Question

I am being threatened with being made bankrupt over a debt I left in Dubai.

I left Dubai 3 years ago when I lost my job, which means I lost my Visa to stay there. I had a loan I took out and also a credit card in Dubai. Now a loan collector here in England is stating they are collecting the loan and are going to make me bankrupt.

Can they do this?

I own my own house here, and share it with my partner.

I need to know where I stand with this??

Can you advise?

Jeremy

Answer

Jeremy,

Without more details and information, it is difficult to properly advise you, but I can give some general advice and answers.

Debts/accounts in other countries are sold or assigned to collection agencies in the UK to be collected. They can be collected here, but must be collected in accord with UK rules and laws. And one of those collection tools is to make someone bankrupt.

However, in order to make someone bankrupt in the UK, you need to owe them £5,000 or more, and they will need to pay the fees to make you bankrupt, currently £680.

How much do you owe for the account the collection agency is threatening bankruptcy?

If it is over £5,000, the threat of bankruptcy could be real, and if the collection agency knows you own property with equity, the threat could be more real.

In bankruptcy, a property is considered an asset and could be taken and sold to pay the debt. However, only your portion of any equity can be taken if you own the property with your partner.

I hope this helps, and any additional information will help to advise you further.

Regards,

Jon

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