UK Debt When Moving Abroad

The idea of moving abroad to escape debt seems to be more of a common practice these days. People with failed businesses or swamped in debt seem to think moving abroad will give them a fresh start, free from debt and allow them to build a new life.

It became obvious after reading some of the comments on various UK debt forums that there is divided opinions on this. Some people think running away from debt is too much of a risk, and believe the creditors will eventually catch up with the debtor, whilst others encourage the idea, stating that there is no way debtors will be found and seem to encourage people to move on and enjoy a new life free from the responsibilities of debt.

In the past this might have been a successful way to start a new life without the worry of unpaid debt. However, creditors and courts alike seem to have caught up with the idea over the last few years and have taken action to make it more difficult for people to escape the responsibility of repaying outstanding debt.

Creditors taking action

Some countries, such as Germany and Canada, have reciprocal agreements when it comes to tracing debtors and debt collection practices. There is not an awful lot of information regarding which countries have reciprocal agreements and which do not. Could it be that creditors do not want people to become too clever so have not made it common knowledge? However, a search around the World Wide Web might disclose a few more countries with these agreements.

A reciprocal agreement in the UK means a UK Court can enforce a CCJ (County Court Judgment) using the legal system of the other country. If there is no such agreement in place, a creditor can sell a debt to the relevant country where the debtor resides and debt recovery procedures will commence under the law of that land.

Tracing a debtor

The resources available to creditors nowadays when it comes to tracing a debtor are vast. Although the resources in other countries may be limited, there are still ways and means of finding people, especially once the creditor finds out which country the debtor has moved to. A creditor may have their own department in that country, or relations with other credit companies in that area.

Creditors can also try a tactic or two to locate someone's whereabouts. They may go to the last known address, talk to the neighbours, family friends or relatives who could unknowingly tell them of the person's whereabouts. Once they know which country the debtor is in, their job is made much easier.

Using an ATM card in another country shows us how easy it is to get information from a UK account abroad. If we can do this so simply, what other information is able to zip round the world almost instantaneously?

Having resources to trace a debtor or having agreements with other countries, or even the possibility of selling the debt to an agency in the appropriate country does not automatically mean that a creditor will be successful in tracing a debtor. In some cases, people do get away with it. It is however a risk for anyone considering moving abroad to avoid debt. A creditor has a period of 6 years from the last time a person acknowledged a debt to use the legal system to recover monies. However, if a creditor has taken legal action on an account, the debt can be legally recoverable indefinitely. This means that someone could start a new life abroad and work hard for the assets they accumulated, only to find a few years down the line that a creditor has traced them! This could mean everything they have worked for is put at risk and could be taken from them to repay their debt.

What are the Options?

Many people who move abroad who are struggling to keep up with their repayments may not be aware of the free financial help available. They do not even need to telephone the UK, as there is free advice and help available on the web, just a quick email can put someone's mind at rest and make them realise they are not alone.

There are companies such as FCL Debt Clinic, who can offer a free financial assessment and advice. FCL Debt Clinic can also refer clients to a Debt Management Company who charge no fees and can help negotiate affordable monthly repayments on their clients' behalf by setting up repayment plans with their creditors. Anyone with a UK bank account or the use of one for transferring money, with UK debts, can be helped. This way, the ever-present worry of whether a debt is still around is no longer there to haunt someone.

Nicola Bullimore has been working with people who have debt problems for a number of years. For more information regarding debt issues, please visit our Debt Questions website.

---

Debt Reduction, a Necessary Endeavour

Massive debt is something many Americans face. Debt reduction is... Read More

Save Money When Going Out

It seems as though whenever we go out for the... Read More

Deal with All Your Debts with Care!

Lots of people take a large ammount of loans and... Read More

Dealing with Thingitis

Debt is quickly becoming an epidemic in America. However, through... Read More

Benefits and Drawbacks of Bankruptcy

Outlined below are some of the benefits and drawbacks of... Read More

How to Deal with Bill Collectors

So you've screwed up. You're drowning in debt. Maybe the... Read More

Credit Card Debt Freedom is Possible

Credit card debt have you drowning financially? You're not alone.... Read More

Selecting A Credit Counselor; Asking The Right Questions.

When you find yourself thinking about using a credit counseling... Read More

Debt Handling Solutions

Sometimes debt can seem overwhelming. In those instances, or even... Read More

Credit Counseling or Bankruptcy: Which is Best for You?

People often get to a place where they simply can't... Read More

Mandatory Credit Counseling for Those Considering Bankruptcy

Most Americans are aware of the sweeping changes in U.S.... Read More

Should You Join a CCCS - Consumer Credit Counseling Service for Debt Relief and Financial Freedom?

Do You Need to Join a CCCS - Consumer Credit... Read More

Debt Elimination 2

The First Step To Debt EliminationRegardless of your personal and... Read More

4 Simple Ways to Solve Your Debt Burden

Getting Behind Getting behind on your debts owed can be... Read More

Life After Bankruptcy

Bankruptcy and Credit - What Happens After Your Debts Are... Read More

How to Get Money When You Are Broke

(Money You Don't Have to Pay Back) 1. One way... Read More

Bankruptcy: Which Chapter Do I File?

There is more than one kind of bankruptcy. You should... Read More

Bankruptcy Abuse

Bankruptcy is little more than a smack on the hand... Read More

Questions to Ask a Credit Counseling Service about Debt Relief

Debt relief is a topic on a lot of consumers'... Read More

Yes to Less Debt

Feeling stressed by the amount of debts you have? Three... Read More

Credit And Debt Relief--A One Stop Solution

Amy Wright, 34, was extatic when her realtor showed her... Read More

Credit Counseling ? Signs That You May Need Help

Credit counseling is a viable option for those who are... Read More

Is There A Way Out Of Your Debt Problems?

Do you have multiple debts? Do you have just one... Read More

Assess Your Financial Attitude and Eliminate Your Debt Forever

Want to know if your attitude towards your finances is... Read More

New Bankruptcy Law ? Five Essential Things to Know

Last April, Congress passed the Bankruptcy Abuse and Consumer Protection... Read More