Iva or Dmp

Shookt38

RAS said:

Community banking aka credit unions are managed in the same way as main stream creditors. They can be much quicker to take legal action because they don't have the same protection as other creditors. 

So you need to engage with them personally, much more promptly. If you can speak to them face to face, great. If not start by writing and asking them who to contact.

They may accept a proportional payment  But don't offer something that you may not be able to fulfil, and maybe advise that when possible, you'd like to add some extra rather than upping your regular payment.

Hello again, 

Ah I see.. but we are leaving soon. So do i need to contact them now? Am getting nervous at that. 

RAS

Ultimately, you need to decide if you are returning to live in the UK in the next 7 years or so?

If not, you could just leave and ignore debts, and your credit record should be OK by then, even if you come back for visits. 

If you think you'll return in that time frame, then you might want to do something about your debts. The community bank one is most likely go for a CCJ. The rest will just get sold on multiple times. 

Deal with them when you come back, if they emerge from the woodwork. 

Shookt38

RAS said:

Ultimately, you need to decide if you are returning to live in the UK in the next 7 years or so?

If not, you could just leave and ignore debts, and your credit record should be OK by then, even if you come back for visits. 

If you think you'll return in that time frame, then you might want to do something about your debts. The community bank one is most likely go for a CCJ. The rest will just get sold on multiple times. 

Deal with them when you come back, if they emerge from the woodwork. 

Thanks for your response. 

I was hoping to redirect my post or put it in a locker here in royal mail. But im not sure if it will be any good at that. 

Can you also please advise, once everything is defaulted, and if i decided to contact my creditors, do i still have to pay the full amount of debt or certain amount only? I have just read someone saying here, they only paid a percentage of their debt and paid it full over time using dmp. 

Apologies again. Just reviewing and thinking hard .

Shookt38

RAS said:

Since you are going to be living in the ME it is vital that you do not get into debt there. In some countries an allegation of debt (even if you don't think it exists) can result in you being imprisoned, based on media stories. There's enough FO statements about "being in contact with  UK national" who hasn't had a consular visit and may have signed an untranslated statement to mean that you need a good emergency fund before you go.

You need a very very carefully organised budget to cover all your living costs. And to avoid any taking out credit.

The reason people here recommend you stop paying in the UK are twofold:

1. We've seen enough people who rushed into DMPs and then got into a mess when an emergency or two happened to advise that you need a money behind you before you start. Reputedly Stepchange allows £30 pm towards an emergency fund.

2. If you start paying your creditors immediately, you will get AP markers, which are removed 6 years after the debt is paid off.
If you stop paying until the debt is defaulted and registered, the default is removed from your account in 6 years, even if you still owe money.

That could be the difference between coming back to the UK to a clear credit record and finding you can't even get a phone account for the next few years.

Can you explain further what you mean by allegation of debt and FO? Sorry im just trying ti return to the previous comments to see if im doing everything right. 🙏🏻

RAS

I assume you've now joined a number of expat forums for the country in which you will be living? You've not shared which so my comment was very general. 

Some countries in the Middle East take a very dim view of unpaid debt. This means some foreigners have found themselves in court, unable to leave the country or even in prison because it has been alleged that they owe money. Often the complainant is someone local with whom they've had a business deal gone bad, but it could be a regular debt. The only way to get out is to pay the debt, which isn't easy if you've been stopped working. Often they aren't allowed to contact the Foreign Office/embassy before they are taken to court.

People who currently live in the country you are going to work in can advise if this is an issue there or not.

By the way, they aren't the only ones. Not sure how it works in the electronic era but in France it was illegal to write an post-dated cheque. Which could make it difficult to pay your rent on time if you were on holiday when your salary came in. Most LLs preferred to ignore the law, but it was technically a risk.

RAS

Shookt38 said:

I was hoping to redirect my post or put it in a locker here in royal mail. But im not sure if it will be any good at that. 

Can you also please advise, once everything is defaulted, and if i decided to contact my creditors, do i still have to pay the full amount of debt or certain amount only? I have just read someone saying here, they only paid a percentage of their debt and paid it full over time using dmp. 

Apologies again. Just reviewing and thinking hard .

I'm hoping you've stopped paying most debts are have been saving assiduously so you've an emergency fund when you emigrate?

 You have time to set up some sort of mail manager in the UK, again ex-pat communities will know where to look. Then get a mail redirect to them organised for the first year and renew. Beyond that it gets more difficult.

Another thing would be to set up a new email account that can be easily accessed in the country you are moving to and editing the contact details for all your creditors before you go. Read once a week or fortnight but do read these forums very carefully before you go. The fact that the word default is in a sentence does not mean the creditor has issued a default.

So track your credit records carefully a couple of times each month.

In the UK the debt business runs very slowly as a rule, unless you owe Amex or a credit union. It'll take 6-18 months for a default to be issued. Most creditors will then sell or assign the debt sometime over the next months. And the new creditor will write giving a reference number and their account number.

The basic you need to understand is:

If you pay nothing nor make written contact with the creditor, most debt becomes statute barred after 6 years, from the date of default or last acknowledgement, unless court action is taken.

A very small percentage of debts are taken to court within 6 years. In order to do this creditors have to write to the last known address. That's your cue to make some sort of payment deal with that creditor, as low as possible. But generally when they realise you aren't in the UK, they won't bother.

With all debts not being paid or paid less than the minimum, creditors will make discounted offers at intervals. The longer the low payment or non-payment and the more times the debt has been sold, the lower the amount required to clear the debt, as a full or partial settlement. Unless your debt is bought by PRA, you should get a good discount.

If debts are still on your credit record, or even if they disappeared when you return, the best response, at present is to end a prove it or CCA letter. No CCA, no right to collect. The more time the debt has been sold, the less likely it is that the required paperwork exists. But do check the law when you come back.

And be aware that if you receive a Letter before Action for a statute barred debt, you need to defend the case, or the CCJ is issued by default.

Shookt38

RAS said:

Shookt38 said:

I was hoping to redirect my post or put it in a locker here in royal mail. But im not sure if it will be any good at that. 

Can you also please advise, once everything is defaulted, and if i decided to contact my creditors, do i still have to pay the full amount of debt or certain amount only? I have just read someone saying here, they only paid a percentage of their debt and paid it full over time using dmp. 

Apologies again. Just reviewing and thinking hard .

I'm hoping you've stopped paying most debts are have been saving assiduously so you've an emergency fund when you emigrate?

 You have time to set up some sort of mail manager in the UK, again ex-pat communities will know where to look. Then get a mail redirect to them organised for the first year and renew. Beyond that it gets more difficult.

Another thing would be to set up a new email account that can be easily accessed in the country you are moving to and editing the contact details for all your creditors before you go. Read once a week or fortnight but do read these forums very carefully before you go. The fact that the word default is in a sentence does not mean the creditor has issued a default.

So track your credit records carefully a couple of times each month.

In the UK the debt business runs very slowly as a rule, unless you owe Amex or a credit union. It'll take 6-18 months for a default to be issued. Most creditors will then sell or assign the debt sometime over the next months. And the new creditor will write giving a reference number and their account number.

The basic you need to understand is:

If you pay nothing nor make written contact with the creditor, most debt becomes statute barred after 6 years, from the date of default or last acknowledgement, unless court action is taken.

A very small percentage of debts are taken to court within 6 years. In order to do this creditors have to write to the last known address. That's your cue to make some sort of payment deal with that creditor, as low as possible. But generally when they realise you aren't in the UK, they won't bother.

With all debts not being paid or paid less than the minimum, creditors will make discounted offers at intervals. The longer the low payment or non-payment and the more times the debt has been sold, the lower the amount required to clear the debt, as a full or partial settlement. Unless your debt is bought by PRA, you should get a good discount.

If debts are still on your credit record, or even if they disappeared when you return, the best response, at present is to end a prove it or CCA letter. No CCA, no right to collect. The more time the debt has been sold, the less likely it is that the required paperwork exists. But do check the law when you come back.

And be aware that if you receive a Letter before Action for a statute barred debt, you need to defend the case, or the CCJ is issued by default.

Hi, 

As I am reading through, I am just having more doubts about just waiting for everything to be defaulted and just setting up a dmp. But as advised, wait for everything to be defaulted. Which i am doing right now and only paying essential bills and the credit union.

When you said that if i receive a letter before action, i need to defend my case, do you mean I need to reply to the letter or CCj will be issued? But what if i am not in the country anymore?:( 

Is the new email for me to use for the creditors ti contact as well? 

I have so many questions and gets really hard to think nowadays.:( 

apologies again for the questions. 

RAS

Shookt38 said:

RAS said:

I'm hoping you've stopped paying most debts are have been saving assiduously so you've an emergency fund when you emigrate?

 You have time to set up some sort of mail manager in the UK, again ex-pat communities will know where to look. Then get a mail redirect to them organised for the first year and renew. Beyond that it gets more difficult.

Another thing would be to set up a new email account that can be easily accessed in the country you are moving to and editing the contact details for all your creditors before you go. Read once a week or fortnight but do read these forums very carefully before you go. The fact that the word default is in a sentence does not mean the creditor has issued a default.

So track your credit records carefully a couple of times each month.

In the UK the debt business runs very slowly as a rule, unless you owe Amex or a credit union. It'll take 6-18 months for a default to be issued. Most creditors will then sell or assign the debt sometime over the next months. And the new creditor will write giving a reference number and their account number.

The basic you need to understand is:

If you pay nothing nor make written contact with the creditor, most debt becomes statute barred after 6 years, from the date of default or last acknowledgement, unless court action is taken.

A very small percentage of debts are taken to court within 6 years. In order to do this creditors have to write to the last known address. That's your cue to make some sort of payment deal with that creditor, as low as possible. But generally when they realise you aren't in the UK, they won't bother.

With all debts not being paid or paid less than the minimum, creditors will make discounted offers at intervals. The longer the low payment or non-payment and the more times the debt has been sold, the lower the amount required to clear the debt, as a full or partial settlement. Unless your debt is bought by PRA, you should get a good discount.

If debts are still on your credit record, or even if they disappeared when you return, the best response, at present is to end a prove it or CCA letter. No CCA, no right to collect. The more time the debt has been sold, the less likely it is that the required paperwork exists. But do check the law when you come back.

And be aware that if you receive a Letter before Action for a statute barred debt, you need to defend the case, or the CCJ is issued by default.

Hi, 

As I am reading through, I am just having more doubts about just waiting for everything to be defaulted and just setting up a dmp. But as advised, wait for everything to be defaulted. Which i am doing right now and only paying essential bills and the credit union.

When you said that if i receive a letter before action, i need to defend my case, do you mean I need to reply to the letter or CCj will be issued? But what if i am not in the country anymore?:( 

Is the new email for me to use for the creditors ti contact as well? 

I have so many questions and gets really hard to think nowadays.:( 

apologies again for the questions. 

Yes, add the new email address to your contact details and only use for creditors. 

As explained, court action is unusual, but you need to acknowledge the claim within 30 days. The creditor won't necessarily actually take the matter to court.

Court action costs the creditor money up front, so they only take action in limited circumstances. If they know you are not in the UK they'll know they can't enforce action so may not bother.

I'd suggest you speak to National Debtline or Stepchange or read their websites.

Nothing can happen until the debts are defaulted anyway, and as explained court action is uncommon. So you have time to think through your strategy before there is a risk of court action.

Do you want to set up small monthly payments to defaulted debts which will probably stem legal action but could leave the debt owing long after it is removed from your credit record? Then save for discounted settlement down the line?

Or do you want to stop paying altogether and find a way to get someone to check your mail regularly so you can make offers only to those who want to take legal action? Or even have enough saved so you can pay off the debt in full within a month, if one is granted, which removes the CCJ from your credit record. Whilst the rest of your debt becomes statute barred?

sourcrates

If he`s not in the country, why bother acknowledging an LBA?

Its utterly pointless if they will be living abroad, the OP has been advised numerous times on his situation with regard to possible creditor actions and what his options are.