Assuming your debts are above £5,000 and there are no issues concerning residency and you are not already in an alternate debt solution such as an Individual Voluntary Arrangement (IVA) or Debt Relief Order, then no.
We’ve heard of cases where a bankruptcy was refused because a person was not insolvent, but this is rare. For example, if a person earns £25,000 and their debt level is just £4,000, then it might be refused on the grounds that an alternate debt solution might be more appropriate.
One of the biggest obstacles for those who might have recently moved to the UK is proving that a person’s Centre of Main Interests (COMI) is in this country. The Adjudicator in Bankruptcy has taken the place of the old-style County Court Judge and his role is to assess whether a person is here to stay or simply taking advantage of the more lenient Insolvency Laws in the UK.
Provided a person has been in the country for more than three months and can provide evidence of a tenancy agreement, a local bank account, being registered with a doctor and being on the local Council’s electoral role, there should not be an issue. There are other hoops to jump through, but call us for these.
There is one last possible issue: a standard question now being asked whether a person has taken professional advice in opting for bankruptcy and it might not be allowed to proceed if the answer is no. But by and large, most bankruptcies are accepted – we have not had a single case rejected in nine years.
‘Could I be refused Bankruptcy’ is just one of hundreds of questions we’ve answered over the years, but feel free to call us on 01425 600129 if you need to know more or specifically need bankruptcy help. Our staff are ex-financial services and have the experience to get you the best result every time.