Hello,

Long story short: I was employee of a company which buys stock in euros. Due to the referendum and the GBP drop, our margin has sank and after a short recovery the company went bust and we have all been made redundant.

Because I’m a Spanish national living in the UK (7 years now), I could well stay here with the so called “settled status” but my landlord has already told that he won’t renew my tenancy in February because he assumes that all EU nationals will be illegal and he doesn’t want trouble with the government.

To be honest I’m quite fed up with all this uncertainty, we simply don’t trust the government and we (as young couple with kids) have decided to leave the UK because we consider the situation is not going to get any better both socially and economically.

3 years ago I (despite having joint accounts, the debt is in my name only) have taken an unsecured loan and there is still £28K outstanding. The bank has approved it because our combined salary was quite high and we were both on permanent jobs and back in 2015 we were not even thinking in leaving the UK but the referendum has changed everything. My company was supposed to fund my leased car as part of the job conditions but it has never happened, so I’ve supported those costs as well. Now we have got about 1/3 of the loan on our account and we are going to use that money to set up a business in Spain with very low startup costs and a decent profit margin.

But we still need the money to survive for the first few months and success is not guaranteed.

So basically I will have to miss payments and it’s just a matter of time before I get a knock on my door in Spain as I will be registered as sole trader (probably easier to find).

I have searched about enforcing debts throughout the EU but I get different results, and I’m a bit confused, basically I’ve got the following options:

1. I simply vanish to Spain without telling my bank; they will certainly send letters to my former UK address; they will apply for a CCJ so with this option I will be unable to use the statue barred option after 6 years. They will eventually find my address in Spain and send debt collection agents and eventually apply for a court order. If they find me I’m served.

2. I report change of address and let the bank know about my new address in Spain. But what they don’t know is that I will be staying temporarily with family, then getting my own place. So any letters will land on my family’s place. Now the bank cannot apply for a CCJ but they can well take me to court in Spain but that might turn into a costly and lengthy process for them (or not?).

3. As soon as land in Spain, I can send a letter to the bank explaining that due to unexpected circumstances I will not afford to pay anything for about 2 years, but hopefully I will be able to resume providing the business is successful. My concern is that they may not accept that and because I have now admitted that I’m in debt it is much easier for them to issue that sort of european payment order.

4. I declare myself bankrupt in the UK. I don’t have any assets in the UK but I will have low value assets (max £2000) in Spain which I need for my business. But I don’t know whether my assets are safe in Spain when declaring bankruptcy in the UK only. I don’t intend to return to the UK except for tourism purposes.

Please note that I intend to pay the debt but not at an excessive interest rate. It will take some time for us to build up some savings and pay them. Also note that the bank in question has not got any branches in Spain.

What do you consider to be the best option for me?

Thanks in advance.

Thread moved to the appropriate forum General Debt Issues Forum...please continue to post here to your thread.

Regards

Andy

Well wherever you go/do

Dca's are powerless

Thanks.

Actually I'm not too concerned about DCAs.

I'm worried about DCAs with a court warrant or getting my bank accounts frozen by a Spanish court.

Not sure where you are reading they can...

In the UK I know that DCAs can enforce a high court warrant like we all see in the TV show "can't pay we'll take it away".

I don't have a clue of whether Spanish law allows that.

Also I've seen on other post that the creditor can make me bankrupt in the UK.

Its civil debt

No

Bk poss. But as long as you get notification you can fend off/deal

Sorry I'm confused.

Are you suggesting that I should report change of address to the bank so I get notified?

Or should I just leave without contacting the bank?

ALways let the bank know. That way NOTHING can happen without you knowing about it.

Even when I move out to my own place?

yes NEVER run away from debt unless you are NEVER to return

Right, so does that mean that:

- I will notify the bank of my address changes but I should never answer to a contact attempt nor admit that the debt exists?

- The bank will possibly sell the debt to a Spanish DCA, but they are powerless anyway?

Where are you getting this idea that a uk bank can sell their debt to a foreign powerless dca?

[removed - dx]

Note: My loan agreement states the bank can transfer their rights.

ok had to remove that link please read our rules on the homepage

more to follow......

ok had to remove that link please read our rules on the homepage

more to follow......

Apologies but I've had the impression that this rule would apply to the link I posted:

8.3 Links to non-commercial and free advice sites are permitted, provided they are not posted by the owners of the site concerned, and that there is no direct financial gain involved with the recommendation.

Can I quote it at least?

£28k is a lot to go bandy on but not the crown jewels..and you are by far not alone and by far not even near the biggest runners that do this year in year out since year dot

Ive not seen any threads here that have resulted in serious issues

and neither is 'selling their rights' anything to be worried about

if its a uk major bank loan, it states this is under English law or Scottish law etc ….nothing about its enforceable elsewhere in EU

but we don't advocate debt avoidance either so …

however you state you wont be returning other than as a tourist....

you should ensure at whatever times that as your address changes whomever is the owner of the debt is informed in written [not email] notification of your address.

ok I said we don't advocate debt avoidance, but you can go BK from spain in the UK...but it would be 'nice' to think you'd address the debt..but what exactly can they do to you.....

answers in a bottle thrown in to the sea …...

Thanks for your honesty.

I will want to avoid debt until I get my savings built up to pay them.

That may take 2, 3, 4 years I don't know.

I'm not concerned about becoming BK in the UK as I don't intend to return to work, and of course as long as becoming BK in the UK does not affect my assets in Spain. If it does, I'll be in big trouble.

Also what are the consequences of not reporting for example my 3rd change of address to the owner of the debt?

I would always inform the owner upon where you are

if or if not they have any legal rights to actually be able to do anything is another matter

one can read all manner of information contained on the internet upon outcomes if/but/might/it did....

what is the truth, what are posted by DCA/OC patsy's paid a backhander to do it or posted by dca employees claiming to be in the same situation is speculative at best

Has family member move to Spain with debts. They received letters, but nothing else. The debt owners never even bothered employing a local Spanish debt collector.

Too many debts owed by too many people. Easier fish to catch !

Just give them your new address and then enjoy your life. It's unlikely they'll do anything apart from send you a few scary letters.

As for paying in 4+ years time... they d prob have forgotten by then, sold the debt to a dca or it may even be statute barred.

Take a deep breath and relax and just keep the bank informed of your address. Don't send them anything else.

Thank you all.

As matter of curiosity:

What would happen if don't keep the bank informed regarding a new address?

They may serve court claims to last known address and attain default Judgments...because you never updated them....and you would never be aware..until you checked your credit files.