Worried

[jimmyay]

i have been living in australia over 2 years.

 

i have unsecured debt in the UK of around £30,000 to 3 lenders - couple of credit cards with 10k and unsecured loan also of 10k.

 

i am finding that with exchange rate changing i am now really struggling to keep up payments, though i have managed to keep paying so far with just the odd missed one now and again. i am really worried for the future though.

 

i have read the forums about DCA's not able to obtain CCJ if person is abroad and enforce the debt and I have given Aus correspondence details to the lenders so they know where to find me of they want.

 

the thing i am worried of is that can the creditors instead of trying the ccj route, just instead bankrupt me in my absence, and then enforce it in australia?

 

i have very limited assets here in aus which i have worked hard to scrape together.

 

What happens after 3 years?

 

i understand the creditors would no longer be able to make me bankrupt in UK (nor could i apply to be bankrupt in the uk) .

 

After 3 years,could they still try to bring a bankruptcy petition in Australia and seize any savings i have managed to scrape together here? this is causing me so much worry. i will obvioulsy keep paying what i can but starting to panic.

[citizenB]

Are you making the minimum contractual payments ? Would it be easier for you to perhaps enter into a payment arrangement and reduce your payments considerably ?

 

Are there any charges or Payment Protection insurances on any of these accounts ? You could reclaim PPI if it was of no value to you when sold and the charges can be reclaimed as well.

 

I think you will need to wait on those caggers who have more knowledge in this area than I do.

[unclebulgaria67]

New rules came in earlier this year from the FCA (was FSA) which requires creditors to use other enforcement options, before going for bankruptcy. They should go for a normal court judgement, but cannot do this, because you are outside of the UK. They cannot go to the Aussie courts directly.

 

So they could argue in the circumstances that bankruptcy or threat of is the only viable option. But as they know you live in Aus, they would have to get a local process server in Aus to serve a statutory demand on you, which is notice of intention to serve for bankruptcy unless a payment arrangement can be agreed. So you will know about any intention for them to use bankruptcy, by someone coming to your door to serve the SD.

 

I cannot see this happening. If you have been outside of the UK for 3 or more years, they could not use bankruptcy. If you have no assets which they can get hold of, they won't bother. They will use a debt company in Aus to check available public records.

 

In your situation, I would suggest that you write to creditors explaining your situation and seeking their assistance. Ask them to write to you, explaining what options there are. If you cannot afford the current payments and need to be able to move on, then it might make sense to stop payments. For a debt of that amount, it would take quite a long time to make a full repayment. If you had a small lump sum of money, you could offer reduced full & final settlements. But I suspect that they would want atleast 20% of the debt. They would work out, what the debt is worth to them at the moment and come to a judgement.

 

Are you dealing with Banks or Debt Collection Agencies ?

[AndyOrch]

Along with the excellent advice above I would be asking for copies of the agreements before any intended offers of settlement.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?387435-CCA-Request-Consumer-Credit-Act-1974(1-Viewing)-nbsp

 

Andy

[jimmyay]

New rules came in earlier this year from the FCA (was FSA) which requires creditors to use other enforcement options, before going for bankruptcy. They should go for a normal court judgement, but cannot do this, because you are outside of the UK. They cannot go to the Aussie courts directly.

 

So they could argue in the circumstances that bankruptcy or threat of is the only viable option. But as they know you live in Aus, they would have to get a local process server in Aus to serve a statutory demand on you, which is notice of intention to serve for bankruptcy unless a payment arrangement can be agreed. So you will know about any intention for them to use bankruptcy, by someone coming to your door to serve the SD.

I'm

I cannot see this happening. If you have been outside of the UK for 3 or more years, they could not use bankruptcy. If you have no assets which they can get hold of, they won't bother. They will use a debt company in Aus to check available public records.

 

In your situation, I would suggest that you write to creditors explaining your situation and seeking their assistance. Ask them to write to you, explaining what options there are. If you cannot afford the current payments and need to be able to move on, then it might make sense to stop payments. For a debt of that amount, it would take quite a long time to make a full repayment. If you had a small lump sum of money, you could offer reduced full & final settlements. But I suspect that they would want atleast 20% of the debt. They would work out, what the debt is worth to them at the moment and come to a judgement.

 

Are you dealing with Banks or Debt Collection Agencies ?

 

Dealing with banks directly at the moment.

[unclebulgaria67]

Dealing with banks directly at the moment.

 

Put the ball in their court, by writing to them stating your situation and asking for their help. You don't need to go into too much detail. Just that you are struggling to afford to make repayments and be able to live.

 

Then see how they respond. If you want to rule out any slight possibility of bankuptcy being an opinion, you make token payments to them and when you have been out of the UK for 3 years, you might decide to stop.

 

Given the behaviour of Banks in recent times, I don't have the same moral judgement on people who choose to not repay debt, if they need to move on in their lifes. The Banks will write off their debts against tax and they will probably sell the debts on for a small amount, even though they would be unenforceable. Banks often don't tell the companies they sell the debts onto, what the score is. They just include them within a package of debts and it is up to the buyer to carry out due dillgence.

[jimmyay]

Put the ball in their court, by writing to them stating your situation and asking for their help. You don't need to go into too much detail. Just that you are struggling to afford to make repayments and be able to live.

 

Then see how they respond. If you want to rule out any slight possibility of bankuptcy being an opinion, you make token payments to them and when you have been out of the UK for 3 years, you might decide to stop.

 

Given the behaviour of Banks in recent times, I don't have the same moral judgement on people who choose to not repay debt, if they need to move on in their lifes. The Banks will write off their debts against tax and they will probably sell the debts on for a small amount, even though they would be unenforceable. Banks often don't tell the companies they sell the debts onto, what the score is. They just include them within a package of debts and it is up to the buyer to carry out due dillgence.

 

I guess that's the "moral hazard".

 

Thanks for the advice all. I wont be hiding and i will try and come to an agreement with them. I have always paid my debts over the years and will strive to continue to do so. It has to be said though that post 2008, with all the shocking revelations, it's a wonder that anyone bothers to pay at all isnt it.