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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9681
Experience:  I have been practising for 30 years.
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W - his is query to my previous question - I had

Resolved Question:

This is a follow up query to my previous question - I had asked about my husbands overseas (New Zealand) bankruptcy with respect to whether a sale could be forced on our UK flat. I was told that there are agreements between the countries, but that The Administration of Justice Act 1920 doesn't extend to bankruptcy. Therefore a sale couldn't be forced. I think I have found a copy of this document online and wondered if you could direct me to the relevant section(s) which states this? Is one of the following, the right document?
http://www.legislation.gov.uk/ukpga/Geo5/10-11/81/contents
http://www.legislation.govt.nz/act/public/2006/0055/latest/DLM385299.html
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.
A debt in New Zealand can be enforced in the United Kingdom provided it has been registered in New Zealand within 12 months from the date of the judgement in respect of an Administration of Justice Act country which includes New Zealand. The enforcement of foreign debts does not just apply to EU countries. There may be practical difficulties because of the distance involved but legally, they can be enforced.This is probably the best link I have found that shows which countries debts are able to be enforced in the United Kingdom.http://www.out-law.com/topics/dispute-resolution-and-litigation/enforcement/enforcing-england-and-wales-judgments-abroad/if you go to the bottom of the page where it says Other reciprocal arrangements you can read this for yourself.Bankruptcy and forcing the sale of a house 2 different things. It would be possible to enforce the New Zealand judgement in the United Kingdom in a variety of ways including applying to court for a charging order to register a charge against the house. Depending on the value of the house, it would then be possible for the creditor to apply to court for an order for sale, for the house to be sold.If there is a mortgage on the house it would be paid off first and then, the judgement debt charge would be paid off later.Can I clarify anything for you?
Customer: replied 1 year ago.
Thank you - I see in that section that New Zealand falls under The Administration of Justice Act. As stated in my question, which was a follow up (maybe you can read that?) - anyway, I was told previously that reciprocal arrangements with that agreement didn't extend to bankruptcy and the Official Assignee wouldn't be able to force the sale of property. Are you telling me that the previous lawyer wrong? I was wanting to know what section of The Administration of Justice Act, that the lawyer was referring.
Customer: replied 1 year ago.
Just to add, you've confirmed what I already knew, which is good / fine - but my question was specifically in relation to The Administration of Justice Act 1920 in respect of my first question.
Expert:  F E Smith replied 1 year ago.
It doesn’t extend to bankruptcy but it will not stop them getting a charge against the house and applying to court for an order for sale. To do that, a person doesn’t have to be bankrupt.If they make a person bankrupt they are likely to be worse off!
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