Debt in the UK

[user001]

Hi All,

 

Been lurking for a while so first post here

 

My wife (Australian) and I (English) currently have about 20k(ish) worth of debt combined. We both have seperate accounts (never done the joint account thing) and rent the property we are in.

 

The debt we have is unsecured (credit cards and loans) and is probably around 10k each.

 

We are going to Australia (she is moving back and i am immigrating) and working out backsides off to clear off the outstanding debt before we go but the problem we have is due to the type of visa i am getting it could go through very quickly and they will give me the date to move over and validate my visa.

 

So my issue is this... if there is still outstanding debt when we go (say worst case the full amount - 10k each - which it WONT be, but just worst case) what can the UK do about it?

 

Our plan, if the move happens quicker than expected is to keep the UK bank accounts open with some money to pay debts for maybe 2-3 months max. Once we have regular work in Australia (i work in a specialised field so is well paid over there) we will either get a loan out to pay off the UK debt or wait a bit longer, get our mortgage over there and add extra on to pay off the UK debt.

 

We always have the intention of paying debt back (after all,we spent it) but decided we would rather pay the debt pack in the sunshine!

 

 

So, there maybe a period of worst case (6-12 months) where the banks & credit card companies will be wondering where we have gone and be chasing for the money but can they chase us in Australia? (im sure they will write to the flat we are living in and the new owners will prob tell them we are in Australia!) but is the Consumer Credit Act enforcable in Austalia.

 

Please note; apart from regular holidays we will not be back in the UK to live. Worst case if in about 10-15 years my parents health takes a turn for the worse we may come back for a bit but outside the SOL.

 

Can the banks chase us in australia? can they make us pay or affect our credit rating while we are trying to get on our feet in australia?

 

Thanks - its prob a long repetative post sorry!

 

User001

[cerberusalert]

So my issue is this... if there is still outstanding debt when we go (say worst case the full amount - 10k each - which it WONT be, but just worst case) what can the UK do about it?

Not a great deal unless they obtain a CCJ against you before you leave the UK.

So, there maybe a period of worst case (6-12 months) where the banks & credit card companies will be wondering where we have gone and be chasing for the money but can they chase us in Australia?

They could chase but not necessarily take any enforcement action.

Please note; apart from regular holidays we will not be back in the UK to live. Worst case if in about 10-15 years my parents health takes a turn for the worse we may come back for a bit but outside the SOL.

Debt is a civil matter not criminal, you can come and go at will. After six years a debt becomes Statute Barred and cannot be enforced if you have not made a payment or written acknowledgement of the debt during that period.

 

Have a read through these two threads;

http://www.consumeractiongroup.co.uk/forum/overseas-debt-overseas-account/250889-can-i-sued-overseas.html

http://www.consumeractiongroup.co.uk/forum/overseas-debt-overseas-account/221573-debt-being-chased-australia.html

[user001]

Thanks for the reply.

 

I did have a gander through those pages, i was slightly confused though as it would appear that you can be sued while being in Australia?

 

You say that they need to issue a CCJ before leaving the UK... that isn't going to happen, at all. Never missed a payment with the bank and won't until we leave it (if we leave earlier than planned).

 

When we get the nod, we will pretty much liquidate, sell the car etc... the buyer prob wont pay cash as too much money but once money clears, take it out of the bank and head over with cash.

 

We will leave some in the account to pay the bills while we're gone.

 

We were planning on leaving the bank accounts open and dissapering until we get sorted the other end, will they just close the UK accounts? as mentioned, there is no chance of defaulting anything while we are in the UK, it will be once we have gone.

 

So basically they won't have any phone numbers, addresses or anything, we have no need to forward any mail so there will be no way of contacting us until we make contact with them.

 

Can they affect our Australian credit rating? i was reading that some australian companies have frozen credit cards to people who have been great in australia after getting information from a UK bank which affected their credit rating suddenyl in oz?

 

Sorry for the questions.

[cerberusalert]

We were planning on leaving the bank accounts open

If the a/cs are overdrawn it won't be possible to close them. If your loans/credit cards are with the same banking group as the bank a/c they will use the 'right to offset' and try to take money from that a/c thus incurring further charges.

Can they affect our Australian credit rating?

Technically no, in practice it does happen particularly if you open an a/c in Oz which has a relationship with a Brit bank, although under the Data Protection Act they are not allowed to export data abroad.

[user001]

If the a/cs are overdrawn it won't be possible to close them. If your loans/credit cards are with the same banking group as the bank a/c they will use the 'right to offset' and try to take money from that a/c thus incurring further charges.

 

My loan & 1 credit card is with the bank and the other credit card is with another bank (barclay card). The bank accounts will 0 when we leave, so is it best to close the overdraft facilitiy when the account is in the green to stop them taking the money from the overdraft?

 

 

Technically no, in practice it does happen particularly if you open an a/c in Oz which has a relationship with a Brit bank, although under the Data Protection Act they are not allowed to export data abroad.

 

How does that work then - if they are not allowed to exchange data surely it they can't do that?

 

we were plannig on getting an account with an aussie bank or building society equivilant anyway?

 

Thanks again, i will be donating to this site!

[cerberusalert]

so is it best to close the overdraft facilitiy when the account is in the green to stop them taking the money from the overdraft?

Banks are crafty, even having the O/D facility removed they'll still try and take monies & then class it as an unauthorised overdraft & add penalty charges.

if they are not allowed to exchange data surely it they can't do that?

Trouble is it has been known that they do.

[user001]

so in your opinion - after reading my posts and i will take your comment as 1 person (with a pinch of salt).

 

what do you think would be the worst case scenario and best case scenario from what i have proposed?

 

Thanks

[cerberusalert]

If both of your individual debts total less than £15K each have you considered a DRO? Debt Relief Order - Wikipedia, the free encyclopedia

[jdes26]

if i was going to oz id give them sod all !!!!!!!!!!!!!!!!!!!!!!!!!!!! my mate racked up 30k of c/c debt moved to oz/ perth has 5 bed house with swimming pool yippeee!