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Moving to U.K. from USA with existing loans?

Moving to U.K. from USA with existing loans?

Old Nov 23rd 2019, 8:08 pm
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Default Moving to U.K. from USA with existing loans?

I know credit card debt doesn’t follow you across the pond but does anyone know if this applies to personal loans from a small US only bank?
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Old Nov 23rd 2019, 10:10 pm
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Default Re: Moving to U.K. from USA with existing loans?

In the day and age of debts being sold to collection agencies they can and do follow you. Plus default loans/cards etc incur interest, admin fees etc and so on. Best bet is to pay off outstanding debts, even if you make arrangements to pay a small amount off each week, fortnight, month. You don't want that hanging over your head.
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Old Nov 25th 2019, 11:48 am
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Default Re: Moving to U.K. from USA with existing loans?

Originally Posted by Britishbitz View Post
In the day and age of debts being sold to collection agencies they can and do follow you. Plus default loans/cards etc incur interest, admin fees etc and so on. Best bet is to pay off outstanding debts, even if you make arrangements to pay a small amount off each week, fortnight, month. You don't want that hanging over your head.
thanks for the info!
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Old Nov 25th 2019, 12:52 pm
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Default Re: Moving to U.K. from USA with existing loans?

Originally Posted by Indi129 View Post
I know credit card debt doesn’t follow you across the pond but does anyone know if this applies to personal loans from a small US only bank?
Your credit score doesn't follow you but your debt is your debt and goes with you wherever you go. Why are you asking?
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Old Nov 25th 2019, 3:28 pm
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Default Re: Moving to U.K. from USA with existing loans?

A lot of what I read online says credit debt doesn’t follow you, ditto student loans, but was just curious about other loans (personal and such). FYI I don’t have any personal or student loans, but do have credit debt and was wondering how it all worked if countries have different credit systems in place, and if loan institutions aren’t told where you’re moving to.
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Old Nov 25th 2019, 3:35 pm
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Default Re: Moving to U.K. from USA with existing loans?

Settle your loans before you leave. If you can’t do that call the company and come to some arrangement. It’s the right thing to do. The debt may well follow you to wherever you move to. We have also had people on BE who have had elderly parents etc hassled for payment.
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Old Nov 26th 2019, 3:18 pm
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Default Re: Moving to U.K. from USA with existing loans?

Originally Posted by Indi129 View Post
A lot of what I read online says credit debt doesn’t follow you, ditto student loans
I think you maybe read someone's wishful thinking - the Student Loans Company can and does take overseas enforcement action against delinquent borrowers.


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Old Nov 30th 2019, 5:30 pm
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Default Re: Moving to U.K. from USA with existing loans?

It's highly unlikely any unsecured debt will follow you across the pond, it's just too expensive for a creditor to raise a case in a foreign land and pursue it.

However, what happens is the creditor will normally write off the bad debt and is required to report it to the IRS. They will and do invoice for taxes on the "free money" you received.

IMO, this is all you need to be prepared to pay on your debt if you choose to not pay or are unable to pay it.
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Last edited by djsoul; Nov 30th 2019 at 5:33 pm.
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Old Nov 30th 2019, 6:06 pm
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Default Re: Moving to U.K. from USA with existing loans?

Originally Posted by djsoul View Post
It's highly unlikely any unsecured debt will follow you across the pond, it's just too expensive for a creditor to raise a case in a foreign land and pursue it.

However, what happens is the creditor will normally write off the bad debt and is required to report it to the IRS. They will and do invoice for taxes on the "free money" you received.

IMO, this is all you need to be prepared to pay on your debt if you choose to not pay or are unable to pay it.
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Depending on the amount...the debt could be sold to a US agency.
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Old Dec 1st 2019, 5:11 pm
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Default Re: Moving to U.K. from USA with existing loans?

All off topic posts regarding US bankruptcy have been moved to a new thread in the Trailer Park forum...

Bankruptcy in the US
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Old Dec 2nd 2019, 1:19 pm
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Default Re: Moving to U.K. from USA with existing loans?

I personally think it would be immoral not settle a debt before leaving. Of course if one is not able to do so then at least contact the lender to explain the situation and arrange some kind of settlement. Money is not free and someone else will have to pay for the outstanding amount.
Just my opinion.
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Old Dec 2nd 2019, 1:21 pm
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Default Re: Moving to U.K. from USA with existing loans?

Originally Posted by TiaMaria57 View Post
I personally think it would be immoral not settle a debt before leaving. Of course if one is not able to do so then at least contact the lender to explain the situation and arrange some kind of settlement. Money is not free and someone else will have to pay for the outstanding amount.
Just my opinion.
Agreed.

Of course debts can always be repaid whilst living overseas.
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Old Dec 2nd 2019, 1:23 pm
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Default Re: Moving to U.K. from USA with existing loans?

Originally Posted by Jerseygirl View Post
All off topic posts regarding US bankruptcy have been moved to a new thread in the Trailer Park forum...

Bankruptcy in the US
I'll have to change my clothes now. What does one wear in a trailer park?
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Old Dec 2nd 2019, 1:26 pm
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Default Re: Moving to U.K. from USA with existing loans?

Originally Posted by spouse of scouse View Post
I'll have to change my clothes now. What does one wear in a trailer park?
I can’t answer that...I don’t want to offend anyone.

Last edited by Jerseygirl; Dec 2nd 2019 at 1:29 pm. Reason: Changed my mind
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Old Dec 2nd 2019, 3:17 pm
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Default Re: Moving to U.K. from USA with existing loans?

I've always lived in the UK, but did apply to declare myself bankrupt in the past and it wasn't an easy decision or one that was entered into lightly either I might add; the circumstances at the time simply meant that I had no other options. Thankfully the judge at district court agreed (even if you make a bankruptcy application it still has to be accepted by the court and isn't a foregone conclusion) and granted the order. Because I cooperated fully with the Official Receiver, I was discharged from the bankruptcy order after 9 months. For many people it can be a viable option (and let's remember that it's a perfectly legal option too) and I would recommend it if the individual's circumstances allowed for it and they were fully informed and understood the consequences and ramifications of doing so.

Last edited by materialcontroller; Dec 2nd 2019 at 4:17 pm.
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