How Would Bankruptcy Affect Us?

[Lottie79]

My girlfriend was recently issued with a UK Settlement Visa which has approximately 2 years to run.

At the time of the application I was unemployed but was able to demonstrate a previously solid track record of employment and income. I also had quite significant personal debt, but the application does not ask about this, only my savings, and at the time of the application I had a few thousand pounds in reserve.

However, I have still not returned to work and my savings are now all but gone.

I understand that if I declare myself bankrupt I will likely be discharged in 12 months, which will still be almost 12 months in advance of my girlfriends next visa application. By this time we will have been together in the UK for nearly 6 years and her next application should be for ILR.

My concern is that if I don't bite the bullet and act on this myself I might find the matter taken out of my hands if one of my creditors petitions for bankruptcy at a later date. If this was to happen in, say, 15 months then at the time of the ILR application I would then be an undischarged bankrupt.

Another negative is that by going bankrupt I will probably not be able to amass any savings by the time of the ILR application as any surplus income will have to be paid to the Official Receiver (probably for a minimum of 3 years).

I am also concerned about the following paragraph on the letter she was issued with her visa : 'If at any time your circumstances change or are no longer that of when your current entry clearance was sought, you must contact the British Embassy in Bangkok or the Border & Immigration Agency without delay. This is also applicable to the sponsor of your application.'

Would a bankruptcy be something that I would have to notify them about and could her existing visa be revoked?

It may be that I am worrying unduly about this process as the ILR application may not even enquire about my credit history (the VAF4 didn't), but one wrong move now might scupper any hope of her getting ILR when the time comes.

I wonder if anyone has been through, or considered, a similar situation. Any advice would be greatly appreciated.

Many thanks in advance.

[QED]

There are many alternatives to bankruptcy, it depends on the debts you have, security, and terms. I am an ex-bank manager and would be happy to give you some pointers if you want to PM me some details of the debts. (I am not working anymore, just trying to help.)

As far as that affects your original question remains to be seen; bankrupt, IVA etc

Edit// Copied all the original

Edited December 21, 2008 by QED

[Lottie79]

if you want to PM me

PM sent.

[Lottie79]

Just bringing this back up as a lot of people probably missed the thread over Christmas and New Year.

Any advice or general thoughts would be much appreciated.

[7by7]

I'm not sure what advice you want. This is an immigration forum, not an insolvency one. However, have you considered an IVA* instead of bankruptcy?

As far as your wife's current and future status in the UK is concerned, the maintenance rule is that you should be able to support yourselves without recourse to public funds; although you can claim for yourself, just not any extra for her.

If you can do so and service your debts, whether bankrupt or not, then you will have fulfilled this requirement.

* I am not endorsing the website this link will take you to, merely using it as an example of what an IVA is and how it may help you. You should seek you own professional advice before deciding how to proceed.

[Lottie79]

I'm not sure what advice you want.

If somebody was to know that, for example, a bankruptcy at this stage would almost certainly mean that she would have no chance of ILR in two years (or vice versa), then that would be instrumental in terms of whether I should make that decision now.

Alternatively, if somebody had experience of applying for either ILR or a Settlement Visa while under a Bankruptcy, IVA or debt management plan I would be very interested in the outcome.

This is an immigration forum, not an insolvency one.

I do understand that, although Insolvency Practitioners tend not to have a great knowledge of Immigration requirements so obtaining advice on both issues in conjunction with each other is proving very difficult, hence the post.

However, have you considered an IVA* instead of bankruptcy?

I have considered an IVA although at this stage I am not in employment, therefore I wouldn't be able to demonstrate that I qualify.

Even an IVA would take all my disposable income (as with bankruptcy) and there would still be the possibility that it would fail (leading to bankruptcy) before the ILR application was due.

[DC1066]

Despite (some) unhelpful comments - it is a difficult one, because it does cover both immigration and insolvency issues.

Don't know if I'm supposed to mention other forums, but trying to help, a very good forum for dealing with debt issues is Moneysavingexpert.com/forum. They have lots of different forums, but a couple dealing specifically with debt. This should cover the bankruptcy side and hopefully between here and there, you should get some help.

The other option is to ring up the appropriate govt dept and ask the questions directly. If you are concerned about raising potential problems, then just do it anonymously.

Good luck with it all.

[CharlieB]

Lottie79, we got my wife's FLR through this morning. There was some info in it, which include a telephone number for immigration enquiries. You could phone up, not give any personal details etc. and ask them straight out if a bankruptcy would affect your application in a couple of years time. The number for Immigration Enquiry Bureau is 0870 606 7766.

[7by7]

Lottie79, I am sorry if my previous post caused you offence, and looking at it again I could have phrased the opening much better.

As I said, when you apply for her ILR, whether you are bankrupt, have an IVA or some other arrangement with your creditors will not really matter. As long as you are servicing your debts and have enough left to live on. Also, as I said before, whilst she is unable to claim or recieve public funds, you are, as long as you do not recieve any extra due to your marriage.

You said

My concern is that if I don't bite the bullet and act on this myself I might find the matter taken out of my hands

Believe me, the longer you leave it the worse it will get. You should seek advice on this now. Your local CAB would be a good place to start.

Having said I'm sorry for offending you, I'm probably going to do so again; but this next bit, I feel, needs to be said.

You do not say how long you have been unemployed, but, based on what you have said, I would guess it's been some time.

I appreciate that the current economic situation means finding work is not easy, but how hard are you trying? Maybe you are being too picky? Perhaps you should set your sights a bit lower.

I, too, was unemployed when I first met my wife, having quit my job to travel abroad for a lengthy period. this travel used up all my savings.

So when I returned to the UK instead of waiting for a 'good' job, such as the one I had before, I was willing to take any job that would have me, regardless of what it was. I actually spent 2 years pounding the streets as a traffic warden before finding the job I actually wanted.

What I am saying is that, even in these times, there is work out there. It may not be what you want and it may not pay much, if any, more than the minimum wage. But it's better than your current situation, and will do until you can find something better.

I have not said all that to criticise or otherwise demean you. As you said yourself, you need to bite the bullet and sort yourself out.

Edited January 6, 2009 by 7by7

[jamesacheson]

You should seek advice on this now. Your local CAB would be a good place to start.

A lot of advice. Like '7by7' says, you should speak to a government source like the Citizens Advice Bureau first before you make any big decisions. There are all kinds of insolvency, and debt management & consolidation companies out there. I was on iva.net and found that very useful too. Start with the CAB though and then go from there. Hope that helps & best of luck!