Debt and moving abroad

debtsywatsy

Hello,

I’m sorry if this is the wrong board but, I couldn’t see a better match.

I have a pretty unique and unfortunate circumstance and I’m just looking for advice to navigate what to do.

My debt is:

Loan 1: £9500~

Loan 2: £3400~

Loan 3: £6800~

CC1: £5600~
CC2: £6000~

Mobile: £260 PM (1 month left)

Savings: £27,000

Up to now, I have been earning £4000~ PM after tax. My cost of living has been around £1650 per month and loan repayments have been £747. The loans were taken out to cover private medical treatment. 

Very little cash is used so I’m regularly clearing my CCs and just using again for all daily expenses. Both are interest free for the next 8 months.

My Partner has to return to their home country due to a family situation and we really want to go together, separation isn’t an option for us however, I cannot work my job remotely. I have found a position in that country but my pay will be 55% lower than it is now. Our savings will be used to purchase a home. 

I have a real moral issue with the idea of both not being able to meet my obligations or worse, abandoning my debt. I want to repay what I can but how do I approach this with lenders? 

I’m really stuck in a pickle and would appreciate any advice.

MeteredOut

Do you ever plan to return to the UK, or is this a forever move? I'm sure you'll realise the debts will still likely exist (and will have accrued) if you do plan on returning.

Can you share which country you plan to move to? eg, is it one with a reciprocal agreement with the UK?

debtsywatsy

Honestly, we aren’t sure but at least for the next 5 years or so it’s unlikely. We are moving to Kazakhstan. 

MeteredOut

debtsywatsy said:

Honestly, we aren’t sure but at least for the next 5 years or so it’s unlikely. We are moving to Kazakhstan. 

Doesn't matter for how long. If a CCJ is issued, it'll be there when you get back.

You have the money to repay the majority of debts. When do you need to go? Do you have to go at the same time?

debtsywatsy

We have a three month window, they’re going soon. I’ll submit my notice which is the three months. In that time I can probably clear a further 6k off of the loans and meet the minimum on my CCs. 

I’m not sure if I’m totally wrong but, are payment holidays an option generally with loans? I assume it’s lender dependent? I’m just thinking outside the box for the potential to pick up remote work with this time frame too.

RAS

MeteredOut said:

debtsywatsy said:

Honestly, we aren’t sure but at least for the next 5 years or so it’s unlikely. We are moving to Kazakhstan. 

Doesn't matter for how long. If a CCJ is issued, it'll be there when you get back.

You have the money to repay the majority of debts. When do you need to go? Do you have to go at the same time?

A CCJ has to be enforced within 6 years. 

OP, have you checked the rules in your new country regarding ownership of local property by foreigners, what taxes they might have to pay etc during residence and on sales. In some parts of Europe, non-citizens may have to pay additional taxes.

Bluebell1000

Given your fairly low outgoings, especially if you ditch the expensive mobile, could you not just keep paying the loans and cc as normal when you're out of the country? 

debtsywatsy

As my Partner is a Kazakh citizen, there are no issues regarding property ownership and related taxes.

There's no issue with me continuing to pay while I’m in this role in the UK however, the role I found in Kazakhstan comes with a 55% pay cut. 

MeteredOut

RAS said:

MeteredOut said:

debtsywatsy said:

Honestly, we aren’t sure but at least for the next 5 years or so it’s unlikely. We are moving to Kazakhstan. 

Doesn't matter for how long. If a CCJ is issued, it'll be there when you get back.

You have the money to repay the majority of debts. When do you need to go? Do you have to go at the same time?

A CCJ has to be enforced within 6 years. 

Is this wrong, or Scotland only (though I suspect the OP would have said if in Scotland)?

"You may have heard that following a period of six years, debts become statute barred meaning that although they will remain, they cannot be legally enforced. However, what you may not realise is that regardless of where you are residing, a creditor can apply to get a County Court Judgment (CCJ) issued against you. It is important to be aware that CCJs can be enforced on your return to your country even if six years have passed. If you leave the country without giving creditors forwarding contact information, legal action will served at your last known address. If you do notify creditors of your new address, legal action can only be started in that country."

https://www.scotlanddebt.co.uk/articles/personal-debt/moving-abroad-to-escape-unpaid-debts-what-happens

RAS

English and Scottish law are different.

And as long as the OP organises mail forwarding, the creditors can use their existing address, or can provide a serviced address if they want.

debtsywatsy

Thanks everyone. Any recommendations on how I approach this with lenders? Not had an issue like this before.