debt and moving abroad

[mescalito]

hi everyone, this is my first post, although i've been a member for about 2 years. i find this site phenomenally helpful.

 

this is the issue i have. my wife and i are moving to Oz with our two kids.

 

we're going on a student visa (subclass 572), she's studying and i'm working, so we won't be "residents" at first. we hope to gain residency in the future, probably around 5 years away.

 

the problem is i'm in a debt management plan at the moment, all the debt is in my name, around £33k.

 

most of the debts are with collectors now, here they are and who they're with:-

 

1 Halifax

(Bank Overdraft) £4000

 

2 Co-operative Bank

(Credit Card) £123

 

3 Barclaycard

(Credit Card) £3300

 

4 Blair Oliver and Scott Ltd

(Debt Collection Agency) £14150

 

5 Clarity

(Debt Collection Agency) £2600

 

6 Direct Legal and Collections £8500

(Debt Collection Agency)

 

 

i know this looks bad but i had some bad luck business wise in 2008 and the debts mounted up quickly. i've claimed back the PPI on all of them so that helped.

 

my question is this- as we will not be permanent residents in Oz for a few years, will they be able to apply through the courts in the U.K to make me pay the debts?

 

i'm paying £100 a month towards them at the moment but won't be able to keep up the payments when we go, maybe i can reduce the payment further to keep them off my back while we get settled.

 

also, if i keep my head down and put everything in the wife's name over there, will they find me?

 

please don't judge me too harshly, i'd prefer to pay them off but it's just not possible as we need all the money we can save to go with, and if we make it over there then there's always a chance i'll be able to in the future. whereas if we stay here they'll be around my neck until the day i die.

 

thanks in advance for any info anyone can give, it'll be much appreciated.......

[rebel11]

Hi mes

 

Welcome to CAG

 

The guys will be happy to advise as soon as they are available.

 

Thread has been moved to the correct forum.

[silverfox1961]

Hi

I suggest a good read of this excellent thread

http://www.consumeractiongroup.co.uk/forum/showthread.php?250889-Can-I-Be-Sued-For-An-Overseas-Debt

[Bang!]

I should add - my other UK cards still work, and I have been on th UK voters roll for the entire period.

[unclebulgaria67]

You need to avoid getting CCJ's before you go to OZ. If they get CCJ's before you go, then they can enforce using OZ courts.

 

Because you are financially linked to your wife, they will find you in OZ anyway. It is a small world, as the Credit Reference Agencies operate on a worldwide basis. So as soon as your wife opens up a OZ bank account with her new residential address, they will find you. It may take them awhile before they start to send letters.

 

It is in your interest to let them know of your move abroad, once you have left the country. If you can continue to make small token payments, that would save you some hassle. They should not go to a UK court once you have left the country, as you could not defend the action. If they knew you were abroad and did not tell the court this, then any judgement could be set aside. It would therefore be a good idea, to get these companies to provide written acknowledgement that they know you are abroad.

 

If you stopped paying them even token payments while in OZ, they will just employ aussie debt collectors to hassle you, even if they could not take it to an aussie court. They could get a UK CCJ by mistakenly not telling the court you were abroad and then trying to enforce in OZ. You would then have the hassle of having to employ a solicitor in the UK to get the CCJ set aide, as I doubt you want to come all the way back to the UK. This is why, you might want to continue token payment and tell them of your situation.

[cerberusalert]

Do you have any assets here in the UK? If not you could look into applying for bankruptcy before you leave although you can still do that within 3 years of you leaving.

[mescalito]

Do you have any assets here in the UK? If not you could look into applying for bankruptcy before you leave although you can still do that within 3 years of you leaving.

 

 

hi, thanks for the reply's.

 

i have no assets in this country except money. if i apply for bankruptcy won't they just take the money off me?

 

i need the money to move with, but all my wages go into my wife's account instead of mine, does that make any difference?

 

if i did go bankrupt, would i have to pay into it for three years even if i'm in another country?

 

i also have no ccj's and won't get any before i go as i'm still paying them.

 

how much will they usually except? i've heard they'll pretty much accept any payment as long as it's regularly paid. i'll have to quit my job before i go so will have no income, i thought about telling the debt management people that i've lost my job so will have to reduce the payments to about £50.

Edited February 29, 2012 by mescalito
missed something out.

[cerberusalert]

If you applied for bankruptcy before you left then you would have to declare that money, but as I said you can still apply for bankruptcy up to three years after you leave.

 

Bankruptcy normally only lasts for a year but it will remain on your UK credit file for six years but not on your Oz file.

 

i need the money to move with, but all my wages go into my wife's account instead of mine, does that make any difference?

if they managed to obtain a CCJ before you leave and you are still earning here they could apply for an attachment of earnings order where money would be deducted at source, but that would be many months down the line.

 

i thought about telling the debt management people that i've lost my job so will have to reduce the payments to about £50.

Is it one of the charities or are you paying a company for the privilege of doing something you could do yourself?

[mescalito]

very sorry for the late reply, my computer had a break down.

 

i use a company that i pay to talk to the creditors, they're pretty good but are the people who told me that bankruptcy would last 3 years and that every spare penny i earned would go into it.

 

if i applied for bankruptcy from abroad would i have to tell them how much i'm earning there or is it just what i earn in the U.K tha counts?

[unclebulgaria67]

I am sure that any insolvency practitioner would ask for details of your financial position, even if you were living abroad.

 

There is a site removed that you may wish to read for information. As with all internet advertised companies, I would suggest that you look into it, before you consider using them. There are plenty of other choices. CCCS may also be able to advise you on this.

[mescalito]

great, i'll check them out.

 

when they told me the bankruptcy lasts 3 years, is that them just trying to dissuade me from going down that road so i keep paying them, or do i have to pay in every last penny i earn aside from essential living expenses for 3 years?

[unclebulgaria67]

Read this. http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/Bankruptcy/DG_187323

 

Normally 12 months. But it says that you can have to pay out of earnings for up to 3 years. ( I think that it what it says)

[mescalito]

just spoke to removed very helpful. lots to think about.

 

when people talk about token payments to debt management plans what is realistically the lowest amount i could offer them on £33k over six creditors?

[cerberusalert]

They are not priority debts so you should only repay them what you can realistically afford & if that's only £10 or £20 per month so be it. Some people can only afford £1 per month.

 

If you reduce your payments it is likely that your DMP will refuse to continue to act for you, after all they will be losing the commission, but there is absolutely nothing to stop you from taking over the management yourself.

[mescalito]

what would be priority debts? council tax and that type of thing?

 

i think i'll try and keep the dmp going as they are quite pro-active when it come to speaking to the creditors, i haven't had to submit any paperwork for 2 years and i've reduced the payment by half.

 

if i reduce it too much they may take me to court, which is something i want to avoid. i could maybe reduce the payment just before we go as i will be unemployed then.

[cerberusalert]

what would be priority debts? council tax and that type of thing?

Yes & mortgage, rent tax etc or any debt secured to property.

[mescalito]

i've got none of that so it should be ok.

 

what do i do about contacting the creditors if i want to cancel the dmp? do i just call them and tell them how much i can offer them?

 

i only hesitate to do this as i don't want to be stuck abroad with nobody to fight my corner here.

[cerberusalert]

what do i do about contacting the creditors if i want to cancel the dmp? do i just call them and tell them how much i can offer them?

It would be better to email or write to them. they will come out with all sorts of nonsense and threats over the 'phone so it's always better to have a paper trail of evidence as to what has been said.

[mescalito]

thanks for all the reply's, you've been very helpful.

 

i'm sure i'll post on here again before i go with more questions, hopefully some answers too.

[mescalito]

Hi, ive just found out I owe Lowell portfolio/ red debt collections £165.

 

I left the country three years ago and have just looked at mine and my wife's credit report as we are thinking of coming home.

 

Before we left I paid off £29k of debt with £8k. So on the credit report there are a few partial settlements but nothing about a debt to Lowell or Red for £165.

 

My wife on the other hand has a default notice one her credit report saying she owes Lowell £35.

 

My debt with them is for a T mobile account which I thought I'd paid before we left. I doubt I did though as I was in dispute with them over their underhand practices of sending out new internet dongles which then constituted a new contract, even though I hadn't asked for one and didn't need one.

 

So my question is, could they have reported the debt on my wife's credit report in error as we are financially linked? My wife never had a T mobile account and always had pay as you go mobiles.

 

Also, if they have reported it in error on hers, could I use that information to make a deal with them ? i.e. pay them off under the condition they remove the default notice from her report and leave mine as it is.

 

Thanks in advance for any info.

[unclebulgaria67]

Unlikely the debts are on the wrong credit reports, but a bit odd if she has never had anything which would report to her record.

 

Best advice is to wait until you are back in the UK and pretty soon after you start registering a new UK address, you will start to see communications.

 

 

The debt companies seem to have a portal to CRA's, which picks up any change to credit records on their systems.

 

 

Once you have a letter with more information, you can deal with it.

 

 

If your wife wants to clear her record, she could register a dispute with the CRA

 

 

and the CRA will contact Lowell asking them to investigate.

[dx100uk]

For history I've merged you old and new threads

 

I question your wisdom on blindly paying debts off to powerless dca's

 

Dx

[mescalito]

thanks for the info and the thread merging.

 

it's relatively small amount to pay so that's not the issue, we just don't want any further negative impact on our credit rating.

 

i don't understand why it's not on my credit report,

 

i do remember leaving the debt unpaid now.

 

the letters have been going to my last U.K address so they obviously know where i lived.

 

unclebulgaria67, we'd rather pay for it before we return so as not to have any nasty surprises.

do you think i could pay it without them placing a default notice on my credit report?

 

i'm 5 hours behind you guys, in and out all day so please forgive any late responses.....

[unclebulgaria67]

thanks for the info and the thread merging.

 

it's relatively small amount to pay so that's not the issue, we just don't want any further negative impact on our credit rating.

 

 

i don't understand why it's not on my credit report,

 

 

i do remember leaving the debt unpaid now.

 

 

the letters have been going to my last U.K address so they obviously know where i lived.

 

unclebulgaria67, we'd rather pay for it before we return so as not to have any nasty surprises.

do you think i could pay it without them placing a default notice on my credit report?

 

i'm 5 hours behind you guys, in and out all day so please forgive any late responses.....

 

Why not email Lowell to request details and you can pay it if you wish. The credit record would then just show as satisfied, so nothing outstanding. They won't remove defaults, unless there was an issue with the default. If you look on Lowells site, you should find an email address.

[dx100uk]

are you sure the debt originated from o2?

 

 

don't assume