Living In USA with £70K of Unsecured UK Debt... HELP!!!

withoutapaddle

I am originally from the UK but moved to the USA in December 2005.

Between 1995 and 2005 I managed to rack up around £70K of unsecured debt. During this time I was a student and the debt includes student loans as well as many credit cards and unsecured loans.

I used to have a good job in the UK and great credit but left my job in late 2001 due to stress from severe social phobia. I tried to return to work on several occasions but found it very difficult and never managed to keep a job for more than a couple of months at a time.

Around this time I got married to an American and we lived in the UK for a while. I was essentially living on my remaining credit until the debts became unmanageable.

I ended up selling my flat and used some of the remaining money to clear some of my debts. I used some of the money to rent a house. However, I continued to remain out of work and the debts continued to stack up. My wife worked and I tried to make money working at home but we couldn't make enough and the debts became unmanageable again.

I did try and deal with things the best I could at the time. I applied for every benefit I could and also contacted several organizations to find out what I could do. Several recommended bankruptcy, but I really wanted to avoid as so many people do. I therefore tried as best I could to make arrangements with my creditors and actually got some debts suspended for a short time.

But it was like fighting a losing battle day after day. I got really tired of the phone calls and debt collectors coming around. We eventually moved in December 2004 and I didn't pass on my new address to my creditors.
I had managed to keep a car on HP, which my wife was using for work at the time, but I was getting behind with the payments. The car was in danger of being repossessed so I decided to sell the car and pay off the HP.

At this point everything seemed so hopeless that we took the remaining money from selling the car and pretty much sold everything we owned to buy two plane tickets to the USA. We weren’t really thinking clearly at the time, my wife missed her family in the USA and we both longed to escape the debt problem.

We had a pretty rough time to start with, living with my wife’s parents and moving on to stay with other family members when we had outstayed our welcome. We eventually managed to get our own place with some assistance in September 2006.

It's been a real struggle most of the time we’ve been over here. I applied to become a permanent resident and at one point it looked like I could be deported, but I am now a legal permanent resident after waiting for over a year.

I have started working from home and getting paid freelance work. My income has slowly started increasing and I feel that I could now make a living working at home. It has taken me a lot of time to build up the skills and confidence to do this.

The problem is that both my wife and me really want to move back to the UK. My parents are both getting on in years and I have recently found out that my dad has chronic kidney disease. It is upsetting because I haven’t seen my parents since 2005. I really want to be close to my parents and live in the UK but the overwhelming debt really worries me.

For the first time I am seriously considering filing for bankruptcy in the UK. I probably should have done this several years ago and I know I've made things worse by running away from the debts I had in the UK.

So what should I do? Can I file bankruptcy from over here or do I have to return to the UK?

I can't really afford to move back to the UK at present and I'm afraid to return to sort out the debts because this would mean leaving my wife to deal with things over here. If anything happened while I was in the UK it would leave my wife on her own to deal with things.

I've read that it's possible to file bankruptcy from overseas but I am worried how my previous actions will be perceived as I obviously acted irresponsibly by avoiding my creditors and by moving to the USA.

I've been out of touch with my creditors for around 3 years now and I read somewhere that unsecured loans expire after six years "from the last communication".

So should I try to wait it out another 3 years? I have no idea how bad my debts have become in the UK while I’ve been gone. When I left in 2005 I owed around £70K. I didn’t have any CCJ’s at that time but I have no idea if that is still the case.

I would love to see a copy of my credit report from the UK but have no idea how to get a copy. Since you have to supply a valid UK address to obtain a copy I have no idea how I can get one.

I know I've made a real mess of things but all I want is the chance to make a fresh start. It's been hard trying to make ends meet over here and that's been without trying to pay off any of my UK debts.

But I feel that given a fresh start in the UK, me and my wife could support ourselves without running up any more debts. I am not sure what I should do next, but I know I should deal with things as soon as possible.

tallyhoh

You know you should be dealing with your debts with some sort of repayment but from what you say I doubt if its possible without some sort of income.
There are people on here with fairly large debts that have sucessfully dealt with them & one or two will be along soon to post a reply.

It might be possible to keep your head down for another 3 years but could you cope with that?

withoutapaddle

I know I should be making an effort to repay the debt, but to be honest it's only in the past year or so that we've been able to stand on our own two feet as it were.

When we came over to the states we were very dependent on both my family in the UK and my wife's family over here to help us out.

I ran up most of this debt before I met my wife, but she is very supportive and we both want to sort out the situation. We would both prefer to live in the UK if possible, even if that would be hard work at first.

It's a possibility for me to stay over here for another 3 years, but what's really killing me is not seeing my parents. They have offered to buy me a ticket so I can visit them but I really wanted to try and pay for a visit myself since they don't have a lot of money.

I want to sort out in my own mind what I am going to do about the debts before I come over to visit my parents. If the answer is to file bankruptcy then would I be better off filing while I was over there, or waiting and filing from over here once I return?

The rules over unsecured debts expiring after six years "from the last communication" seem pretty vague to me. I would hate to wait it out for six years and then find the debts were still there waiting for me.

Whats also bothering me that debt collectors have sent letters and called at my parents house. I really hate to think of them being harassed over my debts especially given their age.

I was reading that debt collectors in the UK are getting even more powers and will be allowed to force entry into a property? I am just really worried about my parents and the effects my debts are having on them.

tonyhamm

There is no limitation of 6 years from communication for debt. Where did you hear that?
There is a limitation if there has been no claim made in the court by your creditor within 6 years.
But if you have large debts then they do not simply go away after a few years!
Your option would be bankruptcy, after you have divested all of your property to your creditors.

rog2

tonyhamm wrote: »

There is no limitation of 6 years from communication for debt. Where did you hear that?
There is a limitation if there has been no claim made in the court by your creditor within 6 years.
But if you have large debts then they do not simply go away after a few years!
Your option would be bankruptcy, after you have divested all of your property to your creditors.

These are 'unsecured debts' for which there is a six year limitation period. Under the terms of the Limitation Act, 1980, providing that a debtor has niether acknowledged the 'debt' in writing, nor made any payment towards the debt, for a continuous period of six years (the Scottish Limitation and Prescription Act gives a limitation period of five years in Scotland) then that 'debt' can no longer be pursued through the courts.
Of course this does not mean that the 'debt' will disappear, but, providing you tell the creditor, or dca, that you will not be making any further payments towards that 'debt' because it is 'statute barred' (the only reason you need give) then they can not pursue it through the courts and should cease all other attempts, such as 'appealing to your moral duty', to pursue the 'debt'.
For information about your liability for debts and the limitation act, have a look at the following link:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

It is, also, worth pointing out that, should any of your creditors take action, through the County Courts, any resultant CCJ can not be enforced outside of the UK.

Equally a 'Debt Collector', whether UK or USA based, would have no legal powers whatsoever to 'enforce UK debt' in the USA. They can only ask you if you would like to make any payment towards the 'debt'.

GeorgeUK

First thing it seems you need to do is find out what you owe before you can do anything else.

Not sure if they make your address known on the credit file, but someone else may be able to answer that.

https://www.econsumer.equifax.co.uk/consumer/uk/sitepage.ehtml?forward=gb_cs_cpo_howto#five

As Rog2 has said, unsecured debts will run for 6 years from last payment or last time you acknowledged the debt in writing. Debts on a property such as a mortgage can run i believe for about 12 years before becoming statute barred.

withoutapaddle

tonyhamm wrote: »

There is no limitation of 6 years from communication for debt. Where did you hear that?
There is a limitation if there has been no claim made in the court by your creditor within 6 years.
But if you have large debts then they do not simply go away after a few years!
Your option would be bankruptcy, after you have divested all of your property to your creditors.

I actually read it on the Independent's Website.

Here is the section that interested me...

As for being pursued for debts from the dim and distant past, the rules surrounding this are complex. For example, while unsecured debt, such as credit cards and personal loans, expires after six years, that timetable starts "from the last communication, not when the debt first occurred", points out Frances Walker of the Consumer Credit Counselling Service. At the end of the six years, unpaid debts do "drop off" your credit record, says Experian. But while you can't be taken to court for unpaid debts after this period, the collection agencies can keep asking you for the money.

GeorgeUK

That last sentence sums it up nicely.

After 6 years, the debt would still exist but you would be under no legal obligation to pay it. The courts would not hear a case that involved a debt that was statute barred and so the debt could not be enforced.

Not too sure what happens if a CCJ or similar has been issued though.

withoutapaddle

If a debt can't be enforced and will "drop off" your credit report isn't that pretty close to not having the debt? In theory you could build your credit back up and get a fresh start.

I wonder how actively debt collectors would be to pursue a debt that is [FONT=&quot]non-enforceable?

I would love to pay off the debts, but due to my present circumstances it's very unlikely. Even if I managed to pay something it would probably be gobbled up by greedy debt collector charges anyway.

I'm not ruling out [/FONT]bankruptcy yet, although I'm still confused about filing from overseas. Also, how can I check if I have any CCJ's without requesting a credit report?

tyllwyd

In the Insolvency Service website it says

"Can I make myself bankrupt in England if I live abroad?

Yes. If you are living in an EU member state, except Denmark, you must show to the Court that your centre of main interests is in the UK. If you live in another part of the World you can present a bankruptcy petition in England if:-

(a) you are personally present in England and Wales on the day you present your petition for bankruptcy to the Court, or

(b) if you have lived or carried on business in England and Wales in the previous three years.

The country in which you live may not recognise the bankruptcy proceedings and creditors may still be able to take action against you in the country you live in."

http://www.insolvency.gov.uk/freedomofinformation/technical/foreignissues.htm

rog2

withoutapaddle wrote: »

I wonder how actively debt collectors would be to pursue a debt that is [FONT=&quot]non-enforceable? [/FONT]

You would be surprised, wap, just how 'valuable' unenforceable debt really is. These 'debts' are 'sold' off, for a fraction of their original value, to the ever-increasing flock of 'vultures' that lurks in the darkest depths of the 'debt collection industry'.
These scavengers, whilst they know that the debt is legally unenforceable, play on the fact that 99+% of the general population are unaware of their rights - or, indeed, of where to ask for advice - and will simply pay up, in order to get them off of their backs. The heavy tactics and threats that these despicable miscreants adopt are purposely designed to detract a 'debtor' from even thinking that there may be other options available, and they are extremely unlikely to suggest that the 'alleged debtor' seeks advice - legal or otherwise.
It is, unfortunately, up to the 'alleged debtor' to tell the debt collector that the debt is unenforceable by law - even then, these thugs don't let go easily and will often appeal to the debtor's 'moral' obligations, whilst ignoring their own moral and legal obligations.
Since the returns can be extremely lucrative, and the risk of a 'debtor' being aware that the 'debt' is legally unenforceable is minimal, the answer to your question is very actively indeed.