Bankruptcy

[H-S]

Hi I need general advice for a friend regarding bankruptcy.

He is about 20k in debt by credit cards and loans but also owes his girlfriend 13k. He is planning to get another loan for as much as possible to pay his girlfriend back (they are splitting up) then in around a years time go bankrupt then move aborad. Can he do this?

Also if he goes bankrupt in the UK does this follow him aborad for things like getting a bank account and a mortgage. I believe in the UK you are restricted for 6 years for getting a mortgage.

He is employed at the moment but would he have to be unemployed to go bankrupt.

Thanks for your help

[themas]

1. If he pays off his girl friend in preference to paying his other creditors (which he would be doing if he does what you describe) and goes bankrupt within 2 years of doing it the OR could attempt to undo the transaction by demanding the money back from the girl friend.

2. Also, if he gets a loan to pay her off knowing that he won't be able to pay it back and intends to go bankrupt this is a bankruptcy offence, is fraudulent and could result in prosecution.

3. If he goes bankrupt the debt to his girl friend has to be dealt with in exactly the same way as all his other debts. He cannot omit it from the bankruptcy and is prohibited from paying her anything while bankrupt.

4. He does not have to be unemployed to go bankrupt.

5. It is not possible to generalise about the effect of UK bankruptcy on finances abroad. It probably depends partly on the bank etc. used and how close their links are to UK banks etc.

[Mr Veritas]

This:~
http://www.insolvency.gov.uk/
is the Government's Official Insolvency Department,it has all the questions and anwers on going Bankrupt that you are likely to need.