How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Buachaill Your Own Question
Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10623
Experience:  Barrister 17 years experience
53108719
Type Your Law Question Here...
Buachaill is online now

I left HK in Debt and now struggling to pay it. Here are my

Resolved Question:

I left HK in Debt and now struggling to pay it. Here are my questions:
If I do not pay will this affect my credit score in the UK?
Are the UK and HK banks connected in any way?
Can they take any legal action via the UK?
Can they go after my assets in the UK if I declare myself bankrupt in HK, do I need to declare my UK assists if bankrupt in HK?
Submitted: 2 years ago.
Category: Law
Expert:  Buachaill replied 2 years ago.
Buachaill :

1. Firstly, banks and credit reference agencies operate nowadays in many jurisdictions and assimilate credit scoring across many jurisdictions. For example, HSBC and Standard Chartered banks have large banking offices in both HOng Kong and Great Britain. Accordingly, credit reference agencies, such as Experian operate in both jurisdictions and assimilate credit records for people moving between the two countries. Accordingly, if you fail to pay debts in Hong Kong, this will show up in your records in the UK if you move there. The trend is towards globalisation, so your HK credit scores will impact upon your scores in the UK. Additionally, you can be sued in GB for any HK debt you owe as any creditor can follow and pursue monies owed in another country. So you always run the risk of being sued if you owe money abroad.

Buachaill :

2. Secondly, if you go bankrupt in HK, you will need to declare all your assets worldwide as otherwise, you will not get a good discharge from the bankruptcy as it can always be reopened if it was found you were hiding your UK assets from the HK bankruptcy courts. Accordingly, I would advise you to only go bankrupt if you intend to declare all your assets as otherwise you simply run the risk of prosecution for fraud. You are better off not use bankruptcy if it is going to turn bad.

Customer:

I appreciate that it may affect my chances if my debt is with HSBC or Standard charter in HK and i use a UK subsidiary. However, my question was more are the general credit scores used nation wide effected.

Customer:

Also i am not asking what the trend is, i am asking what is in place at the moment. As far as i can see from speaking to Experian and banks directly, the two are not currently conected.

Customer:

My HK debt has not shown up on any UK check and I currently have a high credit score.

Customer:

I was not suggesting i did not declare my assets, I was asking if I had too and if it was connected. For example. In HK I lost my job and could no-longer work. I couldn't get a visa and needed to leave the country.. That on its own is reason for bankruptcy? In the UK I have a marginal amount of equity in my flay (which doesn't even cover the total debt). My worry is they will take my home and force me to rent (which I can not afford as mortgage monthly payments are half the rental payments)

Customer:

I was looking for more legal answers regarding the current laws around my question.

Customer:

I was looking for specific laws that cover protect the lender and/or me?

Customer:

Can you help provide the specifics?

Buachaill :

3. Your general credits scores used nationwide in the UK will be affected as there will be an event of default, albeit in HK. Until you default, such as by non payment, your credit scores will not be affected. Hence the current good scores. Secondly, it is an offence of bankruptcy if you don't declare all your assets. Accordingly, you do have to declare all your assets if you go bankrupt in HK. Otherwise you risk prosecution for defrauding your creditors. This is a rule of bankruptcy in both HK and the UK. Finally, this is a question in the UK law section. If you want the specific HK sections you will have to ask a HK law question. The relevant provisions in the UK are s.436 Insolvency Act, 1986, which defines a bankrupt's "property" widely to include all assets. Rule 6.125 & 6.126 of the Insolvency Rules 1986 which allow for the postponement of discharge if the bankrupt has not co-operated or hid assets. A bankruptcy Restriction Order can be made extending the period of non discharge from 2 years up to 15 years under the Enterprise Act, 2002. There are also criminal offences in the Schedule to the Insolvency Act, 1986, which have general application to fraudulent bankrupts which allow for penalties up to 10 years in jail.

Buachaill and other Law Specialists are ready to help you