Debt when moving abroad

Hi snapshotsUK

Welcome to the forums. We need to know if you are moving back to US permanently or for a short time.

I have taken this assumption that you won't be returning back to England any more. In such situations, there are different scoring system and credit laws in different countries and you will need to acquire a different credit report in the United States. So, it won't be necessary from your side to file for bankruptcy. However, always consider bankruptcy as the very last step when no other options are working in your way. Please read this page for a better idea.

http://www.debtconsolidationcare.com/avoid-bankruptcy.html

Moreover, if you stay out of the country for more than 7 years, the reporting time or the statute of limitations for collecting the debt will legally expire. So, the creditors won't be able to trace you if you are not returning back to UK.

If, after some time, you decide to return back to UK, then you might have a judgment against you which was sent to you in your absence. However, if you wish to pay them staying outside UK, in order, not to get your contact details revealed, making payments through money orders will be the safest mode. Some banks have their network abroad and your information can be retrieved if you paid through check.

Conclusively, if you stay in the US, you need to acquire a separate credit report and the debts in UK can't chase you in US. Always consider bankruptcy to be the very last step when no other options are available in your way.

If somehow, you decide to return back to UK, there might be a possibility that you will have a judgment against you. And if you do not wish to pass your personal information to your lenders, avoid using bank accounts as much as possible in case of debts at abroad. Paying through money orders and keeping all the copies of your correspondence with return receipt requested will be beneficial in the long run.

Please let us know your feedback. Hope to hear from you soon about this.

Regards
Roxette

I won't be retuning to the UK to live. I would like to keep making payments towards the debt rather than just leave it behind. I have a UK bank account that will remain open. Because my debt is managed through a debt management plan and is paid in one lump sum to them direct in which they then distribute to my creditors I am not sure if they will accept a money order.

If for some reason the debt is left unpaid and there is a judgement made am I to assume that I do not return to the UK before the 7 years expire even if just visiting?

I also need to consider whether or to have my mail forwarded on to me in the States which might be a means on the credit companies to trace my whereabouts. Any advice there?

My debts here are all in what was my married name and not my maiden name which is what I will be going back to in the States but would imagine that I had to supply that information in original applications. Although my marriage was never filed in the States.

Thank you for all of your advice!



[quote=roxette]Hi snapshotsUK

Welcome to the forums. We need to know if you are moving back to US permanently or for a short time.

I have taken this assumption that you won't be returning back to England any more. In such situations, there are different scoring system and credit laws in different countries and you will need to acquire a different credit report in the United States. So, it won't be necessary from your side to file for bankruptcy. However, always consider bankruptcy as the very last step when no other options are working in your way. Please read this page for a better idea.

http://www.debtconsolidationcare.com/avoid-bankruptcy.html

Moreover, if you stay out of the country for more than 7 years, the reporting time or the statute of limitations for collecting the debt will legally expire. So, the creditors won't be able to trace you if you are not returning back to UK.

If, after some time, you decide to return back to UK, then you might have a judgment against you which was sent to you in your absence. However, if you wish to pay them staying outside UK, in order, not to get your contact details revealed, making payments through money orders will be the safest mode. Some banks have their network abroad and your information can be retrieved if you paid through check.

Conclusively, if you stay in the US, you need to acquire a separate credit report and the debts in UK can't chase you in US. Always consider bankruptcy to be the very last step when no other options are available in your way.

If somehow, you decide to return back to UK, there might be a possibility that you will have a judgment against you. And if you do not wish to pass your personal information to your lenders, avoid using bank accounts as much as possible in case of debts at abroad. Paying through money orders and keeping all the copies of your correspondence with return receipt requested will be beneficial in the long run.

Please let us know your feedback. Hope to hear from you soon about this.

Regards
Roxette[/quote]

Hi snapshotsUK

Welcome back.

Quote:

Thank you for your continued advice. Is it best to do the following:

After moving back to America, continue paying the credit counselling service in the UK (which is paid on to my creditors)?

Obviously I want to take responsibility for the debt I incurred while in the UK but I do not have any plans to return to live in the UK. If the debt goes unpaid it seems as though I could almost disappear and the only way they could track me is if they are able to trace my address/bank transfers from America. Is this my understanding? If that did happen (which is the step I would rather not take) if I ever stepped foot back into the country is it possible that I could be charged with something serious or only that if the lenders know that I am in the country they could try to pursue legal action?

I was just upset with the way I was treated by the credit counselling service here as I have been committed to paying my monthly payment for over a year now. Before I was able to explain what I wanted to do they rudely asked how I was planning to pay the debt when I was abroad and almost as if I didn't have a right to make choices that I see improving my situation as I do not want to remain in 'debt' my entire life? I was just asking for my payments to be reduced to the lowest amount that could be paid until I am working again and that is my goal to be doing so as soon as possible.

In the end they did help but it made me think about what might be the difficulty of dealing with them from abroad and how they would determine what I would be able to manage with the difference in currency rates etc.

Any further advise you can give would be most appreciated.

Hi snapshotsUK

Welcome back.

Quote:

Further to snapshotuk posting, i am in a similar position. My plans to return are family based, and I am unlikely to be able to do any but part- time work at least for the forseeable future. I am also past the first blush of youth, so I don't know if that will have an adverse affect or not, in the job world.

However, my query is, if filing for bankruptcy in uk, would that have an impact on ability to get a bank account in US, or would it have world-wide impact. I have no assets to dispose of...not even a car! But what I don't want is to have to start dealing with nasty collection agents and being hounded. By the way, I am managing my debt currently, but I know once the job goes, then that's it.

Any advice gratefully received.

Thanks

Hi rainyday girl

Welcome to the forums. I will not suggest you to file for bankruptcy as you might have noticed the ill-effects of filing it reading my earlier posts.

Answering to your question, if you file for bankruptcy in UK, it won't be reflected anywhere if you come to US. You will have to acquire a new credit report and your past credit rating faced in the previous country will not get spotted.

I appreciate that you are trying your best to clear off your debts. Hard work is the key to success and your efforts will not get wasted. It may happen that you will get a very nice job on one fine day for which you least expected. At that time, you won't have to think much as you will be able to clear your debt rapidly.

I suggest you to keep a check on your finance. Try to save as much money as possible by cutting off any wasteful expenses. You can read this page for some helpful tips on how to save money.

http://www.debtconsolidationcare.com/forums/about2447.html

Please let me know if I can assist you further in your queries relating to debt.

Regards
Roxette

Hi Roxette

Thanks for the welcome and advice.

I appreciate that bankruptcy is a huge step, and one only to be taken as a last resort. However, as I will effectively be without a job once I leave here, and will only be able to do part-time once in US (as family reasons are part of this equasion), it does seem to be a realistic, if unpalatable option. I have always tried to do the right thing, and I'm sure my creditors will be mystified, as I always have paid my debts.

I am most unlikely to ever return to live in the UK, given my time in life as well as other factors, so the finality here is not something that I would be concerned about.

I will continue to monitor the boards, and thank you for your advice.

rainyday girl

Hi rainyday girl

Do let us know if you face any problem in between.

We will appreciate your regular postings and suggestions in the forums.

Roxette

I have an outstanding debt in UK and I was paying it off while residing in Canada. I paid for a long time but the debt did not decrease at all - it is about 1100 pounds. Then I ran into some financial and emotional problems and stopped paying since I just didn't see the point of it. I tried to get the credit company to lower the amount but they did not budge and I had no alternative but to stop the payments. The credit company has my old address in Canada. What can they do in order to collect the funds - What rights do they have in another country.

Good Morning,

I moved to UK from Canada in December 2006 (I have dual nationality). I left debts in Canada to the tune of ????10,000. I kept up with the payments as best I could. I recently contacted my banks in Canada to look into the possibility of lowering my minimum payments or freezing interest - anything to be able to honour my financial commitment.

Upon calling Canada yesterday, I was informed my accounts have been handed to a collection agency and that, unless the funds are paid to Canada in 2 days time, my case will be taken to court!

I have not received a single piece of correspondence to inform me what was happening. (Clearly I knew I had missed a few payments, but had no idea things had come to this).

The banks in question both had my new address in UK, that is where they mail my statements and bills to. Why then, would they not give the collection agency my correct address in UK?

What recourse do I have? I truly had no idea any of this was happening.

I'm told that, unless the funds are paid in 2 days, which is impossible, court papers will be filed and I will be liable for the full amount plus $4,000 legal fees and I will be charged 29.9% interest which will keep accumulating! I'm also told this judgement will be applied to my SIN card so if I ever work in Canada again, it will be sitting there waiting, having piled up years of interest and that my wages will be garnished and any money put into my account can be seized.

Main questions are:
1- What rights do I have given I have not received a single piece of correspondence on this? Nothing sent to the address banks have for me.

2- How can I pay my other bills in Canada if any money put into my account there will be seized by the court?

3- What action can they take against me if I remain living in Canada?

4- If I return to Canada just for a holiday, would I get in trouble?

5- What steps can I take given they did not make reasonable effort to contact me?

Your advice is much appreciated and greatly needed.