Overseas and struggling

[unclebulgaria67]

Are you planning to return to the UK at some point ?

 

It is important that you write to all UK creditors to confirm you live abroad. It is important that they know your finances have been impacted by Coronavirus and you are now in a financial hardship crisis position. This is so they can have no excuse of not trying to assist by not applying fees or increasing interest rate.

 

Your problem is that you own UK property, so you must remain in contact with UK creditors with them knowing you live outside the UK.  This will hopefully help to protect your UK property interests, by making it more difficult, as UK  creditors will know they have to follow correct legal process, where the debtor is abroad.

 

Are debts in one name only ? Or do you both have debts ?

 

Approximately how much is owed for each debt and what type of account ?

 

Approximately when did you take out these accounts originally ?

 

In regard to the mortgaged property in the UK which you have let to tenants, please answer following questions.

 

Is the mortgage on a buy to let basis or did you have permission from the mortgage company to let to tenants ?

 

Was the property your main residence in the UK, before you moved abroad, therefore UK creditors will have record of this address ?

 

Would you have any equity in the property after all selling costs if it were sold ?

 

Is the property in joint names of yourself and your spouse ?

 

 

[unclebulgaria67]

You want to avoid any CCJ's, by ensuring all UK creditors have your current address abroad.  Also as dx suggests, making small payments based on current affordability would be wise.   Keeping the accounts running with original creditors bu making minimal payments, will give you time to consider options.

 

If it were myself in this position, I would be thinking how quickly could I get the tenants to vacate the UK property and how quickly could it be sold.  This would enable me to at least retrieve some equity after repaying any secured loan and the equity would then enable me to plan the next steps in my life.  I am not advocating walking away from debts, but I would be thinking, that if I end up with CCJ's or worse Bankruptcy, then with additional costs being added, I would have no money left.  And worse, if I had  to sell the property quickly, it may sell at a reduced price and I could still owe a debt after it had been sold.

 

So may be you should be getting some formal financial/legal advice in the near future, to see what you can do, to protects your interests as much as possible.

 

 

[unclebulgaria67]

This is where it gets complicated because of the UK property asset.  Although you are living abroad, you have active financial interests in the UK.  And any debt buying DCA is going to be really really interested in your UK property. They will carry out reviews of your UK credit history and may also check land registry.  As soon as they see you have a property asset, they may pursue your debts more agressively. 

 

With DCA's who buy debts for about 10% of their value, it is all about the profit they can make.  And the amount involved may make it attractive to incur legal costs in an attempt to maximise the return they can achieve.

 

If you cannot sell the UK property, then yes you could stop paying, let the debts default, but in those 6 years, before the debts drop off your UK credit record, you are going to be in for a pretty stressful time.  They  (DCA's) are pretty likely to write to the UK address, even if you have told them you live abroad.  And they may send recovery agents to the address to make enquiries. 

 

As dx says Bankruptcy is much more difficult for creditors to apply for now.  But there are processes that can enable UK creditors to obtain CCJ's in the debtors absence from the UK.  This is helped by your continued financial activity in the UK, because of the UK property.

 

Re rate setter request, yes this is a anti-fraud protection and also to confirm you definitely live aborad.

 

[unclebulgaria67]

No they are not entitled to see payslips. Only if this ever went to Court and it was part of the Court process would this be required. So the information you provide needs to be accurate, in the remote possibility that your information is passed to a DCA who uses it in Court in the future.

 

Just enter all information onto your income/expenses sheet in Pounds Sterling.

 

 

 

 

[unclebulgaria67]

What can they really do in this situation ?  No point in being agressive, as it is not really going to change what is possible. 

 

Creditors can be very sneaky and stitch up debt buyers.  Would not surprise me, if your debts were sold on as part of a larger package of non performing debts and they did note disclose any information about you being abroad or about the communications they have had with you.  Many years ago a relative of mine moved abroad leaving a number of debts. The foreign address was known to creditors, but they decided to just sell on the debts and the debt buyers resold the debts. The debts just circulated around for years, until they were written off.  But these were not secured debts.  Sometimes creditors just want the debts off their books and given to another company to worry about.

 

 

[unclebulgaria67]

It may be worth looking into notes that you can add to your UK credit reference information, that you are living abroad and noting your foreign address.

 

The reason why this may be helpful, is that creditors do not normally add foreign address information to credit records.   If any debts are then sold on without disclosing information,  it is possible that your previous communications are ignored by new debt owners/DCA and they obtain a CCJ using last noted UK address. Of course you could then try to set aside later, but this would still be a hassle.  If your UK credit record had notes about living abroad, then they cannot really have any excuse for not contacting you using your foreign address.

 

Just a thought.

[unclebulgaria67]

Probably getting ready to sell the debt on.

 

You could send them a letter informing Amex that their letter took 1 month to be received.  Also ask them to note your credit record that you are not resident in the UK.  Which they probably won't do, but the request will be on record.