Good Morning, I live in Spain and have done for about 12 months now. I am now unable because of unemployment here to continue paying my debts in the Uk. I have contacted Payplan companies and they inform me that I am not eligible to an IVA because I now have no income or savings. I have offered my 5 Creditors on advice to pay £5 per month if they agree to reduce my debts to £300 each. My debts total £45k. I have a part share in a property abroad which is now in severe negative equity. Any Advice would be appreciated. I am considering Bankruptcy but am unable because of finance to return to the Uk. I have informed all creditors of my address abroad but my parents at the address I was using for correspondence in the Uk are now getting phone calls etc.
with no funds available the only way for you to declare bankruptcy is for you to pass a Lasting Power of Attorney to a relative or friend and for them to go through the bankruptcy process here in the UK, on your behalf.
If you cannot afford to travel to the UK to declare bankruptcy yourself then equally you will not be able to afford the fees for a professional to do it for you.
As far as the lenders contact etc, write to them again confirming that you are no longer of the address they continue to contact and reminding them of your current contact details.
In the letter you should remind them that for them to continue to write or telephone the iold contact address is a criminal offence under section 40 of The Administration of Justice Act 1970.
To pass power of attorney to a 3rd party, whoever they may be, costs £150 approx and your bankruptcy fees will be £507 at the High Court.
If you cannot fund these costs you are in a catch 22 situation and little if anything will change.
I believe the situation is slightly different if one lives in the EU. The Insolvency Service will - as I understand it - insist that you petition for Br in the EEC country you reside in. The challenge with Spain is that there is really no personal insolvency position.
Paul Johns Assisted Bankruptcy Specialists Reviva UK
Thanks for the replies. Still obviously receiving letters etc. Do I have any other option to stopping this other than to return to Uk and declare myself Bankrupt ?
If I do so will this cause me any further problems at the time ?
Can I do it on a flying visit so to speak ?
Also what address would I use ?
I have heard that if you use a relatives address sometimes this address gets linked to them and they then have problems in the future ?
Good Morning,I live in Spain now unable to pay debts
Posted - 31 December 2008 : 13:23:29
