It seems nowadays with the world becoming smaller and smaller, people are moving all around the globe due to employment opportunities and for warmer climates.

With this new found sense of space and travel, comes a few challenges along the way.

One challenge is maintaining ones personal finances from abroad, in particular New Zealand.

As a British Citizen, you can move about freely in many parts of the world, and if you desire, move to any of these countries to reside. But what about any debts you have that are based in the UK?

The first and easiest route is to just continue to make the payments to the debts until they are paid in full. Simple enough.

However, with the exchange rates changing on a daily basis, and the strength of the GBP, for some this proves difficult. If you retire off to a sunny warm place and take your pension with you, can you still service the debts you may have in the UK based on what your expenses will be? Possibly if your pension is in GBP, but what if you move and are now paid in another currency? And the exchange rate favours the Pound?

In the past the Pound has been strong, and so the exchange rate for many currencies to Pounds, is high and it continues to be that way, however it is changing some.

So let’s say you cannot earn a sufficient wage to cover your expenses in that wonderful other part of the globe, and service your UK debts, then what?

One option is to look at a Debt Management Plan, making payments of what you can afford each month. These payments would be in Pounds as I don’t think your UK creditors will accept some other countries currency.

Another option, if you feel you cannot afford much each month towards the debts is bankruptcy. There are a few conditions for this. If you are residing outside of the UK, and in a NON-EU country, you have three (3) years, from the date you have moved to file for bankruptcy back in the UK.

So what that statement is saying is this, you have a three (3) year window of opportunity to file for bankruptcy in the UK, while you are living outside the UK.

Rather than head back to the UK to petition for bankruptcy you can appoint Myvesta UK to do this for you as it is filed in the High Court in London or you can come back and file the petition yourself in the High Court.

The time-frame here is fair, but it is something to be aware of.

What if you fall outside the three (3) year window, then you would need to consult a local solicitor or expert in insolvency laws for that country to inquire what their rules and regulations are. In many instances, you cannot go bankrupt, so the debts in the UK remain in the background and loom.

Also, what if you own property abroad now and do file for bankruptcy in the UK? This is a statement from the government’s insolvency web site:

Any asset in any part of the world would be classed as an asset in a bankruptcy in England and Wales. There is now widespread co-operation in many countries in the world between courts exercising jurisdiction in relation to insolvency, including all EU countries. This means that the OR or trustee in bankruptcy would be able to sell property abroad that is owned by the bankrupt.

I would point out that if the person who is going bankrupt lives permanently in the EU country (apart from Denmark) in the property and has no financial connection with the UK apart from debts, the person would not be able to go bankrupt in the UK.

While this statement does not say New Zealand, one cannot second guess the Official Receivers in these matters as to their authority or what they may or may not do. This is why it is always smart and always the best solution to get professional advice in going bankrupt in the UK from abroad.

If you are a UK citizen and now living in New Zealand and want to go bankrupt in the UK, just ask us for help.