Carolina Tiger

http://www.insolvency.gov.uk/faq/faq.htm#18

I would say that this would mean that I can't file for bankruptcy in the UK and even if I could any assets I have in teh US could be taken into consideration because of the "UNCITRAL Model Law" that the USA has adopted for insolvency.

Carolina Tiger

Part of the HSBC loan was an attempt to consolidate all our UK debt in one convenient payment including credit cards and part of a car loan as well as the graduate study loan. But it's a bloody nightmare.

Michael

It is not that important that you can't currently file for bankruptcy but you have the ability to file in the future and that the loan is dischargeable in bankruptcy.

Living in the US also gives you leverage since it is very difficult for foreign companies to file lawsuits in US courts for debts. That is because they have a problem determining which court has jurisdiction (usually jurisdiction in the US is the court where you were living when the loan was taken out).

So if you quit making the payments, what can they do except possibly sell the loan at a very low price to a US collection agency so they can harass you or negotiate the payment? Other than that, there is very little that they can do.

Carolina Tiger

Yeah maybe but I don't like the idea of the harrassment.

Michael

There is always a risk but they may not even find a US collection agency that will take the loan for more then 1 cent on the dollar. The risk of them not collecting is very high. If they call, they will say they will be sending the sheriff to put you in jail and other things but it means nothing. If they call too often or unlwafully threaten you, there are laws that protect the consumer from harassment where you can send them a letter to cease and desist.

Different states have different statute of limitation on debts once you quit paying the debt. After that they can no longer use the courts to assist in collecting the debt but can still harass you. I don't know how that would be determined in your case since you didn't take out the loan in the US.

http://www.cardreport.com/laws/statu...mitations.html

Carolina Tiger

It all seems a bit risky. I would hate to be getting all the hassle as I'd be at work all day and it would be my wife who would be getting all the grief about it. Plus you hear so many unsavoury stories about those companies and their methods. Not sure I want to get to that stage.

Michael

There really isn't any other way (except bankruptcy) to get rid of a debt. If I was in a bad financial straight, that is the way I would try. There are a lot of horror stories but if you tell them that you are recording the call and will possiblly file charges against them, they will likely not threaten you and probably will quit making the calls.

You may possibly get a hit against your US credit score if a collection agency picks up the debt. However, no one escapes completely without consequences when not paying a debt.

You'll have to decide what is important to you. Do you want to take the risk and continue paying the debt and possibly end up in bankruptcy in the future or take a small hit now and hopefully remain solvent.

Before you do anything, get a consultation with a lawyer that deals with foreign debt to make sure you understand all the possible consequences of your actions.

Michael

I just want to warn you that there are things that collect agencies do that are illegal. One is that they may file a lawsuit in a court that doesn't have jurisdiction or file a lawsuit after the statute of limitations expires and hope that you won't show up therefore getting a default judgment. If you show up and show that either of those things are illegal, the judge will dismiss the lawsuit.

dave2003

Veering slightly off topic, those who owe money in the U.K. and now live abroad should know that an English county court judgement can be enforced in some foreign jurisdictions under various treaties. Canada and the U.K. have a reciprocal agreement, and in certain circumstances U.S. states will enforce English judgements, and vice a versa.

NatashaB

Or call the CCCS or Payplan in the UK who will provide you with advice on UK debt management for free. I would really recommend that you look on the MSE board - I realise you're not in the UK but it is UK debt you are dealing with and there will be lots of advice on there about how to write a template letter and deal with collection agencies.

dave2003, I am sure your point about enforcing CCJs and reciprocal agreements is correct - but in deciding whether to enforce it they will weigh up the value of the debt against what it will cost them and I imagine in most cases they would decide it is not worth their while. Of course if they know that you have won the US lottery and there is money or an asset to pursue that is a different story.

The CCCS does not charge any fees to anyone who uses the service, they are a charity (although even charities have to maximise profits), there is nothing 'shady' about them. You can call them on +44 113 297 0126. They have a section on their website for people with UK debts living outside the UK. http://cccs.co.uk/InfoCentre/NonUKresidents.aspx

Payplan also mention they will help non-UK residents with UK debt:

http://www.payplan.com/contact-us.php

steve100100

True enough but if you are not resident in the UK then you can't be served with a ccj.

Obviously if you bail out of the UK with a ccj already served, then that could well be enforceable overseas.

steve100100

HSBC UK can and do sue in US courts.

Michael

That is pretty easy when someone is sued in the federal court system but normally debts owed by an individual are a different jurisdiction. HBSC owns HFC so that may be where the majority of lawsuits may be coming from.

steve100100

County court, not federal.

alextemple

Personally I would stop paying them. if it is crippling you in the US and things are really that bad I would cease paying for at least a month or two then try to negotiate lower/extended payments. If they refuse then simply stop. Honestly what more can you do?
As you said you have rent and bills to pay over here which are honestly more important. It seems like you are not planning on returning to the UK anyhow. At the very least I would stop paying HSBC.
You wouldn't be the first UKC to make the leap across the pond and give their creditors the V sign.