debt dilema - do i move abroad & what about my UK debts?

[ottol]

Hello I am new to the site and worried about making the correct decision for my present debt situation.

 

Regretably I have built up debts of around 30.000 on c/cards, loan and bank o/draft, and so far managed to make minimum payments required.

I am self employed, and my work now virtually non-existant due to the economic situation in the retail sector.

 

I am single and receive a state pension - I do not have any private pension plan, and I rent a one bedroom flat which has a secure tenancy.

 

My rent is just over the amount of my pension, and therefore I am already in shortfall - needing to find extra for c/tax, utilities food etc.

 

I have no assets in the UK apart from my car, and any savings I had are now all gone.

 

However I do have an asset abroad - in France,

it's a modest one bed property with no central heating, requiring some modernisation.

 

I could sell it - thus paying off my debts, and then I may possibly have enough to pay toward rent in UK for a few months

- but the reality is that it could take years and years to sell!

 

Which does not help my immediate situation.

 

My other option is to go and live there - which had always been my intention - but work had kept me here.

 

So after considering my options,

I wrote a letter to my landlord informing them that I wished to terminate my tenancy giving the one months notice required

- I took the letter in person in the hope that I could speak with an employee and explain my situation

- however they were too busy to see me.

 

In desperation I visited my local council offices explaining to them my situation,

to see if I had any entitlement to help with my rent etc.

I didn't think I would be entitled to any benefit, because of my asset, and was therefore surprised by their response.

 

They told me to tear up my letter of notice to my landlord, as I would be making myself intentionally homeless

and gave me application forms for H.Benefit and C.Tax - told me to go and see CAB and to find out about pension credits.

 

Meanwhile a few weeks later, having given them all of my personel information, bank statements, bills address of asset etc.

I received a letter saying I was not entitled to any benefits due to having an asset worth over 16,000.

 

I confess I was slightly irritated by them at having wasted my valuable time and money

- as I had to pay another months rent while all of this was going on, only prolonging my current bad situation!

 

So once again I wrote another letter giving notice to my tenancy

...but this time it coincided with my first interview with CAB.

... and once again I was advised not to give notice to my flat.

 

So yet more time passes and another months rent is almost due for payment - where do they think I am to magic this money from?

 

I see CAB next week , but before my appointment with them thought I would ask the forum if they had any advice to give me.

 

I am more confused than ever, not helped by medication I had been receiving for depression.

 

Am I wrong to think that it makes more financial sense to move to where my overheads could be a little more achievable?

and thus giving me breathing space to deal with my financial dilema

- maybe even finding other ways of making a living over there?

 

I am so scared I have got myself in to such a mess,

and it seem that the current advise will only serve to speed up my demise,

there is no money left to pay these outgoings unless drastically reduced.

 

Can my creditors take everything away from me?

or do I have more security over keeping my asset if I am actually living in it?

 

I can't see that I will ever be able to afford payments on two homes any more,

and so if I have no entitlement to financial help in the UK

- I am unable to pay the rent,

 

I really don't understand the advise that is telling me to stay?

 

But if I go - what are the implications of living in France - but having a UK debt?

 

Do I keep mailing address (of family) here fore example.

 

Any advice would be so much appreciated,

 

I am so confused - thank you in advance

- and apologies for such a long post!

[dx100uk]

IMHO i'd do it - move

 

there is an overseas forum here

 

I see little hope of any UK creditor being able to do anything to you once you are gone!! [hint hint]

 

dx

[ottol]

thank you for your response, which I seem to be having difficulting in posting a reply to! so apologies if a few arrive!!!

 

My feeling is that I should move to the property I own - the dilema lies in advise to do the contrary!

 

And of course how I can best deal with making some kind of payment plan towards my debts if living abroad, as well as how secure my very modest asset would be?

 

If it is my only residence, can I be forced to sell? for example, if this were the case then yes indeed giving up a secure tenancy in the UK would be foolhardy.

ot

[dx100uk]

if they are all civil debts which they are

 

there's nothing once outside the uk they can effectively do to you...

 

UK debt collectors are NOT bailiffs

 

they have NO SUCH legal powers in the uk

 

and even less over the water

[ottol]

should I be transfering my original post to the overseas forum? and if so how do I do that? ot

 

IMHO i'd do it - move

 

there is an overseas forum here

 

I see little hope of any UK creditor being able to do anything to you once you are gone!! [hint hint]

 

dx

[dx100uk]

I have moved itr for you now

 

if you scroll to the top of this page on cag

click the forum name in blue

 

there are lots of other threads to read

 

to help you decide....

 

dx

[ottol]

thank you for moving my thread to more suitable location.

 

I am having such trouble on this site

- I have managed to delete at least 5 or 6 of my posts

- by pressing the wrong button, and it's not easy to recall everything I wrote! silly me!

 

However I will try ....

- As I have an imminent appointment with cab next week, I wanted to verify my position.

 

They have given me a form to fill and sign

- it's a form of authority,

 

my concern is that in doing this am I commited to their advice?

 

as it seems a little premature to sign without them first knowing my full situation and my dilema re France, having only spoken with a general advisor so far.

 

And I was a little surprised when the person interviewing me took my 2 letters (from the local council declining HB to me)

 

'to show their colleage' as it came back unattatched from the other page

- which indicated that it had been photocopied without my permission. naughty!!

 

If they suggest an IVA or whatever .... should I be entering in to this type of agreement?

 

lowering my monthly costs would obviously be advantageous to me,

 

as I am now entering the situation of being unable to pay the high interest and minimum payments which amount to around 700 month!

 

I really do appreciate your help - but am a complete novice in this area - so please stick by me - I need you.

 

Thanks

ot

[dx100uk]

just type what you want to say in the msg box and hit post quick reply.

 

if you want to list your debts please do.

 

pers i'd not be signing anything with anyone...

 

dx

[ottol]

thanks dx

Well the debts go something like this

- A bank o/d of around 4000 + and

c/c of around 2800 and

9900 - (with another bank) -

a loan of 7500 and

c/c of 2200 plus another

2 c/c on low int. at around 2300 and the

other currently using at around 3600?

 

Awful isn't it?

 

I am so out of my depth here and not really sure what to do?

 

I'm guessing that I should not make any kind of payment plans/negs until I move permanently to Fr which I could do within around 5/6 weeks - would that be correct?

- or the totally wrong thing to do?

 

With less overheads by being there I might be able to carry on scraping together minimum payments - but unlikely for long.

ot

[dx100uk]

not that bad and not verified either

nor what % of those debts ae inflated by PENALTY charges & PPI etc etc

which you can get back

 

how does the industry see you ?

 

go get your CRa file

 

see below

 

dx

[ottol]

can you tell me a little about the recipricol arrangements between EU andUK

[unclebulgaria67]

They can use what are called European Enforcement Orders to enforce the debt in France, but if you contested, they would be back to getting a UK court judgement followed by enforcement in a French court. They can also make you bankrupt in the UK in your absence and transfer this to a French court.

 

It would appear that for personal debts, that they are not often enforced outside of the country they were built up. They are certainly chased and threats are made to enforce in court, but unless creditors are certain of a return, they don't appear to want to incur legal/court fees. But you cannot rule it out. You are always best to inform creditors of your new address when you move and of your circumstances. Then there can be no excuse of them not serving any relevant letters/papers to your correct address.

 

http://en.wikipedia.org/wiki/European_Enforcement_Order

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?269952-EU-Debt-Enforcement-of-UK-judgments.

 

[ottol]

Ok - thank you for that - will keep you all posted.

[steveab1]

Ok - thank you for that - will keep you all posted.

 

Go online and rent a postbox in Australia. Inform the creditors that you are off to Australia to live with relatives. Make sure they reply noting your new address.

 

Been there, done it, got the T-shirt.

[ottol]

It's all very good & interesting advice - for which I thank you all -I need to sleep nights, something I have been unable to do, my worry is I will never sleep again!

ottol

PS - My latest advice BTW has been to place my property for sale.

[unclebulgaria67]

Yes, if your leaving the UK with unsecured debts, you don't want to leave any property behind. I believe that a county court claim is easier if you have property in the UK, even if you are personally resident outside of the UK.

[ottol]

Sorry, I don't think I made it clear - my property is not here in UK - I only rent - it's the property in FR I have been advised to sell!!! The property I was thinking of living in.

[steveab1]

It's all very good & interesting advice - for which I thank you all -I need to sleep nights, something I have been unable to do, my worry is I will never sleep again!

ottol

PS - My latest advice BTW has been to place my property for sale.

 

Why sell the one asset you have, to hand over to the greedy banks ? Get yourself over to France, forget about the debt, and don't worry there's not a whole lot they can do except threaten and use bully boy tactics.

 

PS and don't tell them where the place is in France, postbox is the way to go, tell 'em you're homeless at present and using a postbox. Tell them lies only.

Edited July 5, 2013 by steveab1
ps

[Queens_king]

Hi ottol

 

I am in the same boat, almost GBP30,000 debt plus another GBP3,000 on a mortgage

 

I retired early and deliberately left the UK .. but I headed for SE Asia. Since I have been here I have had threats of bully boys coming to my front door, charges of over GBP600 for flights and extertionate charges being added.

 

What did I do?? Just sent them an email and said great, like to see you in court under xxxxxxxx law. No trouble since from most but one or two are a pain in the neck.

 

So ... get out of it, go to France, forget about your problems

 

Best wishes

[unclebulgaria67]

Sorry, I don't think I made it clear - my property is not here in UK - I only rent - it's the property in FR I have been advised to sell!!! The property I was thinking of living in.

 

I can't see any point selling property in France, just because of some unsecured debt in the UK. IF and it is a big IF, creditors start any court action, you can deal with it at the time. There are hundreds of thousands of debts being chased at anyone time, so you would have to be pretty unlucky to be picked on. But you should make creditors aware that you are outside the UK, so they know that taking you to court would be more difficult.

Edited July 13, 2013 by unclebulgaria67