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Bankrupt ACA

  • 05-04-2011 2:49pm
    #1
    dogscatsflower
    Closed Accounts Posts: 2 ✭


    Hi I'm hoping that someone here might be able to help me.

    I am a member of ACA.
    I am thinking of emigrating to NZ and simply walking away from morgtage.
    This will make me bankrupt in Ireland.

    What are the implications of my becoming bankrupt does anyone know? For obvious reasons I don't want to go to the ICAI to ask.

    Will I lose my membership of ICAI?

    Can I become a member of any other body or does bankruptcy affect all bodies?

    Can I still work as an accountant but not auditor?

    Will I have to change career?

    What happens if I wait the 12 years - can I simply reapply for membership?

    Thanks for reading this.


Comments

  • #2
    smcgiff
    Closed Accounts Posts: 5,943 ✭✭✭smcgiff


    Hi,

    Pretty sure a bankrupt cannot act as a chartered accountant. But the bank would have to formally make you bankrupt for this to be the case.

    Anyone know how likely this is? Do banks do this.

    In my work contract it specifically says I must be in good standing with my creditors. So, even if you're not formally bankrupt a bad credit history may be enough to not get certain jobs.


  • #3
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,611 Mod ✭✭✭✭Jim2007


    dogscatsflower wrote: »
    I am thinking of emigrating to NZ and simply walking away from morgtage.
    This will make me bankrupt in Ireland.
    This will not make you a bankrupt, but it will mean that you have defaulted on a major debt and skipped the country, so I would think that it is definitely enough to cost you your membership, if they find out about it. I think the latest accountancy mag. contains details of someone who was before the CARB for failing to deal with his creditors.
    dogscatsflower wrote: »
    Can I become a member of any other body or does bankruptcy affect all bodies?
    As far as I know all professional accounting bodies have the same requirements. And you should be aware that if you apply for membership in NZ they will check on your Irish status before admitting you. It has happened to me in the past.
    dogscatsflower wrote: »
    Can I still work as an accountant but not auditor?
    Yes in industry I guess so.

    I could also imagine that your employers, assuming they are an accounting firm, will have difficult giving a recommendation for an accountant whom they no not to be in good standing with the Institute, if they become aware of it.

    The best option would be to try and come to some arrangement with the bank rather than skip town, you've got too much to loose otherwise.

    Jim.


  • #4
    dogscatsflower
    Closed Accounts Posts: 2 ✭dogscatsflower


    Thanks for your replies. It's not an option we want to take and we are trying to cope but I still need to research our options.

    Our children must come first and my partner would get a good job over there.

    Must run now to do the lotto ;)


  • #5
    tenchi-fan
    Closed Accounts Posts: 3,339 ✭✭✭tenchi-fan


    With ACCA if you declare yourself bankrupt they will not automatically bar you from membership.

    My advice is don't expect your worries to disappear just because you moved to NZ. Maybe try England instead - it's a lot closer to home.

    Stop paying your mortgage, if you have a car hold on to it (you would be allowed to keep it depending on its value), then get a job in the UK, and sign a lease on an apartment or house. This will show your centre of interest is the UK. The Irish bank will repossess your house leaving you with a lot of unsecured debt. Then file for bankruptcy in the UK.

    After a year you could be debt-free. And because the UK and Ireland are both bound under EU laws, if you are forgiven from debt in one EU country the bank in the other EU country cannot chase you for it... ever.

    The same will not apply if you in NZ. If you file for bankruptcy before emigrating you will still have to pay your creditors part of your income where-ever in the world you earn it. If you declare bankruptcy under NZ laws your Irish debt will still be waiting for you when you return to Ireland. And if you don't declare bankruptcy at all, well I don't know the ins and outs of it to be honest.

    All I know is the best option in debt-forgiveness is to live in the UK.


  • #6
    ianuss
    Registered Users, Registered Users 2 Posts: 3,020 ✭✭✭ianuss


    tenchi-fan wrote: »

    All I know is the best option in debt-forgiveness is to live in the UK.

    http://www.guardian.co.uk/business/2011/feb/18/ireland-property-crash-bankruptcy-tourism


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  • #7
    Sofa King Great
    Registered Users, Registered Users 2 Posts: 872 ✭✭✭Sofa King Great


    Firstly, bankruptcy can in certain instances last longer than 12 years.

    Although i couldn't see the bank here making you bankrupt. You would have to declare yourself bankrupt which is certainly not something to be entered into lightly


  • #8
    whatawaster
    Registered Users, Registered Users 2 Posts: 12,910 ✭✭✭✭whatawaster


    I can't believe the OP is getting any advice other than to stay in Ireland and face up to the mortgage he signed up to.

    His mortgage is likely with an Irish state-owned bank, who are going to be left writing off significant amounts of debt and will be left with an asset they probably won't be able to sell. If one person does this it might seem insignificant. But if hundreds or thousands start to take this course of action . . .

    Stay in Ireland, look for work (if you are not already in work) and pay off what you can of your mortgage. In a year or two, who knows where things could be. We might have mass mortgage write-downs and you could be in a much better position.


  • #9
    KingEnda
    Registered Users, Registered Users 2 Posts: 139 ✭✭KingEnda


    whatawaster wrote: »
    I can't believe the OP is getting any advice other than to stay in Ireland and face up to the mortgage he signed up to.

    His mortgage is likely with an Irish state-owned bank, who are going to be left writing off significant amounts of debt and will be left with an asset they probably won't be able to sell. If one person does this it might seem insignificant. But if hundreds or thousands start to take this course of action . . .

    Stay in Ireland, look for work (if you are not already in work) and pay off what you can of your mortgage. In a year or two, who knows where things could be. We might have mass mortgage write-downs and you could be in a much better position.

    Sounds like reasonable advice
    Not a nice position to be in but it never helps to run from a problem as it will always hang over you. Talk to the bank if you have major problems


  • #10
    work
    Registered Users, Registered Users 2 Posts: 661 ✭✭✭work


    whatawaster wrote: »
    I can't believe the OP is getting any advice other than to stay in Ireland and face up to the mortgage he signed up to.

    His mortgage is likely with an Irish state-owned bank, who are going to be left writing off significant amounts of debt and will be left with an asset they probably won't be able to sell. If one person does this it might seem insignificant. But if hundreds or thousands start to take this course of action . . .

    Stay in Ireland, look for work (if you are not already in work) and pay off what you can of your mortgage. In a year or two, who knows where things could be. We might have mass mortgage write-downs and you could be in a much better position.

    We might have write downs...in the mean while he should work his ass off for up to 40 years..people have already waited "years" for help..it is not forthcoming and the government does not and will never give a shi**. My advice is if you cannot afford to pay the debt or are unwilling to spend your whole life working your ass off to be in poverty then move to the UK and go bankrupt


  • #11
    work
    Registered Users, Registered Users 2 Posts: 661 ✭✭✭work


    KingEnda wrote: »
    Sounds like reasonable advice
    Not a nice position to be in but it never helps to run from a problem as it will always hang over you. Talk to the bank if you have major problems

    Talk to the bank, Why? so they can protect themselves or offer you another 50 years on your mortgage...ie drip feed the debt for ever!


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  • #12
    work
    Registered Users, Registered Users 2 Posts: 661 ✭✭✭work


    tenchi-fan wrote: »
    With ACCA if you declare yourself bankrupt they will not automatically bar you from membership.

    My advice is don't expect your worries to disappear just because you moved to NZ. Maybe try England instead - it's a lot closer to home.

    Stop paying your mortgage, if you have a car hold on to it (you would be allowed to keep it depending on its value), then get a job in the UK, and sign a lease on an apartment or house. This will show your centre of interest is the UK. The Irish bank will repossess your house leaving you with a lot of unsecured debt. Then file for bankruptcy in the UK.

    After a year you could be debt-free. And because the UK and Ireland are both bound under EU laws, if you are forgiven from debt in one EU country the bank in the other EU country cannot chase you for it... ever.

    The same will not apply if you in NZ. If you file for bankruptcy before emigrating you will still have to pay your creditors part of your income where-ever in the world you earn it. If you declare bankruptcy under NZ laws your Irish debt will still be waiting for you when you return to Ireland. And if you don't declare bankruptcy at all, well I don't know the ins and outs of it to be honest.

    All I know is the best option in debt-forgiveness is to live in the UK.





    After a year you could be debt-free[/QUOTE] There is no guarantee of this I believe it can last up to 12 years if they are not happy with you or they can take part of up to 3 years earnings to pay your creditors....ie not free in 1 year.


    The Irish bank will repossess your house leaving you with a lot of unsecured debt. Then file for bankruptcy in the UK.
    Why would the bank sell the property if they suspect you will go bankrupt?. Will they not hold onto it so there will be no benefit in bankruptcy.. there is a chance they will hold onto it so they can chase you or if the merket recovers (no chance)

    I am no expert just pointing out what I have read...I would love some thoughts on this


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