Urgent Advice needed. Leaving UK with 30k debt

dave12367

Hello All

I would really appreciate an honest advice here.

I have a 30k debt which i owe to different banks including some pay day loans, credit cards and some unpaid mobile phone contract.

I am broke lost my job and not in any position to pay back. I am also leaving the country permanantly.

My questions are.

1. will the creditors chase me abroad.

2. Will the creditors in Uk able to find out if i have a completely new separate bank account in uk.

3. will they have the power to freeze my bank account which is completely separate to my debts

4. will this be a problem for me if later in life i decide to immigrate to canada.

please let me know

thanks very much.

ViolaLass

Brace yourself, it's not going to be pretty.

jobdone1

disgracefull

zzzLazyDaisy

dave12367 wrote: »

Hello All

I would really appreciate an honest advice here.

I have a 30k debt which i owe to different banks including some pay day loans, credit cards and some unpaid mobile phone contract.

I am broke lost my job and not in any position to pay back. I am also leaving the country permanantly.

My questions are.

1. will the creditors chase me abroad.

Probably not as enforcing the debt abroad would be costly and difficult


2. Will the creditors in Uk able to find out if i have a completely new separate bank account in uk.

Yes, if they choose to investigate, that is entirely possible

3. will they have the power to freeze my bank account which is completely separate to my debts

Yes, if a debtor gets a CCJ against you they can apply to enforce it against any of the debtor's assets (although they would obviously have to know the details of your bank account)

4. will this be a problem for me if later in life i decide to immigrate to canada.

Yes. The immigration application papers state that nationality papers will NOT be issued to any one who has an uncleared debt in their country of origin. So if you emigrated to Canada and the debt became known, you would be forced to leave. If you left Canada for a short holiday you might be refused re-entry.

please let me know

thanks very much.

If you leave owing money, the most likely result will be that the creditors will lodge proceedings against your last known address and get CCJs in your absence. Even if they don't the debts will be on your credit record, so at least for the next 6 years a simple credit check will show the authorities that you have debts and your application to emigrate to certain countries will be refused, including Canada, America, and Australia

fermi

zzzLazyDaisy wrote: »

Yes, if a debtor gets a CCJ against you they can apply to enforce it against any of the debtor's assets (although they would obviously have to know the details of your bank account)

No. They don't need account details.

They just need grounds to suspect that you hold an account with that bank.

The bank is obliged to search to identify all accounts held by that person, the amounts held etc........

http://www.justice.gov.uk/courts/procedure-rules/civil/rules/part72#IDATHWKC

dave12367

zzzLazyDaisy wrote: »

If you leave owing money, the most likely result will be that the creditors will lodge proceedings against your last known address and get CCJs in your absence. Even if they don't the debts will be on your credit record, so at least for the next 6 years a simple credit check will show the authorities that you have debts and your application to emigrate to certain countries will be refused, including Canada, America, and Australia

Thanks for your reply.

But immmigration for canada requires police certificate only and police certificate only lists criminal record. i have read that non payment of debt is not criminal offence. Please advise

dave12367

fermi wrote: »

No. They don't need account details.

They just need grounds to suspect that you hold an account with that bank.

The bank is obliged to search to identify all accounts held by that person, the amounts held etc........


i have been advised that it is safe to open another bank account which is completely separate and i can ignore my debts as long as i am out of uk. please see here at money.co.uk

Worried that cash will be taken from your bank account by companies you owe money to? We explain whether this is likely and what you can do about it.


Whether a debt collection agency can claim money from your bank account depends on the type of debt you have.

In most cases the decision to issue payments or freeze your accounts can only be taken by your bank; whether they do this depends on who you owe money to.

Owing money to your bank

If you’ve fallen behind on credit card or loan repayments with a bank that you also have savings or current accounts with you need to be careful.

Banks can invoke something called ‘Right to Set-Off’ and this means they can take money out of any savings or current accounts that you have with them and put it towards your unpaid debts.

They can do this without your permission, and while they are meant to leave you with enough money to live on there’s no hard and fast rule about how much!

Mortgages are treated a little differently so your bank can’t simply withdraw the money you owe them from your accounts and use it towards your mortgage arrears.

However, they can withdraw an agreed overdraft facility and demand repayment at any time; they could also choose to lower your overdraft limit after money has been paid into your account.

How to protect yourself

It’s a good idea to keep your current and/or savings accounts with a bank that’s completely separate to the one you owe money to.

Care is needed as some banks are linked even though they operate under different names.

To protect yourself you need to keep your current account and savings with a bank or building society that isn't associated (it needs to have a separate FSA licence).

You can use our FSCS search to find out which banks and building societies are linked and our current account comparison and savings account comparison to find suitable accounts with an unconnected bank if you need to.

Owing money to a different company

Lendors and creditors that you don’t bank with need to apply to the courts and get permission to take your money before they can access to your bank accounts. They can either do this directly or via a debt collection agency.

This isn’t an easy process and requires several separate court applications before your accounts can be frozen – this is likely to take weeks or months rather than days.

Initially the lender needs to apply for an interim third party debt order. If granted this forces your bank to freeze your account and ring fence the money you owe.

The next step is for them to apply for an order to obtain information – this means you will be called to court and made to give details about your bank accounts under oath.

Finally, they need a full third party debt order before they can take money from your bank account. This can only be granted at least 28 days after the first interim third party debt order – at your final court hearing.

For more information on the different stages of court applications and what you can do to stop a lender freezing your accounts visit the Citizen’s Advice Bureau website.







is this advice far fetched?

recoverydust

1. You seem to know quite a lot about this
2. Why would you leave money in a UK bank when you are leaving the country?

dave12367

recoverydust wrote: »

1. You seem to know quite a lot about this
2. Why would you leave money in a UK bank when you are leaving the country?

i just need to leave it for 2 months as i am due to receive my redundancy settlement.

recoverydust

So with that settlement, maybe, you could negotiate to pay off your debts with a reduced full and final settlement?
Are you leaving the country to work?

dave12367

recoverydust wrote: »

So with that settlement, maybe, you could negotiate to pay off your debts with a reduced full and final settlement?
Are you leaving the country to work?

no i am going back to Australia my home country and this settlement is all that i have for living.

i am just confused that if i have a completely seperate bank account then how will the creditors find out about that as this is a confidential information.
and how can a creditor freeze my separate account