How Would Bankruptcy Affect Us?

My girlfriend was recently issued with a UK Settlement Visa which has approximately 2 years to run.

At the time of the application I was unemployed but was able to demonstrate a previously solid track record of employment and income. I also had quite significant personal debt, but the application does not ask about this, only my savings, and at the time of the application I had a few thousand pounds in reserve.

However, I have still not returned to work and my savings are now all but gone.

I understand that if I declare myself bankrupt I will likely be discharged in 12 months, which will still be almost 12 months in advance of my girlfriends next visa application. By this time we will have been together in the UK for nearly 6 years and her next application should be for ILR.

My concern is that if I don’t bite the bullet and act on this myself I might find the matter taken out of my hands if one of my creditors petitions for bankruptcy at a later date. If this was to happen in, say, 15 months then at the time of the ILR application I would then be an undischarged bankrupt.

Another negative is that by going bankrupt I will probably not be able to amass any savings by the time of the ILR application as any surplus income will have to be paid to the Official Receiver (probably for a minimum of 3 years).

I am also concerned about the following paragraph on the letter she was issued with her visa : ‘If at any time your circumstances change or are no longer that of when your current entry clearance was sought, you must contact the British Embassy in Bangkok or the Border & Immigration Agency without delay. This is also applicable to the sponsor of your application.’
Would a bankruptcy be something that I would have to notify them about and could her existing visa be revoked?

It may be that I am worrying unduly about this process as the ILR application may not even enquire about my credit history (the VAF4 didn’t), but one wrong move now might scupper any hope of her getting ILR when the time comes.

I wonder if anyone has been through, or considered, a similar situation. Any advice would be greatly appreciated.

Many thanks in advance.

I thought that for ILR you have to show that you can maintain and accomodate yourselves without recourse to public funds. The minimum level is about income support level. I do not think that if you are a bankrupt they would leave you both less than this! They just take all the extra money as far as I was aware, so you can eat, but not go on holiday!

You do not say if your wife works. Does she, or will she in the future do you think?

PaperPusher wrote:You do not say if your wife works. Does she, or will she in the future do you think?

She's not been back in the country for long so at this stage she isn't working.

However, I would expect her to be back in work imminently, certainly long before her ILR application is due.