I'm a Guarantor what happens if I leave the country

desaber

4 years ago I stupidly acted as guarantor on a large loan for my then partner, needless to say were no longer together and she has went back to uni leaving me with the payments.

I've got the opportunity of a new job abroad and I'm thinking of taking it but to continue to pay the loan would make it almost an impossibility to afford to move and setup a new home.

If I simply walk away will they revert back to chasing my ex? I'm not really worried about my own credit rating as I doubt I'll ever be coming back to the UK (I've lived in the new country before and know I'll be happy there) but dont want to suddenly find myself with a court judgement that can be enforced in the EU

DarkConvict

Chasing debts out the country is difficult, but i believe if you are living within the EU they may find it possible to chase you and obtain for payment. If you live outside the EU, i.e. USA/Australia then i believe they can't do anything other than send letters.

bargainbetty

Actually, there have been a few instances where creditors in the UK have applied for and received judgements against ex-pats in Australia. You cannot run far enough, it seems!

Can you not contact your ex and ask her to pay a reasonable sum towards it? If not, and you could provide sufficent evidence to show that you took the loan on for her, and she benefited from it, you might be able to go after about £5000 through the small claims court.

If you filed the papers, if might make her sit up and think.

Good luck x

immoral_angeluk

They may also file for bankruptcy in your abscence..

Tixy

It depends on what country you are going to - a few have reciporacal agreements re consumer credit.

Another option - would you be in a position to make a reduced full & final settlement on the loan? As you were the guarantor and because you are emigrating they may be willing to accept a reduced sum.

How much do you owe? do you have any assets in the UK? rather than just a CCJ you could actually be made bankrupt in your abscence - and should you need to return unexpectedly (eg ill-health or family issues) then you could find things difficult.

Finally - if you cannot afford the full repayment amount you could offer to continue to pay the loan but at a reduced repayment level (and you could also try asking them to freeze interest).

desaber

Thanks for the information

The balance of the debt is around 14,000 outstanding with 23 payments still to go, it's actually two seperate loans Nationwide has roughly 5000 left and a HSBC has a balance of around 9000 left. This will probably be reduced to nearly 12,000 as it will be at least 3 months before I can move unless I stop payments immediately

There is no chance of getting my ex to contribute anything, she is now upto her eyes in more debt (I have no idea how she was able to get more credit) and has actually had the cheek to try and ask me for money to pay her rent. It would be easy enough to prove that she benefitted from the loan but she has no assets or ability to pay. I asked a solicitor friend of mine if there was any chance of having my name removed from the loan but he was extremely doubtful

I've not got any assets that could be seized or have a charge raised against although I will eventually inherit a property (hopefully not for a few years). The only amounts I could offer in settlement without making my plans unviable would be double the monthly payment and I doubt that either would settle for 10% of the outstanding balance.

It's going to be Germany if I do take position, does anybody know if they have a reciprocal agreement with the UK over consumer debt ? I'm actually thinking that with the debt being two smaller amounts they may not bother with the expense of chasing via the courts due to the additional expense even if they do locate me or is that just wishful thinking

bargainbetty

If you could get a court order confirming that she is responsible for some of the debt, it would only mean they couldn't chase you for all of it.

If you are declared bankrupt in the UK it could affect your ability to get a mortgage, take certain jobs, or obtain credit. I honestly don't know Germany's specific trade agreement with the UK on debts, but it is getting harder and harder to avoid them, even overseas.

If you might inherit a property, you may find the bank try to take out a CCJ or charging order against you, to try to force the sale of the property to recover the money.

Personally, I'd go small claims against her to prove her share of the debt, and then offer smaller affordable payments on the rest. Ask them to freeze interest in exchange for her details so they can set up a repayment plan with her for at least £5000 of the debt. Sorry to be mercenary, but you can't bail her out, nor should she expect you to.

Good luck in Germany x

DarkConvict

If you could get a court order confirming that she is responsible for some of the debt, it would only mean they couldn't chase you for all of it.

Incorrect, as the account is joint the other holder is already liable. And with all debts both holders are liable for the amount in full. In joint accounts there is not a 50/50 split on liability. The more account holders the more people they can chase.

Tixy

I think with the OP having signed up to be guarantor then proving it was the partners debt won't actually help. I don't think (but I don't know) that Germany is one of the countries with agreements, that said with being part of the EC I would not be suprised if they can actually chase you somehow.

DVardysShadow

DarkConvict wrote: »

Incorrect, as the account is joint the other holder is already liable. And with all debts both holders are liable for the amount in full. In joint accounts there is not a 50/50 split on liability. The more account holders the more people they can chase.

Er... No. Right answer, wrong reason OP is guarantor for ex's loan. Guarantor is responsible for default on the part of Borrower.