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Live abroad, will be defaulting on UK loans, should I inform the creditors I moved abroad?


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Dear unknown friends,

 

Hope someone can offer valuable advice.

 

I have two UK unsecured personal loans. I recently left the UK and moved back to my parents house, in a developing country with no links to the UK. I can't pay one penny on those loans anymore, and I will be soon defaulting. A student loan the size of Jupiter takes precedence, and I am struggling to avoid defaulting on it.

 

I read every single post on the subject I found. I gathered that a creditor/collector cannot legally get a UK CCJ against a non-UK resident.

 

I am debating if to tell the creditors I moved abroad (before defaulting), or if to default and let them find me. I am also debating if, were I decide to tell them, if I should tell them by updating my address on their files (through their websites), or if I should tell them by mail enclosing with the letter a bill under my name as proof of address.

 

If I give them my new address they will come chasing but they should be unable to get a CCJ against me, but if I don't then I risk them getting a CCJ against me, as neither creditors nor courts know I live abroad.

 

Any words of wisdom on my dilemma? Should I tell them of my address abroad or not? I'm leaning towards informing about my address abroad. I've read mixed comments, some saying one should tell creditors one moved abroad, others saying not to tell under any circumstance.

 

Thank you and God bless you,

LL

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If you live outside of the EU and not in a commonwealth country, then there is little chance of any debt following you. If you live in a commonwealth country, this may be covered under an act dating back to the 1930's, which allows for debt enforcement cross border within the commonwealth. But even then it is not that likely.

 

If I were in your shoes, I would send a letter and email with some form of proof that I was now a permanent resident of another country. I would also advise them of financial circumstances meaning that I could no longer afford to make repayments. Ask them to acknowledge your letter and that they have marked your records that you are now resident abroad. Keep the correspondence for future use if required.

 

There is no guarantee that this would stop you getting a CCJ, as debts will be sold on to debt collection agencies (DCA), without telling them you are abroad. The DCA may get a CCJ using you last known UK address, but if you have written to original creditors advising of your move abroad, it would be easy to get the CCJ set aside, as they should never have applied to a UK court.

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There is one more thing I have significant doubts on: what to do with my UK bank and credit card accounts. I debate between closing them all before defaulting, or not.

 

Should I expect my creditors to let my bank and credit cards know about my default, seize the little money left on the bank, and force the account closures? Can they do that without a CCJ? The seizure of the money would not be a big deal. What worries me is having the accounts closed for me. That would leave an additional stain in my financial history. Who knows, maybe I save enough to pay all debts and in 5/10 years I return to the UK. I would like to minimize the damage done to my financial reputation.

 

I am aware the subject of this thread and this last question are not related, maybe I should re-post on a new thread.

 

Either way, thank you all very much!!!

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One more! On the original subject:

 

When I emigrated I updated my address on my creditors file to a UK based mail forwarding company.

 

I could send the creditors a letter with proof that I am now a permanent resident of another country and update the address on their websites as well (to show my foreign address), or I could send the letter only and leave the address on their websites unchanged (still showing the mail forwarding address). If I opt for the later I may still receive the creditors correspondence, and I may be able to find out if they are getting a CCJ against me.

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There is one more thing I have significant doubts on: what to do with my UK bank and credit card accounts. I debate between closing them all before defaulting, or not.

 

Should I expect my creditors to let my bank and credit cards know about my default, seize the little money left on the bank, and force the account closures? Can they do that without a CCJ? The seizure of the money would not be a big deal. What worries me is having the accounts closed for me. That would leave an additional stain in my financial history. Who knows, maybe I save enough to pay all debts and in 5/10 years I return to the UK. I would like to minimize the damage done to my financial reputation.

 

I am aware the subject of this thread and this last question are not related, maybe I should re-post on a new thread.

 

Either way, thank you all very much!!!

 

If you are not using the UK accounts, you should close them. If the debts are with the same bank, they can take the money from the account, if this is noted within the terms. For example if you had a HSBC credit card debt, they could take money from a HSBC bank account. If the debt is with a different bank, the creditors cannot touch it. I doubt very much that any creditor would apply for a CCJ and then apply to freeze your UK assets. You would have to owe many tens of thousands, before I think they would do this.

 

It is usually a condition of the bank account or credit card, that you are a resident of the UK and once you stop being a resident, that you have to notify them. They will then close the account and if you have a credit balance, they will issue this to you.

 

I would suggest that if you are not returning to the UK within the next year or so, that you contact the banks to inform them that you have moved abroad and that you want to close the accounts. When the banks close the accounts, they may then note your credit file that you have moved abroad and this should be helpful.

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One more! On the original subject:

 

When I emigrated I updated my address on my creditors file to a UK based mail forwarding company.

 

I could send the creditors a letter with proof that I am now a permanent resident of another country and update the address on their websites as well (to show my foreign address), or I could send the letter only and leave the address on their websites unchanged (still showing the mail forwarding address). If I opt for the later I may still receive the creditors correspondence, and I may be able to find out if they are getting a CCJ against me.

 

Update all records with your foreign address. If they want to write to you they can. There is no reason to hide.

We could do with some help from you.

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When the banks close the accounts, they may then note your credit file that you have moved abroad and this should be helpful.

Brilliant insight, many thanks!

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Update all records with your foreign address. If they want to write to you they can. There is no reason to hide.

 

Thing is my current address should cease to exist within a year (my parents plan to sell it). And I hope to move to the US if I find a job there. I would be worried to update creditors' files with a US address, but I would also be worried to leave creditors without an address where I can be contacted (to be able to stop any CCJ sooner rather than later). Keeping a UK forwarding address solves both issues, but it may create another issue: it may be interpreted as sign that I live in the UK.

 

Any second opinion would be enormously appreciated!

 

Thank you unclebulgaria67, you were beyond helpful!

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The US is even better for a UK debt. Very difficult for a UK debt to be enforced in the US, as there is no agreement between the countries over consumer credit debts.

 

Keep creditors informed of your up to date foreign address.

 

You could contact Stepchange and they might have suggestions.

 

http://www.stepchange.org/LivingoutsidetheUK.aspx

We could do with some help from you.

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Hi unclebulgaria67!

 

I just read one post of yours from two years ago saying "for debts over £750 they can apply for bankruptcy in your absence using your last known UK address. Some debt companies are doing this rather than apply for CCJ's." Its the only mention to this I've seen. Find it strange nobody else defaulting and moving abroad has mentioned this. Would you know if it still applies? My debt is well over that threshold.

 

Many thanks,

LL

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Hi unclebulgaria67!

 

I just read one post of yours from two years ago saying "for debts over £750 they can apply for bankruptcy in your absence using your last known UK address. Some debt companies are doing this rather than apply for CCJ's." Its the only mention to this I've seen. Find it strange nobody else defaulting and moving abroad has mentioned this. Would you know if it still applies? My debt is well over that threshold.

 

Many thanks,

LL

 

There is a process that creditors can use to do this, but I doubt it happens very often, because it would cost over £1k for them to do this and they may not get their money back. I suspect that bankruptcy when the debtor has gone abroad is only used when the debt is for a large amount. I am no expert on this process, it is just what I have read. If you have a very large debt and have assets such as property, you should seek professional debt advice.

We could do with some help from you.

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Thanks unclebulgaria67, that's valuable to know. The bigger of the two is for 20k. No assets aside of 5k on a pension/SIPP account, which is supposed to be untouchable. Find it interesting that I've seen other posters with debt as big as mine and still no mention of forced bankruptcy. Bankruptcy would not be great for my job search abroad because supposedly some companies would perform UK credit checks. Supposedly. Couldn't find conclusive info about it.

 

Would my credit file tell creditors what assets I have? Really hope so, that would show them they have nothing to gain from my bankruptcy.

 

Many thanks

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Credit files only record credit, not assets.

 

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Thanks unclebulgaria67, that's valuable to know. The bigger of the two is for 20k. No assets aside of 5k on a pension/SIPP account, which is supposed to be untouchable. Find it interesting that I've seen other posters with debt as big as mine and still no mention of forced bankruptcy. Bankruptcy would not be great for my job search abroad because supposedly some companies would perform UK credit checks. Supposedly. Couldn't find conclusive info about it.

 

Would my credit file tell creditors what assets I have? Really hope so, that would show them they have nothing to gain from my bankruptcy.

 

Many thanks

 

I doubt they would find the pension/SIPP account. I am not sure whether they can touch that or not.

 

With debts of over £20k, I should imagine they will be chased for years. Repeat the advice given, which is to remain in contact with creditors, making sure they record that you are abroad. Better to know what is happening with the debts, just in case you ever had to come back to the UK or moved to a country which has a cross border debt arrangement with the UK.

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  • 2 weeks later...

Think you should get some help locally. Debt can cause anxiety issues such as thinking of ways to get out of debt, which might make the situation worse.

 

The best advice is to write to the companies you have debts with explaining your situation.

 

Debt is NOT a criminal issue so no problem visiting the UK.

 

Have you though about going bankrupt ? Might be the best option, rather than to have this going on for years.

 

http://www.stepchange.org/Howwecanhelpyou/Bankruptcy.aspx

We could do with some help from you.

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citizenB, same background but very different issue.

 

The issue of the first thread was about what to do with the address after moving abroad. unclebulgaria67 helped me with it, and the thread should have been closed.

 

The issue of the last post was about betting on the stock market with credit card money to avoid default. Very different, and addressing something not covered anywhere else: move abroad with UK debts + maxing out credit card for betting before eventual default. Key question: is that fraud?

 

Can we please unmerge these two? Otherwise the thread will currently not attract posters that may have a view on betting with credit card money and default, but rather posters with a view on moving abroad and defaulting.

 

unclebulgaria67: there are no debt help agencies in the third world country I live in, those are first world luxury (btw I did call a couple in the UK, they were useless when faced with the moving abroad scenario, representatives had no clue). I have no anxiety problems. I recognize the debt as it is will highly likely have zero impact in me. That took care of anxiety. The idea to get out of it is because I perceive I could get out of it risking nothing with a 40% probability of success. The idea of leaving no debts behind is very appealing.

 

Thank you

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Righto, have unmerged and restored to original thread.

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