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UK Insolvency Laws: Post Brexit

I should preface this with the statement, if we do leave the EU.

There seems to be so much speculation as to if there can ever be an agreement with the UK leaving the EU, and sorting out all the details. Much is up in the air. There is even the very real possibility of elections and referendums as the PM has stated she will step down soon. Then we have a new political party, the Brexit Party, tossing its rhetoric about.

Throw in the fact that EU nationals living and working in the UK now have to apply to get EU settlement status here in the UK, even if they have lived here most of their lives, and it all gets confusing.

Want to be confused even more….when initially rolled out the EU Settlement Scheme had a fee attached to it of £65 per application for those age 18 and older, and a fee of £32.50 for those age 16 and under. And yes, all children are required to have settlement status as well.

Then the government scrapped the fees, giving refunds to those who already paid the fees.

Confused yet?

So one question on some people’s minds is how Brexit may affect our insolvency laws here in the UK???

The fact is if this has been addressed by the government, I think we have seen or heard very little about it. The fact it the changes may be minimal and only to affect debts outside the UK.

To speculate and look at this question in a Mr. Spock logical manner, it is best to begin with how our insolvency laws operate now, and in particular, how our insolvency laws relate to and affect debts outside of the UK.

Just leaving the EU should not affect how a UK citizen, or someone residing in the UK and meets the residency requirements, makes use of the insolvency laws, or will it?

More speculation.

Currently How UK Insolvency Laws Interact and Relate to Debts Outside the UK

Currently if you are eligible to go bankrupt in the UK, you can include any debts you may have from anywhere in the world, the EU, America, UAE, anywhere.

You can even go bankrupt in the UK, from outside the UK, again if you meet the requirements.

So you can move out of the UK, live in another country, return to the UK, and include those debts in a UK bankruptcy, however, remember for now the UK and EU have open agreements, and certain collection practices and policies in lace to allow the collection of EU or UK debts in our respective countries.

These agreements do not extent to other countries such as the US, UAE, Canada, etc.

If you go bankrupt in the UK and include debts from the EU, UAE or any country, the protection afforded you by your UK bankruptcy only protects you in the UK, and for now the EU.

So if you owe money in the UAE and include it in a UK bankruptcy, the UAE banks cannot force you to pay in the UK and for now the EU. This does not limit their authorities in their own country, and possibly others.

But you are protected here in the UK, and for now the EU.

For now.

Once the Brexit is final, while you may be able to include EU debts in a UK bankruptcy, your bankruptcy protection may only be in the UK, and not the EU as it is currently in both.

Confused???

Unless something is written into the agreement to leave the EU, and the EU agrees to it, any debts in the EU would be treated just as a debt in the USA, UAE, Australia, or any other country outside the UK.

The UK and EU are no longer one under the agreements, once we fully exit, that changes.

Or will it???

So far no releases from the Government’s Insolvency Service as to how the Brexit may affect things, from an insolvency and bankruptcy standpoint.

However, there have been a consensus among some that the regulation changes regarding deal or no deal, will force some changes.

And I am only discussing personal bankruptcies here, for businesses and companies that operate in both the UK and EU, there can be larger and more complicated issues.

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
 
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”https://www.paydaybadcredit.co.uk/direct-lender/” data-mce-href=”https://www.paydaybadcredit.co.uk/direct-lender/”>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html” data-mce-href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html”>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”https://www.gov.uk/county-court-judgments-ccj-for-debt” data-mce-href=”https://www.gov.uk/county-court-judgments-ccj-for-debt”>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.