Drowning in debt and leaving the country....help!

Chicca1

I'll try & keep this brief. I owe £37k made up as follows:

Natwest unsecured personal loan (£15k), Natwest overdraft (£4k), Natwest Credit Card (£9k) & Barclaycard (£9k). I have never missed a single payment on any cards EVER....my Natwest accounts I have had for just over 10 years now, Barclaycard, circa 2 years. Earlier this year I realized I was constantly having to "borrow from Paul to pay Peter"; it got stupidly out of control. So I stopped paying as I could no longer realistically afford to pay all of them.

I don't drink, don't smoke, don't live a lavish lifestyle by any means but I found that all of my salary was swallowed up by my overdraft (which is waaaaaaay more than what I actually earn) & that essentially I was living off my overdraft each month. At around the same time I got engaged. So now there is the additional cost of a wedding! I do not have ANY assets in this country (credit was given to me on a South African passport although I now have British citizenship). I own 2 properties (mortgaged to the max in SA) & really don't want to lose these either!

My partner who is French (& lives there) is aware of my debt. He is willing to help me with £10k towards clearing all of the debt before we get married. I plan on leaving the UK (to be married in July). After this date, I will no longer be returning to the UK (not at least for settlement purposes).

To date I have missed end January & end February payments on all the accounts. The letters/phone calls are starting to come in thick & fast. I have written to each of them in the last week explaining "I was having financial difficulties & would be grateful if they could freeze all interest & charges on the account as I am currently seeking financial advice & will revert in 28 days." The calls & letters have still not stopped. None of the accounts have been handed over to collection agencies as yet.

My concern is that if I offer them F&F settlement when I've only missed 2 payments, they may not be as flexible in accepting it. Do I ignore it totally as I'm leaving the country anyway (so my poor credit for the next 6 years essentially has no bearing) OR do I wait a little longer before offering F&F? Do I offer token payments of £1 in the interim? What do I do to stop the calls and letters in the meantime?

Any help & advice will be gratefully accepted!

So much for keeping it brief

Asiacat

If you are leaving the country permanently your creditors will find it extremely difficult to enforce payment.

As far as I know there is no reciprocal agreement between the UK and South Africa regarding debt collection so they cannot sell the debt to a South African debt collecting agency.

Your creditors will likely obtain a CCJ against you if you abscond without paying but this will only affect assets you have in England and Wales.

As I see it you have three options:-

1. Leave the UK and leave your debts behind. You may get away with it but you will have big problems when if and when you return. This option although open to you will mean that others will need to pick up the tab for your debts which may or may not bother you. I don't recommend this course of action.

2. Explain to your creditors that you are leaving the country and make them a f&f settlement offer. They may go for it knowing that it will be extremely difficult to get anything out of you when you are in SA.

3. Go bankrupt and your Uk assets will be divided up between your creditors and after 1 year you will be debt free.

Happytohelp88

Hi,

I work at a Solicitors Firm and work in Debt collection.

It sounds like you are struggling and panicking wish is usual.


It all depends on how much you want to settle the debts you have before you leave. Even if ur account goes to DCA then can only threaten you. When your account goes to Solicitors, even if then decide to litigate, if they know your are not in the UK poss wont litigate and issue a CCJ.

If you are sellign your property in the uk & moving aboard then t would be pointless to litigate as u have no assets. If you cont to own your property then may obtain a ccj & charging Order.

F&F are pointless untill it gets passed. The older the debt or the more its palced wiht other companies the higher the settlment.

You cannot stop intrest until its passed from the Creditors.

I would send letetrs back as Gone away or dont anser the cals if you are in the other mind set. As it all depends on how mcuh you owe and what assets you have. It wuld be pointless suing you if you had no assests, creditors wouldnt waste money if they were not going to rec anything back,

let me know if u need anything futher

Chicca1

Asiacat

Thank you for your response.

"1. Leave the UK and leave your debts behind. You may get away with it but you will have big problems when if and when you return. This option although open to you will mean that others will need to pick up the tab for your debts which may or may not bother you. I don't recommend this course of action.

2. Explain to your creditors that you are leaving the country and make them a f&f settlement offer. They may go for it knowing that it will be extremely difficult to get anything out of you when you are in SA.

3. Go bankrupt and your Uk assets will be divided up between your creditors and after 1 year you will be debt free."

Option number 1, it would bug my conscience (as if I was stealing from someone & I've never stolen in my life).

Option number 2, how do I prove to them that I intend leaving the country? Surely they won't just take my word at face value? I will have booked a one way airticket nearer the time. Will this suffice as evidence in case they assume I am calling their bluff?

Option number 3, I don't have any UK assets. I'm terrified of bankruptcy...the word alone scares me.

Do you have any further advice for me, please?

Thanks in advance.

Chicca1

Happytohelp88

Thank you for your kind response.

I don't have property here. What is a CCJ and Charging Order?

Are you suggesting that when the letters come in the letterbox, that I return to sender with a note "gone away"? Will they not try to trace me via my Firm? I am working until I leave the country.

I've also read about my wages being garnished? How long before they take steps to do this?

Again, thanks in advance for the advice.

darren_clarke

skip the country and see if they can find you

marisco_2

It will be clear that you have left the UK for good, if that is what you decide to do. Checks can be made to see if you have any income, bank accounts, if you pay council tax, have any insurance, what loans and credit you have in the UK.

Chicca1

Thanks Marisco.

Should I just advise them nearer the time that I'm leaving for good and offer a "F & F" settlement?

Chicca1

Darren

I like that idea but too scared to be constantly looking over my shoulder :-)