RossCountyLoyal

Firstly, before I start the discussion, can I just say that I realise that this discussion in some shape or form has done the rounds several times. However, the threads seem to disintegrate into drivel. Secondly, I realise that a similar kind of thread was started yesterday, albeit in "The Barbie", and once again it has went off topic a bit. I think that this is a major issue for many people and felt it was more appropriate to begin a new discussion in the main forum. Sorry guys in the barbie, no offence !!!

Ok, let's go for it....

The issue under consideration is whether to move across, without the house being sold, without arrangements for tenants in to pay the rent, then send the keys to the bank. The current 'value" could perhaps pay off the mortgage, but only if someone bought it, so not as if loads of debt. We also have a loan and credit cards, which we would also probably ditch as well, just for the sake of it.

Now I want to add at this point, that I am not interested in seeing any of the crap in previous threads of this nature regarding the "moralily" of this. We have actually given the bank a fantastic proposition (which I cannot disclose on the thread), which is good for everyone. If the bank don't support the proposal, what da heck. If Greece can default (technically they have already) then why not me.

So the golden questions I have are, has

i) House left behind. I've seen many comments of people leaving their credit card debt behind. So what. Has anyone had the b___s to ditch the house and send the bank the keys ?? (after all they need to ensure the pipes don't freeze up !!)

ii) Legal ability to chase debts from UK to Australia. I believe I am right in assuming that there is no legal ability for UK debt to be chased in Australia. If anyone believes otherwise, please provide substance behind your assertion.

With regards the debt chasers, I realiset that they could be annoying, how annoying could they by ?

Now, by the time I have finished writing posting this, the guys on the barbie will be pissing their pants, so please have a good laugh. I hope that this thread brings a laugh, but it is also bloody serious !!!

Any useful comments, WITH SUBSTANCE are appreciated. Please leave your morals out of this thread. I don't care that bad debts cause an issue for the companies overall which eventually find their way to all the good people in the world. Blah blah blah.

goldchoccycoin

Things I would consider if it were me;

CCJs are likely. Currently not enforceable in Australia but somewhat worrying if ever I had to return to the UK.

Mortgages (as far as I know) are treated slightly differently to 'unsecured' debt. Therefore could there be risks with even visiting the UK (warrants at the airport?!) - probably not but might be worth phrasing your proposal on www.moneysavingexpert.com/forums to see what the bank would likely do.

Also, to effectively 'run away' you need to be sure you will love the place you're running to. I love it here but wouldn't risk cutting all ties with the UK as my family (including aging parents) still live there. Plenty of expats end up 'going home'.

The Martin Lewis website (above) is a great resource, maybe see what all your options are. Good luck.

Just to add - many people pay their loans/cards/other debts once they get to Australia - it's not difficult or expensive.

Also, if you are in debt in the UK it may be worth addressing why - otherwise you could easily end up in the same predicament here. Australia is expensive, if you know your 'likely' income it may be worth writing up a budget to see how much cash you'll have after the basics.

JAJ

If you want to make your UK debt go away, if it is more than you can ever expect to pay back, why not consider the options of bankruptcy or an individual voluntary arrangement with your creditors?

Or, pay the debt from Australia.

Whatever you decide, letting debt fester away is never a good idea. At best, it's equivalent to throwing away your British citizenship because even if they can't collect in Australia, it would be there to haunt you if you ever returned to Britain.

And if Australia and the United Kingdom have any kind of agreement over debt collection, or if Australian law allows foreign debt to be collected in Australia, then you can be served with a credit judgement later on.

Jen1977ni

Also, have you considered this.... a lot of people who move to Australia, do not settle well and long to go back to the UK. What if you end up being one of those people? Then you'll have burnt your bridges and will also no longer have a home to return to. On the other hand, would you not consider going 'interest only' and getting a tenant in? I did that, and so far, so good. Luckily I have made a life for myself in Oz and have no intentions of moving back, but I still have a 'decent reputation' financially in the UK and when I go back for a holiday in March I won't be worrying about having to watch my back! So much to consider...walking away from it all will surely be a very desperate, last minute measure no?

asprilla

couldn't agree more with our lass in toowoomba.

iamthecreaturefromuranus

Ok.. lets take this piece of crap first.. " Please leave your morals out of this thread. I don't care that bad debts cause an issue for the companies overall which eventually find their way to all the good people in the world. Blah blah blah.

You might not care if your bad debts end up costing me more money... funnily enough, plenty of people do. So if you're seriously expecting people not to comment on the morality of your decision.. tough shit.

Throw the keys back to the bank and they will sell the house for what they can get... and if that turns out to be 10's of thousands less than the outstanding mortgage, then they will make every attempt to recover that.

Do they have any legal powers to do that here in Australia... probably not. So the debt will probably be eventually sold on to an Australian based collecting agency... they have no more legal powers than the bank to force you to pay it. They may, have more ability than the bank, to make life uncomfortable for you here though.

Turban Explorer

There is a strong chance the bailiffs will target any relatives you have in the UK? I wouldn't be surprised if it jeopardised your chances of PR or Citizenship in Australia but I don't know for sure - it's probably not the sort of 'good character' thing a new country looks for in its immigrants!

AlliF

Concur with this.
A while back I wrote some bad cheques (stupidly, but not intentionally as I was expecting some money in my bank before they cleared - didn't eventuate). Anyways it was 2000 quid and meanwhile I went on holiday not knowing they were gonna bounce.
By the time I got back the bank had been onto my folks hassling them trying to locate me and had the police issue a warrant to arrest me on suspicion of fraud! They thought I had skipped the country!
Had a lot of quick-smart explaining to do to get it sorted out (had to prove that it wasn't actually my intention to defraud them of the cash, and pay it back), but if the bank will go to those lengths just over that amount I think they would surely be a heck of a lot more persistent over a house loan!

deb68

Get in touch with a letting agent let them do it all for you, how hard is that?
Why even consider the option of running and hiding, it's stupid and childish.
What you going to do the same this end when you can't pay the rent or the mortgage, mate they would hunt you like a dog and string you up for all to laugh at, do the decent thing stop acting like a pikey

slapphead_otool

1. you will have the credit rating of a dead rat.

2. global credit collection agencies are buying up bad debts in the Uk and chasing them all over the world:

http://www.consumeractiongroup.co.uk...d-in-Australia

deb68

Told ya nah na nah nah naaahh

Amazulu

Had a bit of a read of your link (not in too much depth though). It seems that some Aussie agancies have bought up UK debts and tried to illegially pass them off as Australian debt. FRom what I gathered this has not worked and they have been told to get lost.

My understanding is that unsecured UK debt can not be chased overseas (maybe in the EU though?) and anyone trying to get it is whistling in the wind. As this thread is about secured debt, then that could be a different story, but I am struggling to see how it could be enforcable in Australia?

slapphead_otool

This I think is the crux of the matter.

The issue is this. The debt was created in the Uk under UK laws, but if it is on sold to an overseas collection agency, can they work within their own rules and guidelines in the recovery process?

I suspect they can, and you may well find that this means they can be pretty disruptive - to the extent that you find it hard to get work or rent accommodation.

Turban Explorer

To the OP - don't think things can't go spectacularly wrong here in Oz.....There are a lot of Brits out of work with no recourse to any assistance, plenty who've taken jobs on 457 visas only to discover they become wage slaves as the salary agreed wasn't enough to offer a decent lifestyle - it is very expensive here. That's without just not liking the place and feeling homesick or a family member needing your help.

slapphead_otool

These laws were all fine pre internet globalisation. If you look in the Sandpit forums you will see that Middle Eastern banks sold debts to Indian factors, who chased the debts in the UK. They were working under India laws, and by phone and email into the UK. They were doing things that UK credit brokers couldn't do.

Yes - they cant repossess your kids, but they can call your boss, landlord, and anyone else they want to, and talk about your credit record. You cant stop them. They are in India.