live abroad but debts in England

sally · Joined: 04 Dec 2006 Posts: 3

Due to personal issues, I have moved to spain (where my parents live) to start a new life, but have 35k of debt still in England! eeek, i know!

Because it was rather sudden i didnt give my creditors my new address and have not paid anythin since i moved. I have now sorted out my post all to be redirected and they are threating Backruptcy.

Can i be made bankrupt even though i live in spain? I think i might just let them.....

Andrew

First, the usual healthwarning: Get specific advice from an appropriate professional who knows allthe facts of your case.

However, Yes –you can be made bankrupt in England. And, If you have property in Spain (in accordance with EU Regulations) the Trustee in Bankruptcy can make applications for that to be sold and the proceeds paid to your creditors.

Potentially you could be made Bankrupt in the Spanish court as this is now your main residence. We've no knowledge of insolvency in Spain, however - so do get your own advice.

Yoiu need to weigh up a number of factors, including:-

Sorry we can't be more specific - and hope this helps.

All the best,

Andrew

Sunny · Joined: 12 Dec 2006 Posts: 1

Hi,
I have a similar question regarding repayments from abroad.
I've decided to up-sticks and move to Australia for a year on a working visa, I qualified as a Doctor two years ago but am sick of the treadmill and debts following a 5- year degree. I have about £20,000 of Student Debt, a £20,000 Bank Loan and about £600 spread out over store cards and credit cards.

I would be working out there to fund my traveling - but what's the situation with the money I owe here? Ideally I would be able to freeze the interest or something and hold off on repayments until I get back (which I hope is the situation with the Student Loan) - is this likely in terms of my bank loan and store cards? If not would I be better consolidating my other three debts into something with low interest? or would this still be massive to come back to after a year of no repayments?

Andrew · Posted: Tue Dec 12, 2006 5:26 pm Post subject:

Going down-under won't see your debt's disappear I'm afraid. And, not having a regular, predictable income pretty much puts the mockers on an IVA - creditors just won't go for it.

Consolidating the high price credit you have is a sensible step, but that is going to make very little difference given that it only represents about 1.5% of your debt.

Remember also that your student loan will not go away - even if you became bankrupt it would still be there when you next earnt an income above the £15K threshold (I think that's the figure).

From the TV news last night, and the papers today, it seems you do have rather an attractive option which many others in your predicament would not have.

You're a doctor - go work in Australia, it seems to get you off the treadmill, drastically reduce your hours and might reduce your outgoings too. In those circumstances an IVA might even be possible - but more likely you'll be able to pay your debts as they fall due.

Of course, there may be more to your case than meets the eye: feel free to share more details or do talk to an appropriate advisor.

Best of luck,

Andrew

Loz · Joined: 05 Dec 2006 Posts: 4

hello,

i think you will be able to sort sumthin out with your student loan, i have.

Check out directgov abroad payments and directgov repayment information.

bondjamesbond · Joined: 12 Dec 2006 Posts: 1

hi all.

there seems a lot of us escaping from our debt abroad!!

Anyways, my story is : I left England and my debts behind nearly 2 years ago but its turned out unexpectedly i am going to have to come back! Crying or Very sad

My debt is secured and unsecured loans, credit cards, etc.

so, do you know what would happen when i return? will the people i owe somehow find out i am back and will have to pay them?

thanks

Andrew · Posted: Thu Dec 14, 2006 9:22 am Post subject:

If you come back you will, at some point almost certainly need access to UK financial products. At that time I suspect your creditors will soon be back on your tail. I think that you’ll find, if you’ve not been making payments, that not only will your debts have swollen, but that your creditors may well have taken action against you in your absence.This in turn, might make it difficult to gain access to any UK finance products that you need to live.

Having a secured loan is especially intriguing: that presumably means you have UK property against which the loan is secured: Has the lender taken no action against this?

We’d never advise anyone to try to walk away from their debts. If you can’t pay, there are solutions that can help – but the essence is always speed: the sooner you recognise your situation and take action the more options will be open to you.

You need to take advice from an adviser who knows the whole of your story – but I suspect you need to be prepared to stand up and be counted.

Regards

Andrew