England & Wales edition
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Bankruptcy and foreign issues
Fact sheet no. 45 EW Bankruptcy and foreign issues
This fact sheet tells you when you can go bankrupt in England
or Wales if you live abroad. Bankruptcy is an official order that
ends your liability for most debts after a certain period of time,
usually one year. If you are struggling to pay your debts,
bankruptcy can help you to make a fresh start. However,
bankruptcy is a serious option and it is important that you
understand what bankruptcy means before choosing to apply.
May 2016
In partnership:
with The Insolvency
Service
We would like to thank The Insolvency Service
for their help with the writing of this fact sheet.
Use this fact sheet to:
check if you may be able to go bankrupt in England or Wales when 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 in another member state of the European Union (EU)
(apart from Denmark), you can only go bankrupt in England or
Wales if you can show that your centre of main interests is in
England or Wales. There is no definition of centre of main
interests. However, the adjudicator and the court will usually
consider it to be the country where you mainly live or currently
earn your living. Your centre of main interests is in the country
people would expect to find you and where you earn and spend
money. If your centre of main interests is in another EU member
state (except Denmark), you cannot go bankrupt in England or
Wales.
Information:
bankruptcy adjudicator
When you apply to make yourself bankrupt, the
person who decides your application is known as
the adjudicator.
If you live in Denmark, Scotland, Northern Ireland, Gibraltar or outside of the European Union, you can only make yourself
bankrupt in England or Wales if you have lived or carried on a business in England or Wales at any time in the three
years before you apply for bankruptcy. A bankruptcy order in England and Wales will not be automatically recognised outside of the European Union and
creditors may still take action against you in the country you are living in (including Denmark). For more information, see
the later sections Moving abroad after bankruptcy, Assets abroad and Foreign creditors.
My Money Steps is our free, independent and confidential online debt advice service. My Money Steps will help you work
out a budget and give you a personalised action plan setting out practical steps to deal with your debts.
www.mymoneysteps.org
Freephone 0808 808 4000
www.nationaldebtline.org
Page 1 of 4
Bankruptcy and foreign issues
England & Wales edition
Fact sheet no. 45 EW Bankruptcy and foreign issues
May 2016
How to apply
You must apply online at www.gov.uk. Your application will be sent to an 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. This means that if you do not meet the criteria described in the previous section Bankruptcy in England or
Wales if you live abroad, your application will be refused. You do not have to go to a court hearing. The adjudicator will
make their decision within a maximum of 28 days of receiving your application.
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 the adjudicator 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. When the adjudicator reviews
their decision, you cannot provide them with any new information. You must give reasons for asking the adjudicator to
review their decision, but they can only consider the information you provided with your original application. 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 getting the notice
which confirms the adjudicator’s decision following your request
for a review.
Extra advice:
appealing to court
If you want to appeal to the court against an
adjudicator’s final decision, you will need extra
help. Contact us for advice about finding the
type of help that you need.
After bankruptcy
After a bankruptcy order has been made, you will need to provide the official receiver with further information. The official
receiver handles the administration of your bankruptcy. You may be asked to complete further forms or provide certain
documents. The official receiver may ask you to attend their office for an interview. In some situations, they may be happy
to interview you over the phone.
Unfortunately, these documents cannot be completed before a bankruptcy order is made, and you cannot pre­​book an
appointment for the interview. However, if you explain your circumstances to the official receiver, for example that you are
only in the country for a limited period, they may try to arrange an appointment for you as soon as possible. Alternatively,
they may agree that the interview can take place over the phone. You must provide any information that the official
receiver asks you for. If you cannot do so, think carefully about whether bankruptcy is the right option for you. Contact
us for advice.
Your trustee in bankruptcy will take control of your assets and contact your creditors. The trustee will either be the official
receiver or a separate insolvency practitioner.
Moving abroad after bankruptcy
If you go bankrupt in England or Wales and then move abroad, the country you move to may not recognise your
bankruptcy. This depends on the country that you move to.
My Money Steps is our free, independent and confidential online debt advice service. My Money Steps will help you work
out a budget and give you a personalised action plan setting out practical steps to deal with your debts.
www.mymoneysteps.org
Freephone 0808 808 4000
www.nationaldebtline.org
Page 2 of 4
Bankruptcy and foreign issues
England & Wales edition
Fact sheet no. 45 EW Bankruptcy and foreign issues
May 2016
If you move to another member state of the European Union (EU) (except Denmark), that country will recognise your
bankruptcy. This means that your creditors will not be able to take action against you there. However, there will be
restrictions on you in the country that you move to. Seek advice in that country about what these restrictions are likely to
be.
If you move to a country that is not a member of the EU, you
may need to apply to a local court to have your bankruptcy recognised. This also applies if you move to Scotland, Northern
Ireland or Gibraltar as these countries have different bankruptcy
laws. Whether your bankruptcy can be recognised in another
country depends upon whether that country has any agreement
about this with the UK. If there is no agreement in place and
your new country does not recognise your bankruptcy, your
creditors could try to take action against you there. There may
be other effects in that country of your bankruptcy from England
or Wales.
Extra advice:
legal advice
You should seek legal advice in the country that
you intend to move to about the effects of going
bankrupt in England or Wales. Contact us for
advice about how to find suitable legal help.
Assets abroad
All your assets transfer to your trustee in bankruptcy after the order is made. This applies wherever the assets are in the
world. There are only very limited exceptions to this rule.
If your centre of main interests is in England or Wales,
your trustee will usually be able to deal with any assets you
have in the European Union (EU), except Denmark.
Extra advice:
legal advice
If you have assets outside of the EU, the trustee may find it
difficult to sell them. This is because the other country may not
recognise their authority. This may mean that the trustee has 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,
Foreign creditors
If you go bankrupt in England or Wales, the following points apply.
All of your creditors in the world will be included. This means that they cannot take action against you in England or
Wales to recover the money you owe.
Creditors will also not be able to take action against you in countries in the European Union (EU), except Denmark.
However, creditors may still try to take action against you in countries outside of the EU.
If you have any assets outside of the EU, creditors may be able to take action which puts the 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. My Money Steps is our free, independent and confidential online debt advice service. My Money Steps will help you work
out a budget and give you a personalised action plan setting out practical steps to deal with your debts.
www.mymoneysteps.org
Freephone 0808 808 4000
www.nationaldebtline.org
Page 3 of 4
Bankruptcy and foreign issues
England & Wales edition
Fact sheet no. 45 EW Bankruptcy and foreign issues
May 2016
Other options
Bankruptcy is a serious option. Consider it carefully before deciding whether to apply. There are both advantages and
disadvantages to take into account when deciding. It is also important to get debt advice about all the options available to
you to deal with your debts. Contact us for advice about the options available to you.
This publication has been approved by the
Insolvency Service.
The Insolvency Service are the Government
agency that provides public services to those
affected by financial distress or failure.
National Debtline endeavour to keep our fact sheets as up-to-date as possible, however, we cannot be held responsible for changes
in legislation or for developments in case law since this edition of the fact sheet was issued.
National Debtline is part of the Money Advice Trust. Monday Advice Trust Registered Charity Number 1099506. A company limited
by guarantee. Registered in England and Wales (Number 4741583). Registered office 21 Garlick Hill, London, WC4V 2AU. ©
Copyright National Debtline 2001.
My Money Steps is our free, independent and confidential online debt advice service. My Money Steps will help you work
out a budget and give you a personalised action plan setting out practical steps to deal with your debts.
www.mymoneysteps.org
Freephone 0808 808 4000
www.nationaldebtline.org
Page 4 of 4