Help: live in Nz, can no longer pay uk debts, wot to do??

[hhbop]

Hi All

 

Have been reading threads here and wish I had found this site yonks ago!

 

I was wondering if anyone could offer me some advice on my current situation

- is a little long winded so please bear with me:

 

I moved to NZ in April 2010 following the end of a relationship.

I was unable to sell joint house prior to leaving.

 

In order to complete my move I borrowed from a CC and an unsecured loan,

for whic I still owe approximately £22,0000.

 

The plan had been to pay them back with proceeds from house sale.

Not so, house has taken 4 1/2 yrs to sell, sold at huge loss and whilst it is due to complete next week, this isn't certain.

repossession Agents are waiting inthe wings if the house fails to complete.

 

I have maintained the loan repayments up until now and I can no longer keep them up at all.

 

I was considering bankruptcy but I have been out of the UK for over 3 yrs,

so thats complicated and asides from which, oddly enough, I can't afford to pay for it! (How ironic)...

... As of next Friday I will also no longer have a UK bank account.

 

What I have gleaned (i think) from the threads on this site is that I should write to CC & loan company

and tell them I now reside in NZ and provide my PO Box address (worried to say how long), cancel DD

(which will happen anyway as UK bank will be terminated next week)

and then wait for the nasty letters, which I then ignore and hope they don't send to an NZ DC, but if they do, re post on here and say help again??

 

Was hoping to return to UK next year for the first time,

which I would be able to afford once I don't have to maintain my UK debt

- might sound daft and just a little paranoid but I would be able to if they are looking for money??

 

Thanks in advance

[dx100uk]

debt is civil in the UK it plays NO PART in entry or exit permission.

 

dx

[unclebulgaria67]

As far as I know you can only apply for bankrupt in the UK, if you have been resident abroad for less than 3 years. I don't think there are any special rules that can be used to get around this. But there are specialist 'bankruptcy from abroad' companies that you can contact, if you search for them. The UK debt registered charity Stepchange also has staff trained to help those people who have left debts behind in the UK, after emigrating.

 

In your position, I think you should register your NZ address with all creditors, with some form of proof confirming that you have been a resident of NZ since April 2010. When you write to creditors, also give them some details of your financial position and that you will not be able to maintain payments to them. Ask your UK creditors to ensure that your UK credit record is noted that you are no longer a resident of the UK. This should stop the situation of debt collectors buying the debts and then using UK courts as if you are a UK resident.

 

As has been said, debt in the UK is purely a private civil matter between you and your creditors. The creditors will no doubt use the debts to write off against tax liabilities and they often have some form of Insurance as well. They may chase you for the debts, but they cannot do much if you could not afford to pay. Eventually they will sell on the debts to debt buyers, which is why it is important for your UK credit record to show you reside abroad.

 

If you are resident in NZ, then theoretically they could apply for your bankruptcy in the UK and then look at enforcement in NZ. But I have not heard of this being done, probably because it could cost them thousands and they may not get this back.

 

I would suggest that you contact bankruptcy from abroad specialists and UK debt advisors, just to inform you, before you write to creditors, so you have confidence that informing UK creditors of your NZ address is a good idea and not something to shy away from doing.

[hhbop]

thanks both - have had some contact with Stepchange and I will chase them up again.

[ozzyboy]

FYI - The rule on bankruptcy is a two way street.

 

You can't apply for bankruptcy if you've been out of the country for thee years but, for the same reason, your UK creditors can't apply to have you made bankrupt either.

[hhbop]

It really is bizarre. In order to go bankrupt I have to return to the UK and spend up to 12 hours in High Court in London, and pay for the pleasure. I am going bankrupt durgh! Or there's the sorry I was wrong re the date I left, or the debt just keeps on building in my absence, until infinity... Apparently the 6 yrs statute barred only stops from the date that they stop chasing the debt. Have posted my 'dear john' letters to CC Co and Loans Co today. Shall await their replies with some interest.

[unclebulgaria67]

It really is bizarre. In order to go bankrupt I have to return to the UK and spend up to 12 hours in High Court in London, and pay for the pleasure. I am going bankrupt durgh! Or there's the sorry I was wrong re the date I left, or the debt just keeps on building in my absence, until infinity... Apparently the 6 yrs statute barred only stops from the date that they stop chasing the debt. Have posted my 'dear john' letters to CC Co and Loans Co today. Shall await their replies with some interest.

 

This is where you need specialist advice. You should not need to come back to the UK to appear in court in person to declare yourself bankrupt. It does not make any sense anyway, because you would not be a resident of the UK and could not spend time with the court appointed official receiver. How would they deal with the fact that you are not in UK ?

 

I have a feeling that because you have had an ongoing financial interest in the UK ( the house that is being sold), that there are rules that make the 3 years being out of the country not applicable, so you could still apply for bankruptcy in the UK from overseas. I am sure that I have read something along these lines, but I would stress that I am no legal expert.

[hhbop]

Hi - I did, and the quoted info is their advice, i took it as read they were right. Am waiting to check things out with another company - wasn't too worried, but not I am thinking I should..

 

The company I spoke with called it 'Personally Present Insolvency'. I would have to go before the registrar as i don't live in the UK. The house sale hopefully completes tomorrow.

[ozzyboy]

This is where you need specialist advice. You should not need to come back to the UK to appear in court in person to declare yourself bankrupt. It does not make any sense anyway, because you would not be a resident of the UK and could not spend time with the court appointed official receiver. How would they deal with the fact that you are not in UK ?

 

I have a feeling that because you have had an ongoing financial interest in the UK ( the house that is being sold), that there are rules that make the 3 years being out of the country not applicable, so you could still apply for bankruptcy in the UK from overseas. I am sure that I have read something along these lines, but I would stress that I am no legal expert.

 

If you have been out of the country and have for more than three years you cannot apply for banruptcy even if you use a UK agent.

 

However, if you come back to the UK and appear at the court in person on the day of your hearing, you can declare bankruptcy at any time - even after the three years is up.

 

As far as having financial interests, the bankruptcy hinges on where your centre of main interest (COMI) lies. If you have lived, worked and paid taxes in NZ for the past 3+ years, then clearly this is your COMI.

 

It may be different if you had significant business interests in the UK but simply owning a house doesn't fall under this rule.

 

The whole point of the 3 yr rule as I understand it is to prevent other EU nationals taking advantage of the UK's comparatively fairly relaxed bankruptcy legislation by hopping over the Channel for a day and decaring themselves BR and thus wiping out all debts in their home state.

 

Finally, they are wrong about the 6 yrs stat barring. The clock starts ticking either from the date of your first missed scheduled payment or from the date your creditor issued you with a default notice and NOT when they stop chasing it.

 

DCAs have been known to try to collect debts decades after they after they have been SB'd but this doesn't mean they become enforceable.

 

If you make any payment, no matter how ssmall, within this period, the timer goes back to zero.