I work in the states would I qualify for an IVA?

[richard.od]

I have recently moved to the USA but still have some debt in the UK. I am a UK citizen born and raised. I work in the states and wonder if I would qualify for an IVA?
Thanks
Richard

[pbeck]

Richard

Yes, you should still be able to undertake an IVA if you remain UK domiciled, I can't however say whether, if you had any US debt, that the IVA procedure would be recognised in the US.

When did you move to the States ? Are you intending to return to the UK in the future ?

[MelanieGiles]

The test is whether you can claim to have a centre of business interests still in the UK - and if all of your creditors are still over here then this is possible.

[pbeck]

Melanie, perhaps I am wrong, but I thought that the "centre of business interests" test only applied to those applying for insolvency proceedings while working/residing in an EU country, otherwise the more general test in SEction 265 IA1986 would apply ?

I await to be corrected.

[MelanieGiles]

I believe that cross-border provisions apply to ex-pats who retain UK passports, and have successfully presented on this basis in the past in accordance with legal advice. I'm sure that there is some case law on this, and will try to dig it out when I am back at my desk tomorrow.

[abc]

The legal advice I received not too long ago was that the test was similar to bankruptcy. simply they needed to be living in the UK during past six months, even if they are no longer living in the UK.

Also, it depends on whether they have any interest or assets in this country.

[richard.od]

I have been in the states for a little over 4 months and have a British Passport, drivers license etc.... So hopefully that will help. I was also wondering does the IVA cover student loans?? Thanks for all your help!!
Richard

[pbeck]

Richard

OK whatever the situation about the technical argument above, as you have resided in the UK within the last 3 years (I presume England, Wales or NI rather than Scotland which has different legislation ?) you can do an IVA.

The other good thing is that while student loans are specifically excluded from bankruptcy, they can be included in IVAs.

[MelanieGiles]

You should be aware that if the student loan has an influencing vote - ie more than 25% they will most likely reject unless you are offering a very high dividend. 90p in the £ has been quoted before now - which effectively negates the need for an IVA in the first place.

[richard.od]

I am not too worried about the student loan to be honest with you it is more the bank loan that I have that it causing the headache at the moment. Yea I lived in London for the past 2 and a half years and then 4 years in Gloucester. Is there a minimum amount of debt that you need to have to qualify for an IVA?
Thanks for all your help
Richard

[MelanieGiles]

Most insolvency practitioners will not recommend an IVA as a solution if your debts are lower than £15,000, but this is not set in tablets of stone - and there are other criteria points to take into account as well as the level of debts you have. It is probably now best to speak to an IP firm with experience of dealing with UK citizens working abroad to get more fuller and rounder advice as to your options, and the advantages, disadvantages and implications of each one before proceeding.

How long has your current work permit in the US been granted for?

[richard.od]

I recieved my permanent residency card (green card) last June. I have been working in the USA for 3 mths. It is just killing me what with the dollar to the pund at the moment. Every bit of debt I am trying to get rid of is costing me twice as much!! I am desperate to find a solution. Thank you so much for your prompt responses it is really appreciated!!
Richard

[MelanieGiles]

Richard

How much do you actually owe to unsecured creditors, and do you have any assets remaining in the UK?

[richard.od]

I have a student loan for around 12k but like I said I am only paying minimal amounts on that and so can handle that. I also have a bank laon for 14k that is costing me 365 a month. I don't have any assests in the UK.
Thanks
Richard

[MelanieGiles]

If you only have two creditors, then an IVA is not going to be a solution for you Richard. I think that your best bet is to arrange a chat with the bank concerned to see if you could reschedule your payments to a more affordable level. Bankruptcy would also be a rather extreme option, especially as it would not release you from the student loan.