Leaving my debts in the UK
Oct 8th 2012, 7:19 pm
#1
Just Joined
Thread Starter
Joined: Aug 2012
Posts: 13
Leaving my debts in the UK
Hello,
I want to move to Spain but I have in the UK about £4000 in debts, £3000 paying back to debt collectors and £1000 social fund. If I leave the UK and move to Spain, would they go after me?
I don't mind paying them when I come back, maybe in a few years' time, but at the moment, if I go to Spain, it would be too hard to make any payments. Any advice, please?
Thanks.
I want to move to Spain but I have in the UK about £4000 in debts, £3000 paying back to debt collectors and £1000 social fund. If I leave the UK and move to Spain, would they go after me?
I don't mind paying them when I come back, maybe in a few years' time, but at the moment, if I go to Spain, it would be too hard to make any payments. Any advice, please?
Thanks.
Oct 8th 2012, 7:26 pm
#2
Not Banned (yet)
Joined: Aug 2008
Location: Madrid
Posts: 6,400
Re: Leaving my debts in the UK
One problem maybe opening a bank account - maybe someone here has done it whilst defaulting on debts?
You "may" find that the amounts are deemed small enough not to bother with, if the authorities realise you've scarpered abroad. However the debts may build up with interest and when you go back to the UK one day...
Surely better to enter a debt agreement or even take the bankruptcy route - after 3 years i understand you can start again...
Get to the Citizens Advice Bureau and get some expert advice.
You "may" find that the amounts are deemed small enough not to bother with, if the authorities realise you've scarpered abroad. However the debts may build up with interest and when you go back to the UK one day...
Surely better to enter a debt agreement or even take the bankruptcy route - after 3 years i understand you can start again...
Get to the Citizens Advice Bureau and get some expert advice.
Oct 8th 2012, 7:42 pm
#3
On the road again.
Joined: Aug 2008
Location: On Top of the World
Posts: 17,507
Re: Leaving my debts in the UK
The amount owed to debt collectors could have increased substantially in a few years time with all the interest and other costs they're likely to add on.
Are you seriously intending returning in a few years to pay it off or simply hoping to disappear off the radar till they give up and the slates wiped clean which in any event would leave you with a dodgy credit history and maybe more problems besides ?
If you can't pay it off in the UK how do you expect to raise the funds in Spain considering how desperate the situation is here ?
Apologies if it's none of my business, but I just wondered.
Are you seriously intending returning in a few years to pay it off or simply hoping to disappear off the radar till they give up and the slates wiped clean which in any event would leave you with a dodgy credit history and maybe more problems besides ?
If you can't pay it off in the UK how do you expect to raise the funds in Spain considering how desperate the situation is here ?
Apologies if it's none of my business, but I just wondered.
Oct 8th 2012, 7:45 pm
#4
BE Enthusiast
Joined: Mar 2012
Posts: 487
Re: Leaving my debts in the UK
Should be interesting demonstrating a credible income.
Oct 8th 2012, 7:54 pm
#5
BE Enthusiast
Joined: Aug 2009
Location: now just seville ( province)
Posts: 550
Re: Leaving my debts in the UK
I have been told by a "friend" that if you have a debt with say a credit card company and they sell it on to a debt collecting agency, then this debt is not enforceable. i.e. only the original creditor can legally enforce a debt unless you agree to the debt collecting agency to pay them for the debt. This is not something I am prepared to try, but I would be interested to find out if it is true.
Pete
Pete
Oct 8th 2012, 8:07 pm
#6
MODERATOR
Joined: Mar 2007
Location: Costa Valencia
Posts: 14,800
Re: Leaving my debts in the UK
In previous threads you have asked about welfare help in Spain so I am wondering how you aim to support yourself if you move here. Surely it would be better to stay in the UK and take full responibility for the debts that you have incurred. Spain has its own difficulties and cannot help their own people let alone people who elect to move here thinking that the grass is greener or wanting escape their own difficulties.
Think very, very carefully before taking this step as I suspect that it will be extremely detrimental to your financial status.
Rosemary
Think very, very carefully before taking this step as I suspect that it will be extremely detrimental to your financial status.
Rosemary
Oct 8th 2012, 8:19 pm
#7
On the road again.
Joined: Aug 2008
Location: On Top of the World
Posts: 17,507
Re: Leaving my debts in the UK
Well maybe he doesn't wish to appear in the Spanish system either which although not legal would be possible and could mean living on black money, not easy,.........or something else like robbing the odd bank or two 
.......but there again best do it sharpish cos they'll soon be skint as well, unless they don't mind Angie stomping all over them in her jackboots.
.......but there again best do it sharpish cos they'll soon be skint as well, unless they don't mind Angie stomping all over them in her jackboots.
Oct 8th 2012, 8:28 pm
#8
Forum Regular
Joined: Sep 2012
Posts: 101
Re: Leaving my debts in the UK
the OP has also asked about Canada? and now spain..get the sense that you are desperate. Hope all goes well for you
Oct 9th 2012, 3:24 am
#9
Account Closed
Joined: Sep 2009
Posts: 45
Re: Leaving my debts in the UK
Hello,
I want to move to Spain but I have in the UK about £4000 in debts, £3000 paying back to debt collectors and £1000 social fund. If I leave the UK and move to Spain, would they go after me?
I don't mind paying them when I come back, maybe in a few years' time, but at the moment, if I go to Spain, it would be too hard to make any payments. Any advice, please?
Thanks.
I want to move to Spain but I have in the UK about £4000 in debts, £3000 paying back to debt collectors and £1000 social fund. If I leave the UK and move to Spain, would they go after me?
I don't mind paying them when I come back, maybe in a few years' time, but at the moment, if I go to Spain, it would be too hard to make any payments. Any advice, please?
Thanks.
Oct 9th 2012, 6:15 am
#10
BE Forum Addict
Joined: Jun 2009
Location: Valencia area
Posts: 1,157
Re: Leaving my debts in the UK
Hello,
I want to move to Spain but I have in the UK about £4000 in debts, £3000 paying back to debt collectors and £1000 social fund. If I leave the UK and move to Spain, would they go after me?
I don't mind paying them when I come back, maybe in a few years' time, but at the moment, if I go to Spain, it would be too hard to make any payments. Any advice, please?
Thanks.
I want to move to Spain but I have in the UK about £4000 in debts, £3000 paying back to debt collectors and £1000 social fund. If I leave the UK and move to Spain, would they go after me?
I don't mind paying them when I come back, maybe in a few years' time, but at the moment, if I go to Spain, it would be too hard to make any payments. Any advice, please?
Thanks.
You can forget the credit card debt as they cannot persue you, but as others have said you will have a bad credit rating if & when you go back.
Oct 9th 2012, 7:40 am
#11
Forum Regular
Joined: Nov 2006
Posts: 100
Re: Leaving my debts in the UK
I'm not sure if I can post a link but there is a Consumer Action Group forum which will help you to understand your debts and give you good advice on how to manage them.
It will also tell you what to expect on returning to the UK if you have left debts behind.
It will also tell you what to expect on returning to the UK if you have left debts behind.
Oct 9th 2012, 9:47 am
#12
Just Joined
Joined: Oct 2012
Posts: 5
Re: Leaving my debts in the UK
LeavingtheUK: Hi, I have a family member who has already been down this road so I can offer a bit of an insight to a few questions you have. As others have said; if you run away from the debts then it is a simple case of 'going the distance' because whilst you are away [as already said] those debts will be amassing and to such an extent that if you think you can return and then pay them off - well I think not, unless you can make a load of dosh whilst away.
After a period of time [variable dependent upon amount outstanding] and when it is clear that you cannot be accessed to pay, the creditors will probably sell your debt to a recovery company. Note: when they do that, then effectively you are free of that debt provided that you do not communicate in any way at all with the loan recovery company. To do so is seen in law as an acknowledgement of the debt and therefore you are deemed to have entered into a contract. The loan recovery company will try to recover the debts but they have 5 years to do so. After that they can no longer continue. Effectively this means that you need to be out of the country for 5 years.
Additionally, any legal action taken out against you for debt recovery by the creditors such as Banks, Credit Card Companies etc; also become void after 5 years.
Sound good eh? Well not so and here is why. Should you go this route then on your return you will not be able to acquire a Bank Account of any kind. You will effectively be 'Black Listed' and have a nil credit rating. Now if you think that that is no big deal consider this - nearly every employment pays staff through BCT or similar. Some by cheque still and very few by cash in hand. Not having a Bank Account will become the biggest nightmare and influence on your future life.
My family member has been through all of this and it has taken over 20 years to get back to a reasonable footing. It aint worth it in the long run. Oh and by the way, staying out of the UK for that length of time under these circumstances is not as easy as it sounds.
So to answer you main question - no they would not go after you.
My sincere advice is simple and as others here have already said, how on earth can you consider moving to Spain [or anywhere else] if you cannot clear these debts? Do you have any idea how expensive it is in Spain to live and especially under current circumstances? Talk to those you owe and get qualified professional advice on how to go forward. The task may seem daunting and it will take some hard work but it can be done.
Good luck.
After a period of time [variable dependent upon amount outstanding] and when it is clear that you cannot be accessed to pay, the creditors will probably sell your debt to a recovery company. Note: when they do that, then effectively you are free of that debt provided that you do not communicate in any way at all with the loan recovery company. To do so is seen in law as an acknowledgement of the debt and therefore you are deemed to have entered into a contract. The loan recovery company will try to recover the debts but they have 5 years to do so. After that they can no longer continue. Effectively this means that you need to be out of the country for 5 years.
Additionally, any legal action taken out against you for debt recovery by the creditors such as Banks, Credit Card Companies etc; also become void after 5 years.
Sound good eh? Well not so and here is why. Should you go this route then on your return you will not be able to acquire a Bank Account of any kind. You will effectively be 'Black Listed' and have a nil credit rating. Now if you think that that is no big deal consider this - nearly every employment pays staff through BCT or similar. Some by cheque still and very few by cash in hand. Not having a Bank Account will become the biggest nightmare and influence on your future life.
My family member has been through all of this and it has taken over 20 years to get back to a reasonable footing. It aint worth it in the long run. Oh and by the way, staying out of the UK for that length of time under these circumstances is not as easy as it sounds.
So to answer you main question - no they would not go after you.
My sincere advice is simple and as others here have already said, how on earth can you consider moving to Spain [or anywhere else] if you cannot clear these debts? Do you have any idea how expensive it is in Spain to live and especially under current circumstances? Talk to those you owe and get qualified professional advice on how to go forward. The task may seem daunting and it will take some hard work but it can be done.
Good luck.
Oct 9th 2012, 10:45 am
#13
Forum Regular
Joined: Jun 2012
Posts: 196
Re: Leaving my debts in the UK
I have a family member who left debts in the UK, these were sold to a debt recovery company, 18 months ago the debt recovery company wrote to them at their spanish address, they did not respond, the company wrote to them 3 times, luckily not once by recorded delivery, it was obviously a shot in the dark for this company as the five years were just running out, since the 5 years have lapsed no more letters!
Oct 9th 2012, 3:48 pm
#14
Joined: Jun 2011
Location: In the middle of 10million Olive Trees
Posts: 12,053
Re: Leaving my debts in the UK
LeavingtheUK: Hi, I have a family member who has already been down this road so I can offer a bit of an insight to a few questions you have. As others have said; if you run away from the debts then it is a simple case of 'going the distance' because whilst you are away [as already said] those debts will be amassing and to such an extent that if you think you can return and then pay them off - well I think not, unless you can make a load of dosh whilst away.
After a period of time [variable dependent upon amount outstanding] and when it is clear that you cannot be accessed to pay, the creditors will probably sell your debt to a recovery company. Note: when they do that, then effectively you are free of that debt provided that you do not communicate in any way at all with the loan recovery company. To do so is seen in law as an acknowledgement of the debt and therefore you are deemed to have entered into a contract. The loan recovery company will try to recover the debts but they have 5 years to do so. After that they can no longer continue. Effectively this means that you need to be out of the country for 5 years.
Additionally, any legal action taken out against you for debt recovery by the creditors such as Banks, Credit Card Companies etc; also become void after 5 years.
Sound good eh? Well not so and here is why. Should you go this route then on your return you will not be able to acquire a Bank Account of any kind. You will effectively be 'Black Listed' and have a nil credit rating. Now if you think that that is no big deal consider this - nearly every employment pays staff through BCT or similar. Some by cheque still and very few by cash in hand. Not having a Bank Account will become the biggest nightmare and influence on your future life.
My family member has been through all of this and it has taken over 20 years to get back to a reasonable footing. It aint worth it in the long run. Oh and by the way, staying out of the UK for that length of time under these circumstances is not as easy as it sounds.
So to answer you main question - no they would not go after you.
My sincere advice is simple and as others here have already said, how on earth can you consider moving to Spain [or anywhere else] if you cannot clear these debts? Do you have any idea how expensive it is in Spain to live and especially under current circumstances? Talk to those you owe and get qualified professional advice on how to go forward. The task may seem daunting and it will take some hard work but it can be done.
Good luck.
After a period of time [variable dependent upon amount outstanding] and when it is clear that you cannot be accessed to pay, the creditors will probably sell your debt to a recovery company. Note: when they do that, then effectively you are free of that debt provided that you do not communicate in any way at all with the loan recovery company. To do so is seen in law as an acknowledgement of the debt and therefore you are deemed to have entered into a contract. The loan recovery company will try to recover the debts but they have 5 years to do so. After that they can no longer continue. Effectively this means that you need to be out of the country for 5 years.
Additionally, any legal action taken out against you for debt recovery by the creditors such as Banks, Credit Card Companies etc; also become void after 5 years.
Sound good eh? Well not so and here is why. Should you go this route then on your return you will not be able to acquire a Bank Account of any kind. You will effectively be 'Black Listed' and have a nil credit rating. Now if you think that that is no big deal consider this - nearly every employment pays staff through BCT or similar. Some by cheque still and very few by cash in hand. Not having a Bank Account will become the biggest nightmare and influence on your future life.
My family member has been through all of this and it has taken over 20 years to get back to a reasonable footing. It aint worth it in the long run. Oh and by the way, staying out of the UK for that length of time under these circumstances is not as easy as it sounds.
So to answer you main question - no they would not go after you.
My sincere advice is simple and as others here have already said, how on earth can you consider moving to Spain [or anywhere else] if you cannot clear these debts? Do you have any idea how expensive it is in Spain to live and especially under current circumstances? Talk to those you owe and get qualified professional advice on how to go forward. The task may seem daunting and it will take some hard work but it can be done.
Good luck.
but does not apply in the case of Local Authorities, where if you owe money on Rates for example you cannot have that expunged, lost or whatever.
This is a loophole provided to them in the original draft of the law and never altered.
Oct 9th 2012, 10:52 pm
#15
Just Joined
Joined: Oct 2012
Posts: 5
Re: Leaving my debts in the UK
you cannot have that expunged
Okay Got it
If you do not pay an installment when due, the following stages take place until payment is received.
First Reminder Notice
You should ensure that the payment reaches the Council by the installment date. If the payment is not received within 14 days of the installment falling due, a Reminder Notice will be issued. If you receive a Reminder, you should make the requested payment immediately. Should the payment not be received within seven days of the date of the Reminder, you will lose your right to pay by installments; if after a further seven days the total balance outstanding has not been paid, a summons can be issued.
Second Reminder Notice
If, after receiving a First Reminder Notice, your installments once again fall into arrears, you will be sent a Second Reminder Notice. This will be the last Reminder that you receive during the Council Tax year. If your installments should once again become overdue, you will lose your right to pay by installments without receiving any further notice. As with the First Reminder Notice, if you fail to pay the installments due within seven days, your right to pay by instalments will be lost and a summons may be issued if payment of the total balance is not received after a further seven days.
Final Notice
If your instalments fall into arrears for a third time, the Council will issue a Final Notice, demanding the total balance outstanding for the remainder of the year. You already have lost your right to pay by instalments and must pay this amount within seven days to avoid being sent a summons.
Summons
If, after receiving one or a number of the above notices, you do not make the payment demanded, the Council will apply to the local Magistrates' Court for a Summons to be issued against you. The issue of a Summons will also involve you incurring costs, which presently stand at £85.00; these are incurred at the time the Summons is issued and must be paid in addition to the outstanding balance of your Council Tax. The Council will be prepared to discuss a way you can pay the Summons and you should contact us immediately.
Liability Order
Failure to pay the Summons will result in the Council making application to the Court for a Liability Order. This will give the Council the power to instruct Bailiffs to visit your property to collect the money outstanding; this will incur further costs. The Liability Order also gives the Council other powers, including instructing your employers to deduct the money directly from your salary or wages; making a deduction directly from your Income Support; and, in certain cases, having a charge put on your property, which could force it to be sold. Bankruptcy proceedings may also be considered.
Committal To Prison
If the Council are still unable to recover the debt outstanding, a further application for a Committal Summons may be made to the Magistrates' Court. This Summons will require you to appear before the Court to explain why the Council Tax has not been paid. If you do not answer this Summons, you can be arrested and brought before the Court. These actions will once again incur further costs. If, after enquiring into your means and conduct, the Court find that the Council Tax has not been paid due to Willful Refusal or Culpable Neglect, they can impose a term of imprisonment of up to 90 days.
First Reminder Notice
You should ensure that the payment reaches the Council by the installment date. If the payment is not received within 14 days of the installment falling due, a Reminder Notice will be issued. If you receive a Reminder, you should make the requested payment immediately. Should the payment not be received within seven days of the date of the Reminder, you will lose your right to pay by installments; if after a further seven days the total balance outstanding has not been paid, a summons can be issued.
Second Reminder Notice
If, after receiving a First Reminder Notice, your installments once again fall into arrears, you will be sent a Second Reminder Notice. This will be the last Reminder that you receive during the Council Tax year. If your installments should once again become overdue, you will lose your right to pay by installments without receiving any further notice. As with the First Reminder Notice, if you fail to pay the installments due within seven days, your right to pay by instalments will be lost and a summons may be issued if payment of the total balance is not received after a further seven days.
Final Notice
If your instalments fall into arrears for a third time, the Council will issue a Final Notice, demanding the total balance outstanding for the remainder of the year. You already have lost your right to pay by instalments and must pay this amount within seven days to avoid being sent a summons.
Summons
If, after receiving one or a number of the above notices, you do not make the payment demanded, the Council will apply to the local Magistrates' Court for a Summons to be issued against you. The issue of a Summons will also involve you incurring costs, which presently stand at £85.00; these are incurred at the time the Summons is issued and must be paid in addition to the outstanding balance of your Council Tax. The Council will be prepared to discuss a way you can pay the Summons and you should contact us immediately.
Liability Order
Failure to pay the Summons will result in the Council making application to the Court for a Liability Order. This will give the Council the power to instruct Bailiffs to visit your property to collect the money outstanding; this will incur further costs. The Liability Order also gives the Council other powers, including instructing your employers to deduct the money directly from your salary or wages; making a deduction directly from your Income Support; and, in certain cases, having a charge put on your property, which could force it to be sold. Bankruptcy proceedings may also be considered.
Committal To Prison
If the Council are still unable to recover the debt outstanding, a further application for a Committal Summons may be made to the Magistrates' Court. This Summons will require you to appear before the Court to explain why the Council Tax has not been paid. If you do not answer this Summons, you can be arrested and brought before the Court. These actions will once again incur further costs. If, after enquiring into your means and conduct, the Court find that the Council Tax has not been paid due to Willful Refusal or Culpable Neglect, they can impose a term of imprisonment of up to 90 days.
I am sure there are loads of people who have and are doing this at the moment and without even leaving the UK!!