Need some info about inter EU debt

[birdielein]

Hi all,

 

This is one of the best websites on debt I have seen, and I am hoping you can help.

 

I am a canadian and I live in Germany. I was freelancing and life went into the toilet. I have a debt that isnt huge, but it doesnt matter, it is insurmountable at the moment. They shut off a bank account, but a friend has helped me with this by letting me run my pay through theirs. I am being put on the bad german debt list and a bailiff is involved here. I am presently working towards a payment plan with the bailiff because finally I have a job that pays more than 800€ a month. Oh the Berlin dream which turned into a nightmare.

 

I am in the process of moving to france and I am wondering how possible is it for them to close my bank accounts in france. Is bad credit in germany equal to bad credit in france? I had really hoped a new country would give me a clean slate. I feel like have to move to Botswana for that now.

 

I know I am not BRitish, and it isnt british debt, but you seem like lovely people with lots of knowledge.

Thank you so much,

Birdie

[unclebulgaria67]

The debt/credit records are separate to each country, presumably because each country has their own data protection laws and courts system. In regard to moving country and setting up anything financial, you may be asked to provide your credit record for the previous country. i.e the French Bank may ask you to provide details of your German credit record. Having said that when friends moved to Spain, the Spanish Banks did not ask for UK records, so I guess it depends on the process followed by the Bank you apply to.

 

In regard to enforcement of debts, the German Bank could apply for a European Enforcement Order (EEO) to a court in France if you stopped repayments. You should then get notice from the French court and if you successfully disputed the debt in someway, the Bank would have to go back to the German courts if they wanted to try to enforce.

 

To summarise, you should not have a problem opening a basic bank account in France, once you have registered yourself as living there. Make some enquiries about the process of opening an account and what information they would need.

 

In regard to enforcement of any debt cross border, this is not always that easy. You would be wise to look at potential reasons for dispute, just in case the German Bank ever tried with an EEO. e.g a dispute may be about unfair levels of charges on the account or problems with documents not being received. You would need to look into German debt collection rules that have to be followed by their Banks.

[birdielein]

Thank you so much!

 

I really appreciate the advice and information. I just felt sick about it- I was told all the systems were interconnected and that I ws so screwed.

[renegadeimp]

Who told you that? The company chasing you?

[birdielein]

No, a friend who was doing some looking into things, and is a bit of a worst case scenario fellow. He said they could arrest me because I hadn't signed this particular form here in germany. One that says I am insolvent. Which I think is maybe an extreme measure.

[birdielein]

But to be fair, the german system is INCREDIBLY draconian.

[renegadeimp]

They cant arrest you. Debt is not a criminal offence in europe.

[unclebulgaria67]

No, a friend who was doing some looking into things, and is a bit of a worst case scenario fellow. He said they could arrest me because I hadn't signed this particular form here in germany. One that says I am insolvent. Which I think is maybe an extreme measure.

 

There are obviously laws that relate to debts you owe the state e.g taxes, which would be a criminal matter.

 

There are also laws regarding running an insolvent business, which can also lead to someone being arrested. If you were running a business taking money off people for work to be done or goods to be supplied and could not do so because you were insolvent, that many be a criminal offence in some countries. If you are in this situation, you should obtain proper legal advice.