Debt management plan and moving abroad

Al21ex_2

My partner and I are both on a debt management plan and are thinking of moving to Canada. It's not to avoid our debts but simply to be with family. However it does make us wander if our debts will follow us there?

We do have equity in our house that we will release if we were to sell it. The money would help us to buy a house over there. But if we were to pay all of debtors with that money we wouldn't have much left.

Must of our debts are bank loans and credit cards. Is there some sort of agreement between the UK and Canada? Could you at the limit keep the dmp active whilst living in Canada? Are the debts written off after 6 years or is it just the default that's being written off?

Thanks in advance for any answers

sourcrates

If you can avoid paying your creditors for a period of 6 years, then the Limitations act 1980 swings into being, as long as no CCJ`s have been granted against you, the debts will become statute barred.


Of course in order to get you to pay, your creditors need to know where you are, I`m not aware of any reciprocal agreements between the UK and Canada, but that's not to say one doesn't exist.


In the end its up to you what you do, but don't forget most banks are multi-national conglomerates, with branches everywhere !!!!

HappyMJ

sourcrates wrote: »

I`m not aware of any reciprocal agreements between the UK and Canada, but that's not to say one doesn't exist.

There is....

Canada-United Kingdom Civil and Commercial Judgments Convention Act

They can enforce the debt in Canada.

Al21ex_2

Hmm.. seems like they're is no running away from our debts. Both of our debts add up to around £55000 which is pretty much the equity we have on the house.

If we sell the house and arrange for a settlement we won't have any money left to move.

Is it possible to keep the dmp running being in Canada? Can you stop paying the dmp after 6 years or is am understanding it all wrong?

I am a Canadian and my partner is Polish so the chances of us coming back to the UK are very slim indeed. At the same time the last thing I want after starting all over again is that feeling of being chased all the time and have my credit rating affected in Canada.

blisteringblue

"You pays your money and you takes your chance"

Stop paying the DMP and I would sayit will take a couple of months for them to realise.

That is a large debt though, so as harsh as it may sound to me a fellow dmp'er you are making a run for it.

Personally I would sell the house get the equity and contact your creditors to make some Full & Final offers on the debts. I'm sure you will get them to settle for a lot less especially if you have been on a DMP for a while.

They you can simply start afresh in Canada without looking over your shoulder.

sourcrates

I doubt the DMP could be kept going, you would need to check though.
You misunderstood the limitations act, the debt would only be statute barred after a period of 6 years, without payment, as your currently laying the debts, that would not apply.

What do the debts consist of, loans, cards ?

When were they originally opened ?

Al21ex_2

Thanks for all your replies.

I wouldn't say I am making a run for it exactly...I have been in this debt mess for years now and I want the start again without having to live in fear and guilt.
I am considering 3 options:

1)making a run for it...🙁
2) Sell the house.Keep the money, move and get DMP going.
3) Sell the house. Settle the debts and rent in Canada

At the moment option 3 seems to be the most reasonable though.

I defaulted on my debts about 2-3years whilst my partner defaulted on hers about 4-5 years ago. Most of the debts are bank loans and credit cards.

blisteringblue

Old defaults like those will settle for a lot less, especially any sold on to DCAs