Can't pay back loan. What happens?

bris

Not as easy as just leaving it behind any more, and as it's to another EU country then it wasn't a well thought out plan.
https://www.buddyloans.com/blog/debts-in-other-countries-and-going-bankrupt-from-abroad/

dealer_wins

adindas wrote: »

Do not you know that most of benefit cheaters here in the UK are British born ???
Look at here for instance
http://www.dailymail.co.uk/news/article-2736546/Named-shamed-Five-Britain-s-biggest-benefits-cheats-stole-4-5m-taxpayer.html

So Brexit will hardly ever solve the problem. The only way is guaranteed to work is to scrap the benefit system. You do not work, you will need to beg or you will be hungry ...

How many benefit cheaters are in Singapore, Hong Kong, Malaysia, India, China ??

Divide the total budget for ALL benefits up so that every genuine registered citizen gets exactly the same amount weekly, whether you are working, a millionaire or unemployed/disabled. (Parents get an extra identical weekly amount for upto 2 children)

No cheating, so no need for checkers/investigators. Easy to administer so would save millions is bureaucracy. A great incentive for everyone to work as we all get the same in benefits and working will increase your income.

Lazarus_Blackstar

simpson_77

dealer_wins wrote: »

Divide the total budget for ALL benefits up so that every genuine registered citizen gets exactly the same amount weekly, whether you are working, a millionaire or unemployed/disabled. (Parents get an extra identical weekly amount for upto 2 children)

No cheating, so no need for checkers/investigators. Easy to administer so would save millions is bureaucracy. A great incentive for everyone to work as we all get the same in benefits and working will increase your income.

This is by far the fairest way for a welfare system. It'll hopefully come into mainstream UK politics in my lifetime! Just need to deciede the ammount :beer:

Voyager2002

dealer_wins wrote: »

Divide the total budget for ALL benefits up so that every genuine registered citizen gets exactly the same amount weekly, whether you are working, a millionaire or unemployed/disabled. (Parents get an extra identical weekly amount for upto 2 children)

No cheating, so no need for checkers/investigators. Easy to administer so would save millions is bureaucracy. A great incentive for everyone to work as we all get the same in benefits and working will increase your income.

So would the share for each person be enough to support a disabled person unable to work? If not, would you accept that such a person would be left to starve to death or at least suffer exclusion from ordinary life since they could not use transport? If so, would you be willing to pay the high taxes needed to meet the enormous cost?

Surely there should be some special support for people who have exceptional needs that are different from those of the rest of the community?

rebecca1982

After all the circlejerking and the like, it's time for the correct answer!

If you're looking at moving to Germany for the long haul, it's not likely at all you'll ever be traced. Forget what others (who don't have a clue what they're on about) talking about Interpol and the like.

At the end of the day, it's a civil matter.

What will happen when you don't pay your debt is this:

1. You'll get letters / calls from creditor asking for you to pay. You credit score will suffer at this point due to "missed payments" showing on your file. It's important to note that this file is unique to the UK, you'll actually build a whole new credit score in Germany using their system.

2. Eventually, your creditor will give up and pass the details to a debt collection agency. At this point they will register a "default" on your credit file. This pretty much ends the ability to obtain credit for 6 years from the date of default, after which it will fall off your credit file automatically. This has quite serious implications if you're still living in the UK, plan on getting a basic bank account and learning to live a life "outside the system".

3. Debt collectors are nefarious beasts. They will call you endlessly, send threatening demands and send agents around to attempt to collect you. If you're listed as "Gone Away", they will monitor your credit record periodically and things like the electoral register. Once they get a "data match" you can expect letters, phone calls and agents at your new address. It's actually quite hard evading DCA agents and a "peaceful" life involves either paying up, or learning the system so you can stay off their radar. Of course, moving to Germany puts you entirely off the radar, no more UK bank accounts, no more electoral register - you'll be safe!

If you stay in the UK, you're about to learn why indebted people wait ages to update their bank account addresses!!! It's one of the main ways DCA's were able to chase me as eventually, the bank realizes you're not at your old address and will want new details or shut your account down due to "no fixed abode". I often found that Barclays (I had a Barclays basic account) realized after 6 months.

Visit your branch regularly!!! The cashier will warn you as it comes up on they're screen.

4. Eventually, the DCA will want to ensure you're "locked" out of the mainstream financial system, it's the main method of control they have over you as once the 6 years have passed and nothing happens, you'll be free. This means that if you ever want a mortgage, loan or to buy a car, you'll need to deal with the DCA. The standard way of doing this is by registering a CCJ just as the 6 years default is about to fall off the system. This "resets" the statute of limitations and gives the DCA another 6 years to chase payment from you and effectively "punish" you for non payment.

Of course, there are way and means around this. I've been there myself and thankfully, after learning how the system works I'm now 8 years later with a perfect credit history. (I've learned my lesson too)

If the 8 years timeframe scares you, you better be! That 8 years only came about because I learned the system and successfully fought off separate CCJ requests from Capquest and Lowells respectively. If I hadn't been as switched on it could easily be 12 years or even more.

It's a serious business this being in debt, hence why people kill themselves over it! It's a life wrecker!

It's worth mentioning, that having extremely poor / defaulted / CCJ credit really does impact all aspects of your life. You'll be stuck on PAYGO phones, won't have any access to credit at all which means genuinely useful purchases such as a motor car or things you might need for work can't happen.

You'll also have to operate a "basic bank account" which are beyond hopeless. Forget internet banking and in some cases forget actually having a debit card. This means you cannot pay for things electronically and believe me, being pushed out of the "electronic" system and relying on cash is a serious social / living issue.

Even things you wouldn't associate with credit, such as TV / Broadband, renting a home or paying your energy / water / gas bills are highly twinned with credit. Expect to be unable to rent a flat from a mainstream letting agency and possibly end up with a coin slot system for your gas / leccy.

Like I said, it impacts everything!

Services are becoming increasingly electronically run and cash is dying out, so this is almost certainly going to become worse.

---

TL'DR

If you're moving to Germany full time and plan to live there forever, don't bother paying. They can't trace you down and any credit report / legal issues are civil ones that will never trace you to Germany.

If you plan of coming back to the UK in the next 10 years, it's likely you'll return to a complete mess which will impact you for the rest of your life.

What I hope you take from this, is that not paying back your debt can have really serious consequences. Forget all the moral stuff the guys above are going on about, take it from someone who's been chased by everyone from Lowells to Capquest and everything in between - life becomes very, very hard once the system closes in on you!

Of course, moving to Germany does away with all this but don't take the decision lightly. You sound quite young by the way you write, that's cool we've all been there (Me more than most!!!) but you have to understand that lack of access to credit really messes everything up - relationships, work life, social life and even just surviving!

This is a pretty serious decision to make and has the potential to impact you (If you do return home) for the next decade or more.

adindas

Voyager2002 wrote: »

So would the share for each person be enough to support a disabled person unable to work? If not, would you accept that such a person would be left to starve to death or at least suffer exclusion from ordinary life since they could not use transport? If so, would you be willing to pay the high taxes needed to meet the enormous cost?

Surely there should be some special support for people who have exceptional needs that are different from those of the rest of the community?

Have you ever heard people including the disabled people starved to death in Singapore, Hong Kong, Taiwan, Malaysia, India, China ??

What we sometimes hear in this country is that people on benefit are traveling all around the world while claiming benefit, while sublet their council house paid by the taxpayers .....

Voyager2002

adindas wrote: »

Have you ever heard people including the disabled people starved to death in Singapore, Hong Kong, Malaysia, India, China ??

What we sometimes hear in this country is that people on benefit are traveling all around the world while claiming benefit, while renting their council house paid by the taxpayers .....

Yes: I have worked in several of these countries and have first-hand knowledge of cases where people have starved to death. Added to which, the extended family is far stronger so that those with an income feel obliged to support their disabled / unemployed relatives in a way that does not happen here.

Voyager2002

rebecca1982 wrote: »

After all the circlejerking and the like, it's time for the correct answer!

If you're looking at moving to Germany for the long haul, it's not likely at all you'll ever be traced. Forget what others (who don't have a clue what they're on about) talking about Interpol and the like.

At the end of the day, it's a civil matter.

The remainder of your long post is accurate, but this first part is not. In fact it is relatively easy for debt collectors to trace people across the EEA; obtain judgements against them in the local courts; and generally operate as if they were still in the UK.

adindas

Voyager2002 wrote: »

Yes: I have worked in several of these countries and have first-hand knowledge of cases where people have starved to death. Added to which, the extended family is far stronger so that those with an income feel obliged to support their disabled / unemployed relatives in a way that does not happen here.

Any link ???
What sometimes happen is that people die due to different causes e.g political issue, mental illness, drug addicted, alcoholic, accident ...

If people do not get support for family, they should beg ....
If people on the street are hungry and ask for food (not asking money to buy drug, alcohol) many people will be willing to help