LYM1

Hi

I really could do with some help, i am worrying myself silly.

Moved to spain a while a few years ago, things sadly have not gone as well as we'd hoped, my husband has 2 credit cards in his name, I was an additional card holder. Things have been very tight financially and we are now in a situation as my husband has had to accept a reduction in hours/wages or lose his job, we are hoping this will be a short term loss of hours, but who knows. As a result of lost hours work we cannot affoed monthly payments to credit cards.

Bought at the height of the boom here in spain, as a reslut of falling ppty prices we have no equity and no savings.

My worry is that if things dont change quickly the credit card companies, we are told could sell our debts to debt collections agencies.

Neither of us can stop thinking and worrying ourselves as to what might happen, as our liabilities exceed our assets.

As we no longer live in the uk, getting help advice is very difficult, I thought about an IVA but because we live in Spain that is not an option.

Can anyone answer the following questions which will hopefully will lift a little of the stress we are going through

1 Can the courts issue a ccj against my husband or me ( i was an additional card holder) as we dont live in spain?

2If they can what is the impact?

3 If we declare ourselves bankrupt, and as there would be nothing left for the credit card cos, what would happen?

4 Has anyone experienced similar issues and what was the outcome?

We have never been in this situation ever, my husband has held the cc#s for many years and we always paid the full amount off each month, we cannot afford to go back to the UK.

If anyone could answer the questions or give us any advice I would really appreciate it. By the way before people say pay what you owe, I totally understand but we cant. We have and are continually trying to get other jobs, we looked at renting out a room in our house but we cant because of the layout and having 2 young boys and a girl

Many thanks for any advice

Rotor

A grim situation , you may have to go back to the UK because you cant afford to live is Spain by the sounds of things,personally I`d cut up the credit cards , move you stuff back to the UK then give your house keys to the bank as it sounds like your in negative equity.DONT give the bank a forwarding address as the may hound you even in the UK , tell them you dont have one , only give an email address , you have to be as sneaky as the collection agencies.
As you have kids you may get help from social services and get moved to the top of a council house list , also visit Citizens advice regarding your spanish debt, they may recommend you go bankrupt , if you do no one can then hound you for prior debts.
Dont wait for the *hit to hit the fan, make concrete plans over the next day or so,THEN CARRY THEM OUT!

Good Luck!

Its also worth noting that your bank accounts can be frozen without notice in some cases so make sure they are all empty!

LYM1

Thank you rotor, i understand what you are saying but i just dont think we can act that quickly, perhaps we should.
We have not used credit cards for a couple of months and have since burnt them.

I am even more worried now, we dont have much in our bank, how can they suspend that? Is it only if we default on our mortgage? by the way the mortgage is up to date. We just cannot afford to pay the credit cards at all my parents are helping us out each month.

hopefully someone else will also offer some advice, i cant believe we are the only ones in this situation either now or in the past

Rotor

Numerous goverment agencies can freeze your bank account without notice and so can the banks under certain circumstances.

If you are up to date with the mortgage speak to bank and see if you can have a 6 or 12 month break , if they say no then you dont have a lot of choice ,then if your parents are able get them to get you a rented house in the UK, starting out agin is tough but it will be less stressfull than being scared to answer the front door!!

LYM1

starting to really worry now, are you saying the credit card cos could put a stop on my or our spanish bank a/c? if so we could not buy food or anything!

Legally do you think I am liable as I was not the card owner?

why would govt put stop on a/c? we are up to date with tax and soc sec payments in Spain

poolboy

Sorry to be negative but I completely disagree with the above advice.

What makes you think abandonment in Spain makes you untraceable in the UK. The Spanish banks don't want your house as they can't sell it, they would prefer you pay a token amount to keep the mortgage ticking over.

If you surrendered yr property here the bank managers brother would get it for nothing at a closed auction & you would be liable for the mortgage shortfall which would be accrueing interest on a daily basis.

Speak to the debt councellors - links are on Moneysavingexpert.com/forums.

Are there no villas to clean near you? pools to clean, gardens to clear? Sorry to patronise but it is summer & the towns are busy. Rastros flogging stuff from bins.

paintermujer

If you are not really behind on your other outgoings maybe you could come to some arrangement to pay with the cc companies.

They will help work out how much they think you can afford and I think they freeze the interest too.

I feel really sorry for you but I also dont think its the end of the world either if thats really all you are behind on.Not bad I reckon in these lean times.

You just need to act now.

Good Luck.

LYM1

Thanks pool boy, dont worry you are not patronising, it would be a good idea. However we dont live on the coast we are inland and not in an area that has rentals etc. we have and are trying to do anything to get work.

I think you are right about the spanish banks and by handing the keys back we are not helping ourselves in the long run.


My immediate worry now is who can put a stop on my bank a/c, there is not much in there but its all I have for food and essentials.

I cannot believe that a credit card co in the uk could put a stop on my a/c, I never had a contract with them anyway, surely they can't!

i believe if we can weather the storm keep payiong the mortgage, my husbands tax and soc sec, eventually things will get better. Its just how long the cc companies will give us and what they could do legally? I will have a look at your suggested site thanks

manamama

Hi

If I was in your situation, I would contact the credit card company and explain that you are unable to pay due to your financial circumstances.

I can't see how they would freeze your bank account unless they have been able to go through the courts.

The sooner the better, you contact them and make some arrangement.

The forum recommended already is good - moneysavingexpert. You can post and find people in similar situations.

Sorry you're having a hard time and hope it improves.

Mitzyboy

Can you just confirm.

These are UK credit cards, presumably registered to UK addresses, and you are worried about your Spanish bank accounts being frozen?

angiescarr

You are not the only ones in this situation!;-( We have much greater outgoings than income as a result of a fall in the £ during a building contract. If my husband doesn't get work soon we'll really be in it too.
Good luck.

Chica

I work for a charity and we recommend a company that will talk over all your debt problems and work out what you can or cannot afford to pay each month (as little as £1/mth if that's all you have spare) and will write to your credit card companies on your behalf telling them what you can afford to pay. They will also deal with any letters you get from collection agencies. I don't think I'm allowed to tell you who they are on here so please pm me if you want their details. Please try not to worry though, there is lots of help out there these days.

LYM1

Thanks for the responses so far.

Just to let you know:-

Mitzyboy- they are uk cards registered in my husbands name at our Spanish address, he informed them of our change of address when we moved 3 yrs ago. If you could let me know if this makes a difference that would be great

Thanks

LYM1

Chica

Thank you, my husband has spoken with a company who does this, he went through our income and expenditure with them, which he then sent to the cc co's. We have a shortfall each month, my parents are helping us by making up the difference as best they can.

The firm we spoke to said if you have not got it, you cannot pay them anything.

Mitzyboy

Well I guess it makes it a bit more complicated for them, as you don't reside in the country where the cards were registered. Some card companies wont actually let you have a card if you are no longer a UK resident. It's certainly difficult applying for a new one.

Theres a lot of talk about whether they can grab your home abroad if you default in the UK. Some say it can be done through an agency. My cards are all registered at a UK address so they arent aware of my Spanish one.

At the end of the day they will want their money, and if you make the effort to talk to them and sort out a repayment plan then they are going to happier than having to wade through all the legalities. I'd take the advice given and work out a deal for repaying it, and also thank your parents for chipping in