Settling credit card debt

WordsworthsWords

Hi, I have £25,000 unsecured credit card debt over four cards and of this £19K has defaulted and these defaults will be two years old in November 2024.   My credit report is only showing 19K of this debts and they all date to a similar time.  I wonder why the other credit card (Virgin) isn't showing up?  None of the defaults state whether the debts are sold to a debt collection agency.   I left the UK over two years ago and a debt charity here wrote to the credit card companies with my financial details to say I couldn't afford to repay them.  The charity heard nothing back from these credit card companies.  I have since moved rented house again and lost touch with these companies.  However I have now come into a small amount of money unexpectedly and wonder if I can settle these debts for say a 20% figure to essentially clear my name!  I know my UK credit file is wrecked whatever I do.  Will they do a CCJ against me, even as an unsecured debt?  Please can someone with experience advise me?

fatbelly

Sounds like your file clears in Nov 2028.

Are you planning to return to the UK before then?

WordsworthsWords

Thanks for replying.   No plans to return to the UK.  However I would like to buy a house in my new country, so need to address UK debt

fatbelly

I-m surprised that UK debt is affecting your lending ability where you are.

If you were successful in obtaining settlement offers your markers would change from  default to partially settled default. That wouldn't make much difference. 20% is very low anyway.

Given the risk of reigniting action, even if your offers are made on a without prejudice basis, for me the plan is risk without much chance of benefit, tbh even if you were planning to return

See what others think

WordsworthsWords

Thanks for your thoughts, I really appreciate them.  Sounds like you're thinking it best to just leave these these debts and assume no action will be taken to collect them, as they are unsecured.  

RAS

Yes. After 6 years they fall off your credit record and become statute barred. Assuming you are in England or Wales. The debt still exists technically, but the creditor has no right to collect the money.

WordsworthsWords

I guess at base level I wonder whether if I manage now to afford to buy a house here whether the unsecured debt could then be charged against the house.  CCJ or whatever

RAS

Where are you planning to buy a house? When?

WordsworthsWords

In Republic of Ireland... maybe within the next year or so.

sourcrates

Posts similar to this pop up on here from time to time, asking the same questions you have done, will I be chased abroad, will bailiffs be knocking on my door, will they enforce CCJ`s against me in my new country????

And the answer is always pretty much a resounding no, none of that will happen, although the technical apparatus to do so does exist, in most cases, there is a steady lack of will to do so, as a result consumer credit debts are not normally chased across international borders.

First they would have to find you, wherever you were in the world, that takes time and money to trace you, then they would have to take legal action against you in the UK, and whilst enforcing a CCJ abroad is possible, it can be time consuming and expensive with no guarantee the debtor can pay.

You may get legal action taken in the UK, but that judgement will just sit on your UK file for 6 years, enforcement action is unlikely, and your UK credit file will not affect your Irish one.

The debts will be sold to some bottom feeder debt purchasing company, who will write to your last known address, they will continue with collection activity until they get bored and move on to their next target.

Personally I think offering them a settlement is just a waste of your time and money, debts will be sold, losses written off against tax, debt buyers only lose a small amount, they will likely sell them to someone else anyway, the game will continue, everyone is happy, I wouldn`t lose sleep over any of this, enjoy your new life in Ireland.

ManyWays

WordsworthsWords said:

I wonder why the other credit card (Virgin) isn't showing up?  

There are three credit reference agencies in England, have you checked reports from all three?