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If you have recently moved abroad but still have outstanding debts held in the UK, you’ll need to know what this means for you. Moving overseas doesn’t mean the debt will go away but you may be able to deal with your arrears through a managed debt solution.
Will I be expected to pay back my debts when abroad?
Put simply, yes. Moving abroad won’t make the debts disappear, and your creditors will still expect you to pay back your arrears whilst out the country, just as if you were living back home. You will need to let your creditors know if you have moved abroad and tell them your new address.
Many creditors will look to contact you if you move abroad and they may even consider using a debt collection agency in the new country you are living in. Many European countries have signed up to international agreements whereby their courts and insolvency services can cooperate to collect debts from people who have moved abroad.
If you move abroad and leave assets behind in the UK, your UK creditors may apply to the court to seize your assets. You will need to be wary that swiftly moving abroad and leaving assets back in the UK won’t stop them from being seized.
Can I still receive advice whilst abroad?
You don’t necessarily need to be a UK resident to enter into a debt solution. If you are in a managed debt solution in the UK but move abroad, you should keep your debt management company updated about any changes in your circumstances. You will need to be aware that overseas phone calls may be charged, so please check this with your phone provider.
If you move abroad without a debt solution, you should seek professional advice regarding which solutions are available.
What action can I take?
You can contact your creditors to try and arrange a repayment plan that suits you. You may find that some creditors will not give you the breathing space you are looking for, but it doesn’t harm to ask and see if you can reduce your monthly payments and pay back your debts over a longer period of time.
Things to bear in mind
- If you are sending money back to the UK, your bank or building society may charge you for your transactions.
- You may be wise to consolidate all of your payments into one regular payment (like a DMP or an IVA) and try to negotiate a repayment plan with lower monthly repayments. Your creditors will need to approve this but it’s worth asking, to try and help your situation.
- If you decide to declare yourself bankrupt in another country, there may be different rules in place and you could find your bankruptcy lasts longer or is more complicated than one approved in the UK.
Get debt help and advice
You don’t need to worry about debt alone. If you are a UK resident, get free, professional advice from PayPlan at www.payplan.com
Our advisers are here to help and they will be happy to talk to you about your financial situation. Get in touch today by calling our freephone number: 0800 280 2816.