EU member state (except Denmark) and you have carried on business in England or Wales during the three months before you apply for bankruptcy.
• You have carried on a business, been resident or had a place of residence in England or Wales at any time in the three years before you apply for bankruptcy. You may be treated as resident if you can show that you were settled there or that you had your usual home there. A short stay in someone else’s home might not count as a residence.
• You are domiciled in England or Wales. ‘Domiciled’ is a legal term. It usually refers to the country that the law sees as your permanent home. You may still be domiciled in England or Wales even if you have lived abroad for many years.

You may need legal advice to find out whether the adjudicator can make you bankrupt in England or Wales. Contact us if you need help finding suitable legal support.

A bankruptcy order made in England and Wales is not automatically recognised abroad. Creditors in the country where you live may still be able to take action against you there. For more information, see the later sections How your bankruptcy is viewed abroad, Assets abroad and Foreign creditors.

How to apply

You must apply online at www.gov.uk/bankruptcy. It costs £680 to submit your application.

Your application will be sent to the adjudicator at the Insolvency Service. They will check that you cannot pay your debts as they fall due and that England or Wales is the correct place for you to go bankrupt. If you do not meet the criteria described earlier in Bankruptcy in England or Wales if you live abroad, your application will be refused.

The adjudicator will usually make their decision within 28 days of receiving your application. You do not need to attend a court hearing.

If the adjudicator refuses to make a bankruptcy order, they will send you a notice to tell you this. This is called a ‘notice of refusal’. This notice must tell you why they did not make you bankrupt.

You can ask the adjudicator to review their decision, but you must do this within 14 days of the notice of refusal being delivered. You must give reasons for asking for the review, but the adjudicator can only look at the information you provided in your original application. You cannot give any new information.

If the adjudicator still does not make you bankrupt, they must send you a notice to confirm this.

You can appeal to the court against the adjudicator’s final decision. You must do this within 28 days of receiving the notice that confirms the adjudicator’s decision after your review request.

If you want to appeal, you will need further help. Contact us for advice on finding the right support.

If your bankruptcy application fails, you will be refunded £550 of the fee you paid when you applied.

After bankruptcy

After a bankruptcy order is made, you will need to give the official receiver further information. The official receiver manages your bankruptcy.

You may be asked to fill in more forms or provide certain documents. The official receiver may also ask you to attend their office for an interview, although in some situations they may agree to do this by online or by phone.

The further information that the official receiver may need cannot be provided before a bankruptcy order is made, and you cannot book an interview in advance.

If you explain your situation to the official receiver, for example that you are only in the country for a short time, they may try to arrange an appointment for you as soon as possible. They may also agree to carry out the interview online or by phone.

You must provide any information that the official receiver asks for. If you cannot do so, think carefully about whether bankruptcy is the right solution for you. Contact us for advice.

The trustee in your bankruptcy will take control of your assets and contact your creditors. The trustee will be either the official receiver or an insolvency practitioner.

How your bankruptcy is viewed abroad

If you are made bankrupt in England or Wales and live abroad, or move abroad later, you may need ask a local court in that country to recognise your bankruptcy.

Whether your bankruptcy can be recognised in another country depends upon whether that country has an agreement with the UK. If there is no agreement and the country does not recognise your bankruptcy, your creditors may still be able to take action against you there.

A bankruptcy order made in England or Wales may have other effects on you if you live abroad or move abroad. You should get legal advice in the country where you live, or plan to live, to understand how bankruptcy in England or Wales might affect you. Contact us for advice on how to find suitable legal help.

Previous bankruptcy rules

If you were made bankrupt under an order made before 11pm on 31 December 2020, your bankruptcy should be recognised in other EU member states (except Denmark). This means that creditors cannot take action against you in these countries to recover debts that were included in the bankruptcy. But, the bankruptcy may still lead to restrictions being placed on you in the country where you live or move to. You should get advice in that country about any possible restrictions and what they are.

Assets abroad

All your assets pass to your trustee in bankruptcy after the bankruptcy order is made. In most cases, this applies to assets wherever they are in the world.

The trustee may find it difficult to sell any assets you have abroad. This is because the other country may not recognise their authority. As a result, the trustee may need to take legal action if they want to deal with those assets.

You may need legal advice about the effect of bankruptcy on your assets abroad. Contact us for advice about how to find suitable legal help.

Assets in the EU and previous bankruptcy rules

If you were made bankrupt under an order made before 11pm on 31 December 2020, your trustee should be able to deal with any assets you have in the EU (except Denmark).

Foreign creditors

If you go bankrupt in England or Wales, the following points apply.

• All your qualifying creditors, wherever they are in the world, will be included in your bankruptcy. This means they cannot take action against you in England or Wales to recover the money you owe. A ‘qualifying creditor’ is a creditor who is owed a debt that is included in bankruptcy. Some debts are not included, such as debts that were taken out by fraud.
• Creditors may still try to take action against you in countries outside of England or Wales.
• If you have any assets abroad, creditors may be able to take action that puts those assets at risk.

This is a complicated area. You may need specialist legal advice. We may be able to help you find suitable legal advice. Contact us for advice.

Creditor action and previous bankruptcy rules

If you were made bankrupt by an order made before 11pm on 31 December 2020, creditors will not be able to take action against you in the EU (except Denmark) for a debt that was included in the bankruptcy.

Other solutions

Bankruptcy is a serious step. Think carefully before deciding whether to apply. There are advantages and disadvantages to consider.

It is also important to get advice about all of the ways you can deal with your debts. Contact us for advice on the different options available to you.