Can you declare bankruptcy in England or Wales if you live abroad?

Can you declare bankruptcy in England or Wales if you live abroad?

An individual can make an application for a Bankruptcy Order to be made against themselves only on the ground that he is unable to pay his debts as they fall due.

Applications can only be made online and the process is dealt with by an ‘adjudicator’, who is an officer of the Insolvency Service.

The insolvency process is governed by the Insolvency Regulations (IR), comprising The Insolvency (Amendment) Regulations 2000 and the Recast Insolvency Regulation. Central to the IR is the concept that an individual should begin insolvency proceedings in the jurisdiction of their Centre of Main Interests (COMI), which is defined as the jurisdiction within which they are most closely connected. This means it will either be:

• the country where they mainly carry out the trade profession
• the country in which they habitually reside

The adjudicator in England and Wales cannot deal with bankruptcy applications by any person living in any EU member state (except Denmark), Scotland or Northern Ireland, unless the debtor can show that their COMI is in England and Wales and has been for 6 months prior to the bankruptcy application. If this does not apply, then debtors living in these countries must apply for bankruptcy in their own country.

However, the adjudicator does have the power to make bankruptcy orders where the debtors COMI or residence is Denmark or outside the EU and where the debtor has been ‘domiciled’ or carried out business in England and Wales at any time in the 3 years preceding the application for a bankruptcy order.

Have a read of the case of Budniokv The Adjudicator, Insolvency Service (Re Budniok) [2017] EWHC 368 (Ch.).

‘Domicile’ is defined as the country in which a person is considered by law to have his permanent home. Note that a person cannot have more than 1 domicile.

In summary, a person can declare bankruptcy in England and Wales if they do not live in that jurisdiction but do live in Denmark or any other country which is not an EU member state provided, they can show they had lived or traded in the jurisdiction at any time in the preceding 3 years.

Conclusion

If you want to find out anything further about this topic then please feel free to call me on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com.

This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.