Questions you have before making a decision to go Bankrupt and the Bankruptcy process

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ByButts
#472672 As the new Scottish System only came into effect last April do you have any anecdotal evidence of anyone who went belly up whilst unemployed and subsequently did their year to be discharged then got a job and was subject to make payments thus amending the "nil contribution" IPA to a "paying one"

Hope you don't mind I am checking this on CAG as well !!!
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ByJaneClack
#472675 No I do not know. This has not come up before for me as you probably realised when I went back to check!

There will be few I would think as most people going bankrupt do so as they have little reason to believe their circumstances will improve. Let me know the CAGgers response as if anyone has tried it they will know.
ByButts
#472676 Jane it can be so frustrating trying to get anecdotal evidence / case studies from Scotland. Even CAG is not that hot in relation to Caledonia. I posted at 1030 am and at the time of writing have had no reply.

Is there any other site that is say just for Scottish Debt that you are aware of ?
ByButts
#472678 I've been thinking about something you said in an earlier post which would possibly enable me to go bankrupt in England but remain in Scotland.

If you have to be resident in England for six months in the last three years to go Bankrupt there would it be possible to carry out a theoretical move. I could switch the electoral role to my Sons flat and change the address on all my correspondence for six months. This would not cost me anything and I could maintain my flat in Scotland. There is nothing to say you can't "live in England" whilst maintaining a flat in Scotland.

Can you see any flaws in that and is there anything else I would have to take account of. Reason for the subtefruge is to avoid an IPA.
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ByJaneClack
#472679 I cannot comment or encourage any subterfuge like this Butts - anyone can read this forum!

I should say you would have to put down previous addresses too!
ByButts
#472680 I get the hint !!!

No joy on CAG yet, it is quite shocking how little anecdotal evidence is actually available for people who wish to read about others experiences and hopefully garner some insight.

Theres plenty of theorising and hearsay but very little in the way of real accounts of sequestration or indeed bankruptcy.
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ByJaneClack
#472681 That is because it is recent - they will build if a problem for many in a couple of years when people forget why they went bankrupt in the first place!
ByButts
#472707 Hi I'm Back.....

Have been doing some further research on ways of going Bankrupt in England whilst living in Scotland .

"Centre of Main Interest" is popping up a lot. Some opinion seems to indicate that if you have worked in England for the required period (3 Months + 1 day) or 6 months according to some , you can have your main address in Scotland during this period and after and still be eligible to go Bankrupt in England.

If this is correct I could tx down to England and work for the required period (whatever it is) living rent free with my ex-wife or son incurring no extra costs and keep my base in Scotland. After the qualifying period back up to Scotland for a year in a low paid job or on the dole and no IPA !!

What I am really asking is what I have to do in order to be able to go Bankrupt in England next October without giving up my flat or residency in Scotland.
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ByJaneClack
#472708 Oh Butts!! :lol:

Right you move down to England and live here for 6 months as you have to have lived in England for 6 months in the last three years. What are you doing with the property in Scotland - how will you pay for that or will you just move back and then find somewhere else to live? You can hardly put the household expenses into the bankruptcy as they will show you live in Scotland.

So, and you rely on no-one else seeing this post and letting anyone know - you apply for bankruptcy online in England and have your interview with the Official Receiver - could be over the phone but they can call you into the office. And they ask you questions - to which you reply truthfully.

You get your bankruptcy order and for the year of your bankruptcy you inform the OR/Trustee of any changes in circumstances and then move back to Scotland when discharged. Sounds simple - but will your ex be happy for you to live there rent free - won't you have more expenses? The biggest problem is retaining the place in Scotland and paying for it. Move completely for a year and after 6 months go for bankruptcy and then return to Scotland and inform the OR of the change in circumstances and you should be OK as people often move after going bankrupt.
ByButts
#472709 So if in order to go Bankrupt in England you have to be resident there for at least six months in the past three years does that mean that you don't have to actually to be living there at the time of Bankruptcy ?

In other words provided it has been your domicile for the required 6 months you can go Bankrupt in England from a Scottish Address.
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ByJaneClack
#472710 I think the OR would think it very iffy as he might think you had just gone to live in England for 6 months to work the system - which is what you would be doing.

Scotland is a member of the EU but comes under United Kingdom at present so EU rules do not apply - you can read up on those on Google!
ByButts
#472711 I can't see why the OR would think it was suspicious behaviour as outwardly it would appear if anything I am financially disadvantaging myself by having to pay three times the upfront cost that would be incurred in Scotland. They are not to know that my intention is not to work in the period after the award until discharge. If you have to be resident in England at the time of the petition rather than have lived there for 6 months in the last 3 years surely it would state that.

I have lived in England for 40 of the last 46 years and 95% of the debts were incurred whilst I was resident in England.

With regard to "Centre of Main Interest" the EU Regs are clear...

41.66 Change of COMI - A debtor may change their COMI at almost any time and for self-serving reasons - for example to take advantage of a more favourable insolvency regime, but crucially the relocation must be real and must be effected prior to the presentation of the petition.

Now if this applies to citizens of other EU Countries I can't see UK based individuals will be treated any less favourably.

Scotland is not a member of the EU in it's own right but the United Kingdom is and as a constituent part of the UK that is where it's membership arises from.

I think what is confusing the issue is the separate Legal Systems.
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ByJaneClack
#472713 But you live in Scotland now and have done for the last three years so you would have to be resident in England and have satisfied the residency status to apply for the bankruptcy - once you have satisfied the residency status you do what you want to do.

I cannot advise further on this Butts - check with an adviser in Scotland and see what they say.

Forgive me but I have forgotten why you want to apply for bankruptcy in England rather than Scotland as it is cheaper there - will need to check through threads.

Ah yes, the IPA thing - did you get a reply from the CAGgers?
ByButts
#472714 I am quite disapointed by the response on CAG - the whole scenario seems beyond their comprehension as I have had little in the way of guidance. The minute you add a "Scottish Dimension" a lot of them seem to be completely lost.

The whole crux of my argument is that in theory in order to go Bankrupt in England a six month residency in the past three years is required. No where does it say that you actually have to be living there at the time of your petition as long as the "six months in the last three years" has been fulfilled.

Following on from this I can see no reason why you could not go bankrupt in England whilst living in Scotland provided you have the "six months residency in the last three years" under your belt.

Is that not a logical interpretation of the rules ?

Sorry if you feel unable to assist me any further and thanks for your advice so far.
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