I'm currently in an IVA and have paid off my first year. Because of personal reasons, I feel that it's better for me to return to my country of origin. Obviously I'd make arrange to pay for my IVA even though I'm overseas. However, in the event if I have to file for bankruptcy in the UK, does anyone know if this bankruptcy will affect my credit rating in Australia?
What are the chances of the creditors reducing the monthly payments considering that the amount I'll be making in Australia will be less and not forgetting the exchange rates? I'm desperate to go back since my current employer is making life hard for me as I have a little child and have no family here in the UK. Entire family in Australia. Do you think the creditors will be understanding at all?
I would discuss this with your I.P and see what they believe your options are. Eventhough in theory it seems like it could be possible and that a monthly IVA payment can be made, will it be sustainable for the next 4 years.
Bankruptcy in the UK should not affect your credit rating in Australia, as I doubt that they have communications with each other. However if you are asked on forms if you have ever been bankrupt, I would think that you would have to say yes.
Creditors will be fine - I have a couple of clients who pay their IVA from Australia with no bother at all.
As to the effect of a UK bankruptcy on your Australian credit rating, you would need to make enquiries over there, or maybe Storm could advise is whether there is any sharing of credit information with other countries.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.