Moving to Australia

[rockjock]

Guys,

 

Just stumbled across this site and it's been brilliant with the amount of information it's given me.

 

I'd like some advice if at all possible. I will be moving to Australia this year from Scotland, however, we have at least £20,000 negative equity on our mortgage with no way of paying this. That's assuming we even manage to sell the house, which is unlikely in the current climate.

 

My question is this, what would the implications be if we handed the keys back and moved to Australia?

 

-Would they eventually catch up with us?

- Could they force us to pay the money, which would obviously have increased due to the bigger shortfall from them selling the house and the interest etc

- Would this have an impact on our Australian credit history.

 

I've read through all the posts above, however, as I'm reffering to secured debt and also from Scotland, I'm not sure of the options.

 

Any help would be very much appreciated.

 

Thanks

 

RJ

[cerberusalert]

Post moved and new thread created.

[cerberusalert]

You are under no legal obligation to inform your creditors that you have emigrated.

 

If you are no longer a UK resident they cannot take legal action against you here, they would have to go through the OZ courts using UK law which is now practically impossible.

 

Any adverse information on your UK credit file will have no effect on your credit status in OZ.

[rockjock]

Thanks for the quick reply, really appreciated.

 

We were considering contacting the bank (Northern Rock) to let them know of the situation and try and come to some sort of payment agreement, but I assume that would probably be pointless as they would want the payment in full and we would be paying it for ever.

 

At what point would this debt effectively become statute barred, bearing in mind it's a secured loan and based in Scotland?

 

Also does the CCJ (Scottish Decree) being issued have any bearing on whether they could/would take action?

 

Thanks

 

RJ

[cerberusalert]

A mortgage shortfall runs for 12 years before it becomes Statute Barred, but there are certain circumstances where it can revert to 5 years (in Scotland).

 

Also does the CCJ (Scottish Decree) being issued have any bearing on whether they could/would take action?

If it was issued after you left Scotland you can have it set-aside as you were a non-resident. If it was issued before you left then they can pursue in Oz as there are reciprocal agreements between the two countries.

[rockjock]

thanks again,

 

sorry for the questions, but I'm just keen to ensure I have all the facts.

 

Would the amount of debt be a factor in whether or not they would be successful in persuing us for the debt as it would probably be way more than the current £20,000 ie is there a trigger point for them for civll debt?

 

Cheers

 

RJ

[cerberusalert]

A secured loan still falls under various sections of the CCA 1974 and because of such if they managed to find you, you could make things extremely difficult for them to pursue.

 

As was mentioned in the thread you first posted to, it's not so simple to pursue a debt in Oz.

[rockjock]

Brilliant, so in essence there's nothing they can do if I just stand my ground and only if I return to the uk will it become a problem?

 

The only reason I was querying was there are many posts on various forums stating that it's only non secured debt this covers and just wasn't sure how this aaffected mortgage/secured loans, however, the knowledge of this forum seems to be first class and you guys are doing an imense job - really pleased I stumbled across this - well done guys.

 

No doubt once we arrive in Oz and they start chasing us I'll be back on in a blind panic lol

 

Thanks again for your help Cerberusalert, this has put my mind at ease as it's been getting extremely stressfull wondering what to do as we have 2 young kids with us and didn't want this new start to turn into a nightmare.

 

Cheers

 

RJ

[cerberusalert]

IIRC a secure loan has part V exemption under the CCA 1974 but there are certain instances where such a loan can revert back to the full protection of the CCA 1974. But as you have already read the OZ courts are no longer willing to make judgement on such debts.

 

It's one of these situations where we'll have to cross that bridge when you come to it, but generally speaking if they manage to contact you in OZ there's not a great deal they can do.

[rockjock]

sorry but I'm not really clued up with regard to the CCA, what do you mean when you say secured loans have part V excemption?

 

Cheers

 

RJ

[cerberusalert]

Part V of the Act deals with four elements of entering into a credit or hire agreement; pre-contract disclosure, the formalities of entry into a regulated agreement, cancellation of a regulated agreement and its consequences and withdrawal from a prospective regulated agreement and its consequences. In some cases, specific information must be disclosed before a contract is made, with the standard provision that contracts where this is not followed are unenforceable without an order from the courts.

 

Part V contains several provisions relating to the cancellation of a regulated agreement and the withdrawal from a prospective regulated agreement.

[rockjock]

sorry I'm going to pick your brains again if you don't mind?!

 

I was reading through one of your stickys re "can I be surd for an overseas debt?" and you mentioned that "A MONEY JUDGEMENT MADE IN ENGLAND, WALES & SCOTLAND WILL ALWAYS BE ENFORCABLE IN ANOTHER COUNTRY!".

 

My understanding is that a money judgement is given by the courts to the bank/lender for things like mortgage debt, as in my case. What I'm querying is, if this is always enforcable in another country as that would obviously impact my situation, or has that been superceeded in Australia by this new court case? Or am I completely way off the mark and not getting this?

 

Cheers

 

RJ

[cerberusalert]

Any judgement obtained before you leave the UK is likely to be enforceable because of reciprocal agreements, however a judgement cannot be obtained against a non-UK resident. Once you've moved they cannot obtain a CCJ against you in the UK.

[rockjock]

ah, makes sense now, cheers. I think I've learned more in the last 2 days from yourself and this site, than I have in the last 2 years!!