Debt questions from around the world, helping each other by giving and receiving advice on UK based debt.

Moderators: TalbotWoods, JaneClack

Byarigold
#220990 Hi Guys, new here, hope you can help.

Basically we emigrated to New Zealand last year, we sold our home but still have post redirected , so havent officially informed banks etc.

I left with about £12,000 worth of debt, £4,000 on 3 different credit cards.

I have been paying them but with the exchange rate it is starting to get hard, I understand I could conceivably just cancel my direct debits and it is unlikely they would ever trace me, I also understand that my credit score will be ruined, these are risks im willing to take as im not planning on returning.

The fly in the ointment is I own 2 buy to lets, they have some equity but dont really produce much mothly, obviously the rent is paid in to a uk account and every so often i pull a few hundred quid over to nz.

I really dont want to sell these, I know if I have debts and have no other way of paying I should sell them, but i have had a really hard few years and these 2 buy to lets are my last hope of having some sort of nest egg.

Any advice? would these credit card companies accect £10 a month or something and not involve dca's? Or if I just cancel my direct debits im pretty sure they wouldnt find me, but would they find out I have these 2 properties and could i literally have them taken off me without even contacting me?

Basically, leaving debt in the uk, i undestand im pretty safe, but with 2 propertys left in the uk, am i screwed?

Hope you can help?
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ByJaneClack
#221004 I think you know what I would say.

Use the rents from the BTL to pay your creditors rather than pull it over every few months.

Sorry to be negative but you have income coming in which you could use to pay your debts and keep your long-term investments safe.
Byarigold
#221026 At £200 every few months it will be 30+ years
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ByJaneClack
#221030 Yes, but your house/investment will be safe.

It is a gamble only you can decide on. I do not know whether they will find these properties unless of course they were quoted on any applications for credit or the mortgages appear on your credit file but if they do they could go for court action. To o for court action they have to issue a default to your last known address and then issue a claim form. People do get CCJs in absentia - they can be overturned but unless the money can be paid - they go for it again with the right details. Then if the money is not paid they can go for charging orders on the property ie turn the unsecured debt into a secured debt on the house.

I am sorry this is not palatable but forewarned is forearmed!
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Bymoaner
#221031 It is easy enough to do a Land Registry search so yes, they would definitely find out that you are a property owner.
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