Uk Debt but I have now moved to Dubai, please help!

[gavandcarly]

Hi guys, wondering if you could help/give advice.

 

My husband has a terrible terrible credit rating, he has about 5/6 defaults from different companies and 1 or 2 CCJ'S.

 

We have recently moved to Dubai and I have been trying to get all of his debt in order and set up payments for them all.

 

What I want to know is, is there any point in actually paying these debts if they have already issued defaults and CCJ's now that we live abroad?

 

What would happen if he just doesn't pay the debt?

 

I just think that even if we pay the debt his credit rating is already demolished for at least 6 years...

 

Any suggestions/advice would be much appreciated.

 

He owes roughly £5000 in total for different credit card companies/bank loans.

 

Thanks Guys!

[cerberusalert]

AFAIK there are no reciprocal agreements between the UK and Dubai but it may be possible for a creditor to pursue through their court system.

 

The majority of middle-eastern countries don't look favourably on debtors, particularly if the debt is owed to any of their institutions+.

 

Personally I would definitely ensure the ccj payments are maintained, as for the other debts are the creditors aware of your whereabouts?

[gavandcarly]

Thanks for your reply, yes the creditors know that we are in Dubai, but they do not know our address or anything like that. The reason they know is because I originally contacted them all and I had to contact them via email, and they were a bit dubious as to send any info via email, so I had to let them know the reason why I could not receive post.

 

What is your or anyone's advise please?

 

Thanks

[cerberusalert]

There are a couple of posters on this forum who live/work in the Middle East so hopefully they will be able to comment. Although I honestly believe that a UK creditor will have great difficulty pursuing a debt in Dubai.

[gavandcarly]

do you think if we just leave it they will write it off? If so how long does it normally take to be written off?

[cerberusalert]

They won't write it of as such, they're more likely to sell the debt to a debt collection agency after a while & then claim tax. A DCA will then try their luck but if it trurns out it will be too expensive for them or too time consuming they'll sell the debt on again to another DCA further down the food chain.

 

If you don't acknowledge or make payment towards a debt for six years it becomes Statute Barred and they cannot take enforcement. A CCJ never becomes Statute Barred although if it's not enforced within six years the creditor would have to apply to the court for permission to enforce & this is rarely if ever given. In fact there is case-law to show why it shouldn't be allowed.

[gavandcarly]

so what would your advise be? Should I pay I just pay the debt off incase we return to the UK to live within the next 6 years? Or should I just ask them for a settlement figure, I know it will appear on his credit report as partial settlement but his credit rating it really really bad as it is, or should i just not pay it as we dont live in the Uk anymore?

[cerberusalert]

£5K between several card companies isn't that much & given that you are outside of the EU etc it wouldn't be financially viable for the original creditors to pursue too vigorously, so they will eventually sell the debt to an outside DCA for a fraction of its value... usually between 7 & 20% so in effect a DCA will pay around £1K for them.... I doubt very much whether they would pursue too hard either given the expense and man-hours involved.

[gavandcarly]

So would your advise to be to just not pay them? Or to just get settlement offers on them?

[cerberusalert]

You could always offer a settlement & then if they refuse to play ball so could you.