If you’re living abroad and end up bankrupt, the country you’re in might have a very tight (and by tight we mean long) process in place for dealing with your situation. If this happens you don’t have to subject yourself to their practices as you may still be able to declare it in the UK. Here are some ways in which you can sort out your problems back home.
If you’re living abroad you can declare in the UK just as long as you show that your business is centred or founded there. A very popular example of this has been private bar owners in holiday destinations who have had their business go under. They’ve been able to go back home and declare in person.
The Denmark Rule
There is one place you should never ever consider going bankrupt: Denmark. It is the only member sate of the EU which does not adhere to the EC Regulation On Insolvency Act. This means they don’t let anyone declare their bankruptcy at your ‘centre of interest’ i.e. you can’t say you’re bankrupt in the UK if it happened in Denmark.
This isn’t someone representing you but those who you’ve been taking credit from. If you declare in the UK there are no restrictions in place for any company worldwide to prohibit them from claiming back. This means that if you had a creditor in a foreign country, they can go to their court and start action against you as their court won’t have any jurisdiction to stop them abroad (home for you).