Debt management plan moving abroad

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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.

Explore your debt solution options

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.

Our advisers are here to help and they will be happy to talk to you about your financial situation. Get debt help online or call us on 0800 316 1833 for a confidential conversation.

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FAQs

Why do I have to change my bank account?

If you have a current account with a company you owe money to, you will be required to open a new bank account. This is not only the case with a DMP but you should change your bank account if you are going to make reduced payments to a company that you also bank with. Banks have the “Right to Offset” so any money in your current account could be used to pay another debt with the bank.

Will I have to live on a tight budget during my Debt Management Plan (DMP)?

To enter into and maintain a successful Debt Management Plan you will need to live within a budget, however this is discussed with you openly. PayPlan are required to submit your income and expenditure details to your creditors.

Remember that when we’re negotiating your DMP, it is in your interest if we can show your creditors you are prepared to stick to a realistic budget to help repay your debts.

Will I have to tell my partner about the Debt Management Plan (DMP)?

We offer an absolutely confidential service from start to finish, so PayPlan will never force you to tell your partner about your debt situation, although support is available if you wish to tell them.

A DMP doesn’t usually affect your partner’s credit rating, but if you have a financial association, such as shared debts or guarantor debts, then it could do.

Whenever we contact a client we take great care to avoid divulging the nature of our call to anyone but the client.

Which debts are included in a Debt Management Plan (DMP)?

A DMP will only help you make reduced payments to your unsecured creditors, therefore the debts that can be included are:

Personal loans (loans taken to purchase cars are fine but Hire Purchase (HP) agreements cannot be included as they are secured against the item being purchased)
Credit cards
Store cards
Catalogues
Overdrafts

Secured debts can’t be included in DMPs because any payments on secured debts that aren’t met in full, can lead to the goods being repossessed. This website provides details on house repossession and car repossession, which are all consequences of not maintaining mortgage or hire purchase payments.

Is my home at risk if I enter into a Debt Management Plan (DMP)?

A Debt Management Plan is an informal arrangement which is not legally binding and although having a DMP could reduce the chance that the property would be at risk, there is a chance a creditor could take legal action such as securing a charging order on the property. This would secure the debt and a creditor could force the sale of the property at any point during a debt management.