Biggish debt - what will happen??

Reeves

This really isn't me who I'm talking about, not that it really matters but anyway ... my sister-in-law and husband amounted what I would call a considerable amount of debt from various sources i.e. gas, electric, loans etc. and consolidated most of it into a loan that will take approximately 20 years to pay off at £100 a month. Plus there is probably more debt that they have avoided but I don't know the full details. They emigrated to Australia last year for a new start/job not leaving any contact details for the outstanding debts and from what I believe maybe the consolidated loan as well. To cut a long story short, they have not settled and are now back in Britain and I am wondering what will happen now regarding these debts. When they start working will the companies be alerted as soon as tax/ni contributions are registered or will they even be able to track them down unless they apply for credit again? I am curious but it is not only them but their kids I am concerned for if this escalates. Thanks in advance for your comments.

GeorgeUK

Don't know if anything will happen if they start working - it's often if they go on the electoral roll or look at their credit file that causes the most attention.

As none of the debts are more than 6 years old, they won't be statute barred. Probably the best thing they can do is contact one of the free debt charities such as CCCS and ask what their next step should be. I wouldn't advise them trying to get credit from a bank they owe money to and definately don't get their wages paid into a bank they owe to.

CCCS_Sarah

Hi Reeves,

Debts generally do catch up with people, so better to make steps to pay them back sooner rather than later.

Creditors use various methods to trace people such as credit searches, voters roll etc

If your sister in law is unsure of her debts, it might be worth her getting a copy of her credit file. Once they have this information they can start making steps to put a budget together.

If they need a bit of time to find jobs etc then they would be able to make a goodwill gesture payment until they are back on there feet – even if it’s just £1.