Any advice appreciated - very old, very bad debt

[alice76]

Hi All,

 

I've got a zinger for you here, and not one I'm proud of. I left the UK almost 9 years ago and, being very young, off to start a new life, it didn't even occur to me that there would be procedures to follow in doing so. I hopped off to America in early 2001 to get married with very little in my bank account, and didn't inform any creditors. At the time I had two student loans from 97/98, around 1500 GBP each I believe. Until about 2003 I was filing the deferment forms each year.

 

Having lived in the States this whole time, it is only in the last three years that I would have had to be making the student loan payments triggered by a higher income level. At the time I took out my student loans, I think I had to be making at least 25,000 GBP to have to repay. Also, in 2002 or 2003, when I was visiting family in England, I took out a loan from Lloyds bank. They did this because I had been shuffling money on via a standing order between two accounts to keep them active. I believe the loan was for about 4000 GBP. I made around four payments and then, with no income to pay them, just stopped. After my divorce, I moved to a different state and simply put it out of my mind.

 

I haven't heard from any creditors in at least 5 years, possibly 6. I have moved around a lot, but to my knowledge have not had endless letters sent to old addresses, as my family/former roomates would have told me.

 

Now I'm older and wiser, I can't believe I acted so irresponsibly and buried my head in the sand. It seems like another person, another life, which in a way is true. I didn't intend to skip out, but that's what I did and now I'm sure it is a giant sticky mess and I just don't know what to do about it. I'm almost terrified to open up this can of worms, but it has to be done. The total amount owed at the time of default must have been about 7,000 GBP over the student and bank loans, including interest. Believe it or not, I don't know the exact amount because every single piece of paperwork vanished during my divorce. I don't even know my own National Insurance Number currently.

 

With the economic crisis, even worse in America than it is in the U.K. I am worse off than ever, but understanding that I need to sort out my debt situation, even if I never move back to the U.K. I just can't have it hanging over my head.

 

Even anonymously, this is embarrassing and shameful to admit. if anyone has any advice for me about my situation, where and how to start, or insight into how my creditors might react at this point, I would be grateful. I'm actually not in a position to repay anything at the moment, but would like to somehow clear the decks.

 

Thank you so much,

 

A

[smouk]

Not sure on loans from the SLC - I think they can stay on file even through bankruptcy depending upon loan account status and when they were taken out.

[hunni2006]

Not sure on loans from the SLC - I think they can stay on file even through bankruptcy depending upon loan account status and when they were taken out.

 

would be interesting to find out....

[Regulus]

Not sure on loans from the SLC - I think they can stay on file even through bankruptcy depending upon loan account status and when they were taken out.

 

I've heard this too. But isn't it also the case that student loans will only be claimed back when you can afford to repay them, which is why they set a pay scale to dictate when they can start reclaiming money?