Debt questions from around the world, helping each other by giving and receiving advice on UK based debt.

Moderators: TalbotWoods, JaneClack

By foreign
#326663 Hi
I was part-owner in a limited company in Sweden that was made bankrupt. I had underwritten start-up loans for the company. The company was made bankrupt and I was left with the debts. The other owners don't have any money and refer to me. There were no remarks on the bankruptcy and owing money is not a criminal offense in Sweden. I now want to go back home to the UK and wonder if these debts can be collected in the UK? There are some assets in the company which are being sold, and they should probably cover it. I asked the lawyer and he said they wouldn't do anything in the UK, but I am worried that I just bring the problem back home to the UK.
Do you know what the rules are?
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By TalbotWoods
#326683 Ah, not straight forward I am afraid.

Firstly Swedish bankruptcy Laws, (though they have a lot of commonality) differ from other European countries laws, so allow full cross boarder legislation, others restrict them to their country only.

Some allow the Bankruptcy to be recorded against an individual in all European Countries others do not.

However, the key thing here is that this is a bankruptcy of a Limited Company, which means the company went under not you. If you had personal guarantees in place then these will now be treated as any other unsecured debt, and yes they can chase you, BUT ONLY under Swedish law, which I beleive makes it difficult for them to seek repayment if you are no longer resident in Sweden.

It is impossible to give a 100% answer because laws change, recipricol agreements change, and ethics change, but at present it is unlikely they would pursue a Swedish debt in the UK.

I see you have done what we would suggest and have taken advice form a legal professional, and I see they concur.