Running Away from Debt

Demonicomelette

Now before I get flames, please just reply with actual facts, not the moral bashing that maybe I deserve.

I am in about 8k debt, my missus is about 4k. This is the result of the high-interest credit cards and easy credit given to us while we were students. I know, I did the spending, so it IS my fault, but easy credit and all made it all too easy.

Anyway, I am canadian (my girlfriend is English), and have just been offered the opportunity to move back to Canada for a few years.

Now, my question is this: If I know I am not returning to the UK for, say, 5 years, can I just default on all my debts here, and start fresh in Canada? Or does your credit rating follow you? Will the credit-card companies &c follow me there? I know they are international entities, but is it true that they wipe out your debt if you leave the country for a certain period (I've heard 5, 7, and 10 years). I don't plan to apply for any more cards once I'm in Canada, as I'm tired of being in debt.

I know, I know, I have the moral obligation to pay my debts. But to be honest, after reading about all the immoral practices the financial sector have been getting up to, I'm not all that bothered about reneging on MY financial responsibilities. Please don't flame me for this: we all have differing moral compasses, and I'm pretty comfortable with mine.

tony_ack

Not 100% sure on what will 'follow' you, if anything. I guess different countries have different rules? Bankruptcy could be an issue, or may not be?

Either way, bear in mind if you abscond you will effectively burn your credit bridges in the UK for the next 6 years as I guess you'll end up with loads of defaults and GAINs plastered on your credit record? I'm also not too sure how long companies can chase debts for? May be longer than the 6 year period? So you could come back and still be liable for the debt.

Not really too sure beyond that.

Just make sure you don't run up the debt again when you wipe clean in Canada.

Demonicomelette

Thanks for the reply, Tony.
What I was thinking was that if I'm gone for 6 years, the defaults on my history would be wiped clean. But you are right, it all depends how long they can or will pursue me for the debts when I come back...

bexiboo92

I have a feeling debt doesn't follow you; moving to another country will probably make you untraceable.

However, as said above it will burn your bridges in the UK and may take up to 6-10years to recover from it. Just be careful if you ever have to return to the UK, permanently or for a visit whilst you're waiting for the debt to be cleared.

McKneff

Demonicomelette wrote: »

Now before I get flames, please just reply with actual facts, not the moral bashing that maybe I deserve.

I am in about 8k debt, my missus is about 4k. This is the result of the high-interest credit cards and easy credit given to us while we were students. I know, I did the spending, so it IS my fault, but easy credit and all made it all too easy.

Anyway, I am canadian (my girlfriend is English), and have just been offered the opportunity to move back to Canada for a few years.

Now, my question is this: If I know I am not returning to the UK for, say, 5 years, can I just default on all my debts here, and start fresh in Canada? Or does your credit rating follow you? Will the credit-card companies &c follow me there? I know they are international entities, but is it true that they wipe out your debt if you leave the country for a certain period (I've heard 5, 7, and 10 years). I don't plan to apply for any more cards once I'm in Canada, as I'm tired of being in debt.

I know, I know, I have the moral obligation to pay my debts. But to be honest, after reading about all the immoral practices the financial sector have been getting up to, I'm not all that bothered about reneging on MY financial responsibilities. Please don't flame me for this: we all have differing moral compasses, and I'm pretty comfortable with mine.

You really shouldnt be asking us to help you renege on your debts.

The financial instutions mis doing have nothing to do with your sitation. 2 wrongs dont make a right.

If your not bothered about renaging on your financial responsibilites, why are you asking on here.

'Dong flame me' dont be silly, people like you annoy the hell out of me. You should be ashamed of your self. In my eyes, you are morrally bankrupt for even asking.

And debt is never wiped, after 6 years it is statute barred. You still owe it, its just that it is not enforceable through a court.

Demonicomelette

bexiboo92 wrote: »

I have a feeling debt doesn't follow you; moving to another country will probably make you untraceable.

However, as said above it will burn your bridges in the UK and may take up to 6-10years to recover from it. Just be careful if you ever have to return to the UK, permanently or for a visit whilst you're waiting for the debt to be cleared.

Yeah, that might be a risk I'm willing to take. Although, surely visiting would not be a risk? I mean, can they issue a warrant for not paying debt? Surely that ended back when we got rid of the work houses?

McKneff wrote: »

......blah blah blah blah
'Dong flame me' dont be silly, people like you annoy the hell out of me. You should be ashamed of your self. In my eyes, you are morrally bankrupt for even asking.....blah blah blah

Whatever, like I said, I'm not the slightest bothered. I'm worried about the practical implications, I will leave the ethical implications up to Jesus, Muhhamed, Buddha, or the Flying Spaghetti Monster. I sleep fine at night.

McKneff wrote: »

And debt is never wiped, after 6 years it is statute barred. You still owe it, its just that it is not enforceable through a court.

Thanks for the info. So if they can't enforce it, and it's removed from your credit history, does it matter?

fermi

A few links that may help:

http://www.experian.co.uk/consumer/questions/askjames242.html

http://www.experian.co.uk/consumer/questions/askjames225.html

http://www.debtquestions.co.uk/topic_of_the_month.php

Not all are directly about Canada, but similar principles would apply.

Demonicomelette

Thanks for that, Fermi. Answers a lot of my questions, without being preachy. Looks like Canada and the UK have a reciprocal agreement, which means this might not be such a great idea. !!!!!!. Saying that, the Cayman Islands has a better climate.

bexiboo92

Why are you running anyway?

Pretty sure other people have bigger and worse debts and manage to sort themselves out.

Demonicomelette

bexiboo92 wrote: »

Why are you running anyway?

Pretty sure other people have bigger and worse debts and manage to sort themselves out.

The running away is not the first priority. I'm considering moving anyway, the running away would just be a bonus.

jobdone1

well i will be very critical on you this is disgraceful on your part it will be the uk consumer that will pick up your mess via higher credit apr charges and higher mortgage cost as this is the way the banks get their money back thanks to the selfish few like you