Debt, IVA's and Moving Overseas

Lewis81

Hi, I have a number of questions and would really appreciate some advice. Bare with me, it's all a bit confusing!

I have been paying off a nasty debt for a number of years (approximately 6 years now) via PayPlan, which I believe are either IVA's or Debt Management Plans (I'm confused over the difference, which is stupid seeing as so much time has passed!)

I am now intending to moving to the USA (within the next month) and am wondering how best to deal with these debts. I have a small amount of money which I can use to pay off some of the smaller debts (I am hoping to get them to take offers). Which will potentially leave me with 3 large debts.

A couple of the debts are with CL Finance (old HSBC loan and account), but I have seen a lot of stuff saying do not contact them, however, one of the debts is one I'd like to pay off, so what should I do. I'd like to make an offer on this debt rather than pay it in full (if I can), but a lot of people say do not phoneCL Finance. So what should I do? Can I make an offer via post, baring in mind the short timescale before I move to the USA?

Regarding the other debts, what are my obligations to make payment when in another country, specifically the USA, and how can this effect my credit rating there? I potentially will not be earing any money for a while, but don't want to leave myself in a worse position that I started if I return to the UK.

Also, I'd be interested to know, if I do earn money in the USA, can my UK creditors find out how much and stake a claim on it?

What do I do regarding forwarding addresses etc? I could give my parents address, but I'm concerned that this may mean they could be hassled for my debts, which I obviously do not want as they are getting elderly. Can I just give my USA address?

I probably have more questions, but this is a good start......

Thanks in advance for your help.

bargainbetty

If you have made a commitment to repay the loan, your commitment remains in place. If you fail to make payments, you will face the consequences when you return to the UK, if not before. I would recommend you check the reciprocal treaties between the two countries regarding offshore debts and the ability for creditors to apply deductions to your wages.

If you have sufficient to pay the debts until you get work in the USA, perhaps you could leave it in an account to continue the payments until you get on your feet - better than defaulting, surely? Give them an email address for correspondence, detailing your relcoation and USA address.

Once you get on your feet, you'll be in a better position to offer F&F settlements - but always do it in writing! Offers and acceptance must be in writing and state full settlement - no partials that can be sold on.

Good luck

Lewis81

Thanks for the replies.

I think you are right when you say I have DMP's rather than IVA's. I have never formally agreed to anything, and certainly would know if the agreement was about to end (I'd be planning the party!).

I will not have the funds to keep paying the debts off when I get to the States, but could offer to pay a reduced amount, say a minimum amount of maybe £20 a month split between my creditors.

Do you think it is worth discussing this situation with Payplan? As they are obviously the people I pay through.

What I don't want to do is be paying this for the rest of my life unecessarily, but also appreciate that I got myself here (with a little help from irresponsible banks).

What's to stop me just declaring myself bankrupt before I leave for the US?

Also, what really are the implications of just defaulting on the payments? Would the debt just be written off after a number of years, and if I returned to the UK after not paying for a period, would I really be in that much worse position?

Thanks again in advance for your advice.

Tixy

Absolutely talk to payplan. They probably won't administer payments for you if you drop to token payments but will give you advice on continuing to pay something to your creditors yourself.

Nothing is stopping you declaring yourself bankrupt before you go in theory, but you would need to have the bankruptcy fee and get proper advice etc and a court date and might be pushing to get it sorted in less than a month. Also I would check whether if you are bankrupt whether this would cause any issues with your visa etc for the states.

If you just stop paying then your creditors may just chase you in your absence but they may go to court in your absence and obtain CCJs against you.
If they don't take court action then the debts would not ever be written off but after 6years of non payment and not corresponding with them the debt would become statute barred - this means the debt still exists but they cannot take you to court.
If they obtain CCJs against you then the debts will never become statute barred. After 6years from a CCJ they have to go back to court to obtain permission to continue to chase you. But if you have been out of the country for say 8, 9 years then this would usually be a reasonable reason for the creditor to get the CCJ extended.

If you returned to have CCJs then I would say you would be in a worse position. If you come back then bailiffs could be instructed to recover funds or if you started employment in the UK then they could apply for an attachment of earnings etc.

Will you have any assets in the UK once you leave for the states? I assume you are not a homeowner? do you own a car or other assets?

ceejaydee23

I dont mean to be rude in asking,(but i do think its kind of an obvious question) But if you are unable to afford to pay off the debts you have, how on earth are you affording to move to USA? especially when you yourself don't have a job to go to? Are you going because of a partner having a job?