UK Debt When Moving Abroad
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The idea of moving abroad to escape debt seems to be more of a
common practice these days. People who have failed businesses or
are swamped in debt believe that moving abroad will give them a
fresh start and allow them to build a new life.
Reading some of the comments on various UK debt forums opinions
on this seem to be divided. Some people think running away from
debt is too much of a risk, and creditors will eventually catch up
with them whilst others encourage the idea, stating that there is
no way you will be found and people should move on and enjoy a new
life free from the responsibilities of debt.
In the past this might have been a successful way to start a new
life without the worry of unpaid debt. However, creditors and
courts alike seem to have caught up with the idea over the last few
years and have taken action to make it more difficult for people to
escape the responsibility of paying the money they owe.
Creditors taking action
Germany and Canada have reciprocal agreements with the UK when
it comes to tracing debtors and debt collection practices. There is
not much information available regarding other countries with such
agreements although a search on the web may reveal more, it is
possible that creditors do not want this information to be readily
available.
A reciprocal agreement in the UK means a UK Court can enforce a
CCJ (County Court Judgment) using the legal system of the other
country. If there is no such agreement in place, a creditor can
sell a debt to an agency in the relevant country and debt recovery
procedures will commence under the law of that land.
Tracing a debtor
The resources available to creditors for tracing a debtor are
vast. Although the resources in some countries may be limited,
there are still ways and means of finding people, especially once
the creditor has some idea of where the debtor has gone. A creditor
may have their own office in that country, or relations with other
credit companies in that area.
Creditors employ a variety of tactics to trace debtors. They may
go to the last known address, talk to the neighbors, family friends
or relatives who could unknowingly tell them of the persons
whereabouts. Once they know which country the debtor is in, their
job is made much easier.
Using an ATM card in another country shows us how easy it is to
get information from a UK account abroad. If we can do this so
simply, what other information is able to zip round the world
almost instantaneously?
Having resources to trace a debtor or having agreements with
other countries, or even the possibility of selling the debt to an
agency in the appropriate country does not automatically mean that
a creditor will be successful in tracing a debtor. In some cases,
people do get away with it. A creditor has a period of 6 years from
the last time a person acknowledged a debt to use the legal system
to recover monies. However, if a creditor has taken legal action on
an account, the debt can be legally recoverable indefinitely. This
means that someone could start a new life abroad and work hard for
the assets they accumulated, only to find a few years down the line
that a creditor has traced them! Everything they have worked for is
put at risk and could be taken from them to repay their debt.
What are the Options?
Many people who move abroad to escape their debts may not be
aware of the free financial help available. They do not even need
to telephone the UK, as there is free advice and help available on
the web. Just a quick email can put someones mind at rest and make
them realise they are not alone.
About the Author
There are companies such as FCL Debt Clinic (www.debtclinic.co.uk) who offer free financial assessment
and advice. FCL can also refer clients to a Debt Management Company
who charge no fees and can help negotiate affordable monthly
repayments on their clients behalf by setting up repayment plans
with their creditors. Anyone with a UK bank account or the use of
one for transferring money, with UK debts, can be helped. This way,
the ever-present worry of whether a debt is still around is no
longer there to haunt you.
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Article Published/Sorted/Amended on Scopulus 2006-06-07 23:13:20 in Business Articles
