Debt and moving abroad

sourcrates

debtsywatsy said:

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

They will be less than helpful, they take a re-active approach, rather than a pro-active one, unpaid debt will just go to collections, then a debt collector, once you stop paying.

The chances of any of this debt surfacing again is remote if you have left the country.

Although reciprocal agreements do exist between countries, consumer credit debt is very rarely chased abroad, because there is just too much of it, and the cost of tracing an individual, then initiating legal proceedings in the country they reside in, is too complex and costly.

Creditors just sell the debts to debt buyers, who in turn can`t be bothered with such things, they want quick and easy results, they will just obtain a CCJ by default at your last known UK address, and it`ll just sit on file for 6 years then vanish.

CCJ`s must be enforced within 6 years, if they are not they become unenforceable.

You could just walk away, come back after 6 years to a clean credit file and no debt, that is the reality of the system, your debts may seem important to you, but in the bigger picture they are nothing, and won`t be chased for long, debt collectors tend to concentrate their efforts only on those who engage with them.

kempiejon

I think if you owe the money you should pay your debts. Yeah they're big faceless multimillion pound operations and have provisioned for it. But it's still stealing isn't it? Being able to get away with it doesn't make it OK. 

In a previous life I used to find people for finance company's debts. Now this was a long time ago so I have no idea of current systems but in those days gone away to a foreign country wasn't usually pursued. For a few £k outstanding - not counting charges once the customer was in for example Kazakhstan and the communication had gone cold it'd be written off.  If the OP is upping sticks, closing UK financial ties and stops paying the options for enforcing collection are slim. The OP can continue to make payments because that's the right thing to do. But a reduction in income making them unaffordable can't magic money. Perhaps the companies would take a view to a reduced payment schedule with frozen fees/interest? Better than taking the hit for them.

debtsywatsy

Hey all,

Just an update: 

I have paid off the amounts I would have earned before leaving from my savings and will just top up my savings with my salary over the next while as it comes in.

I’m planning to reach to each lender to explain the situation, send income and expenses information and request lower payments.

Does that make sense? Am I approaching this the wrong way and inadvertently making things more difficult?

I want to pay my debts back in full, I’ve never missed a payment or been late in my life and it’s really making me nervous. 

RAS

Going back to square one.

If you pay anything less than you contracted debt, you will get an adverse marker on your credit record.

If you stop paying entirely and wait for the debts to default over the next 6-18 months and then resume payments, your credit record will be fine in 6-7 years, whether you pay or not.

If you write to your creditors and offer reduced payments, your credit record will accrue Arrangement to Pay (AP) markers which stay on your credit record for 6 years after the debt is paid off. So it damages your credit record a lot longer.

Perverse but true.

debtsywatsy

That’s pretty crazy.

So, thinking logically, do I just let them know I can’t pay and provide a forwarding address and my telephone number?

Also, it seems that if a CCJ is issued (which they probably will be in my case) it seems to be still enforceable after 6 years, is that correct?

sourcrates

debtsywatsy said:

That’s pretty crazy.

So, thinking logically, do I just let them know I can’t pay and provide a forwarding address and my telephone number?

Also, it seems that if a CCJ is issued (which they probably will be in my case) it seems to be still enforceable after 6 years, is that correct?

No, section 24, limitation act, 1980 states:

"24Time limit for actions to enforce judgments.

(1)An action shall not be brought upon any judgment after the expiration of six years from the date on which the judgment became enforceable".

And as for giving them your contact information, why provide them the stick to beat you with?????

debtsywatsy

Well, if I don’t, won’t they call former employers, neighbours etc to find out where I’ve gone?

Grumpelstiltskin

debtsywatsy said:

Well, if I don’t, won’t they call former employers, neighbours etc to find out where I’ve gone?

In one word no, your debt is to small for them to even think about doing anything like that.

sourcrates

debtsywatsy said:

Well, if I don’t, won’t they call former employers, neighbours etc to find out where I’ve gone?

There is an act of parliament called the "data protection act" which might just prevent that from happening.

Honestly you give them far too much credit for both interest and persistence, the debt collection process is a blunt instrument, it consists of letters and phone calls to your registered address and phone number, if you don`t respond, either they will get tired and go hassle someone else, or they may obtain a CCJ by default, which will just stay on file for 6 years then disappear.

That will be the fullest extent of their involvement, millions of people default on credit agreements, do you honestly think debt collectors have the time, money and persistence to investigate every single instance of defaulting on payments?

No they do not, and it would be silly to suggest otherwise.

If you give them your contact details, you will suffer a barrage of collection letters/calls etc, nagging you for payment that will continue indefinitely.

Do you really want to go though that or just get a clean break?

You need to get wise to this.

debtsywatsy

My apologies for being silly, I guess because I never had something like this happen before and never intended for something like this to happen, I just feel very guilty.

Thank you for all the advice, everyone.