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1. Dear Gene, where are you resident? Do your liabilities exceed your assets? If the negative equity from this property in Ireland is taken into account, will your assets, in both Ireland and the UK, be insufficient to pay your liabilities? Are you worried about being followed for the negative equity debt in the UK?
2. Dear Gene, you have the choice of going bankrupt in Ireland or the UK. This is because there is an EU wide insolvency system where you can go bankrupt where your "centre of main interests" is based. Here, as you live and work in the UK, you can go bankrupt there and also, if you wish, you could go bankrupt in Ireland because there is where you originate and where your debts are based.
2. Be aware that if a judgment is obtained in Ireland, it can be enforced in the UK. So, this negative equity issue will be left hanging by the bank, in the hope, that either one of two things happen. Either you become profitable again in the UK and pay them off or the value of the property in Ireland rises so there is no longer any negative equity. If I may say so, 240k is not a large sum in the scheme of property development.
3. If you go bankrupt, you will not be able to be a director of a limited company in the UK. However, you can still remain shareholder. So you could have your wife as director and you could be the majority or 50% shareholder. Once you are discharged from bankruptcy, you could then take up a directorship again.
4. Be aware that the reason you haven't been able to reach a resolution with the bank in Ireland is that your prospects might improve. They won't write such a small amount off as they take the view that you are perfectly capable of earning this sum quite quickly should your fortunes improve.
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