If you are very worried about your debts, you may be wondering how easy it would be to disappear and leave them all behind. perhaps you have already gone, leaving Britain because of Brexit.
Will your old records be linked with new ones on your credit records? Can your creditors find you if move, go abroad, change your name?
Some of these sorts of ideas aren’t very sensible – and there may be much better options! But let’s see what the problems are.
“I could move and not tell my creditors”
You could try to live “under the radar” of the credit reference agencies by not opening a new bank account or taking out any credit, including mobile contracts or paying for your car insurance in monthly installments. This is becoming harder to do:
- more types of payments are being included in credit records. It’s now common for utility bills to be included.
- you may find it hard to rent anywhere privately if you don’t appear to have a credit record;
- to get any form of benefits, you are likely to need an account they can be paid into and it can be tricky to open any account without proof of identity and address;
- if you change jobs, employers often need to see identity documentation. If you want to be paid cash in hand by an employer who doesn’t make identity checks, you may well end up being paid less than the minimum wage, not getting proper holiday or sick pay etc – you are setting yourself up to be exploited.
The other option is to live a more normal life, acquire a new credit record at your new address and hope that the credit reference agency systems never manage to link up your old record with your new one.
This may well not work. It’s common for people to think they have got away with it because they haven’t heard anything for years, only to get a letter from a debt collection agency just before the six-year limit is reached.
“If it’s over six years, am I safe?”
If it is more than six years since you made a payment to a debt and you haven’t acknowledged it in writing, it is possible the debt is statute-barred. Ifn this case you will be “safe” as although the debt still exists, the creditor can’t enforce it in court. Read Common questions about Statute-Barred Debt for more details about this as it is more complicated than just not having paid anything for 6 years.
But if your creditor has already gone to court for a CCJ, the debt will not become statute-barred. One of the problems about trying to hide from your creditors is that a creditor may get a CCJ (or even make you bankrupt!) and you don’t realise until years later. To find out if you have a CCJs without looking at your credit record you can use the Trust Online system.
“Would it help to change my name?”
You can call yourself anything you want in Britain. But if you want your name changed on your passport or driving licence, you usually need to use a deed poll. Banks normally require some official document such a marriage licence or a deed poll.
Changing your name does not mean that you can ignore debts taken out in your previous name – they are still “yours” no matter what you call yourself.
One of the main purposes of credit reference agencies is to check credit applications for fraud. Credit Reference Agencies have access to a wide variety of information. GAIN is a database of information about debtors who appear to have “gone away” without informing creditors of their new address. With so much detailed data, it is becoming easier to “find” people, even if they have changed their names.
If you see adverts for an e-book that explains how to set up a brand new credit identity, unlinked to your old one, don’t waste your money on it! The only person that will be smiling at the end is the author who is pocketing your money.
The better alternatives if you are in Britain
Trying to hide won’t be easy and may not work. The world is becoming increasingly connected – across borders and across different areas of life in Britain (employment, housing, finances). This is making it is much harder to run away from your debts.
If you are discovered after a few years, you then have to face up to the debt situation, interest may have been added and your credit record will probably have got worse. This will have delayed the endpoint at which you are actually debt-free and may have removed some of your “easier” options.
Find out what your alternatives are at the moment by reading What is my best debt solution? Even if your debts are completely unmanageable and you can’t make any payments to them, a Debt Relief Order or bankruptcy could give you a clean start. You can also talk in confidence to good debt advisers.
“Will my creditors find me abroad?”
Leaving the country does make it harder to be traced. And in 2019 credit reference agencies in different countries don’t share data:
- a bad credit rating here, even bankruptcy, doesn’t normally show up on credit records outside the UK;
- new credit records you establish outside the UK won’t be linked back to your old debts.
This may change in the future. Linking systems across borders will probably become easier; the biggest obstacle may be dealing with different countries information-sharing legislation.
A creditor you owe a lot of money to however may be able to trace which country you have gone to and use a local investigator to find you there. This is obviously more likely to happen for a £35,000 mortgage shortfall than a £500 catalogue debt.
Tackle problems before you leave the UK?
There are two good reasons to try to resolve your debts before leaving the country:
- in many countries it is surprisingly difficult to open new bank accounts and get a credit card if you are not a national of that country. The easiest way may be to go to a sister bank of a bank you use in the UK, rather than try for a “clean break”.
- the option of going bankrupt in England only applies for three years after you have emigrated.
But if you don’t know what you will be earning or what your expenses will be, it is hard to make payment arrangements in advance that you know you can afford.
Are you going home and will never return to Britain?
If you may return to Britain after a few years, ignoring your debts while you are abroad may mean you come back to a much more difficult situation.
But if you aren’t British and can’t see why you even return to Britain, then you may not care at all about your British debts and credit record unless you can be traced abroad and your creditors can take effective action against you if they do find you. But a lot depends on whether you will be well paid and have assets when you are back home.
Getting debt advice from abroad
If you have already left Britain, National Debtline has a factsheet on debt options if you live abroad. They also have a telephone number for use from outside the UK: 0044 121 410 6200.
Tom says
Due to a family death I need to move back to the US indefinitely in 2 months maybe less. I have a 3 month old £1000 HSBC credit card charge and a 6 month old £3000 Barclays credit card charge, minimum monthly payments paid on both. 2 mobile 24 month contracts of £50pcm in my name, O2 has 12 and EE has 21 months left. I also let a privately owned flat from a letting agency for £1400pcm, who hold no deposit. I’ve used up all of my savings and money from friends struggling to making payments after my (mental health) ESA was drastically reduced so no UK assets. When moving here, with dual citizenship for the first time 11 years ago. I believe I had to give HSBC my US bank accounts and/or US billing address(parent’s home) and possibly a copy of my passport (all still current) to open the account The same for an Orange pay as you go but signed a new monthly contract when it became EE. Which closed after fulfilling and moving my number to 02. The new EE contract was as a new customer, using my UK info including the same UK billing address as the last. Finally my current letting agency, don’t allow DSS & to show funds, know my US bank account but are paid from my UK bank. US credit (no UK association) already established. Where do I stand? What happens if I saying nothing and just leave now? What will happen if I stay the 2 months, don’t make payments & just leave? Does an annual letting contract with 2 months left vs a monthly one make a difference? Can they find me?
Sara (Debt Camel) says
Hi Tom,
I can’t comment on how likely your creditors are to be able to effectively pursue you in the states. None of those debts are huge. With mental health problems of your own and a death in the family, it doesn’t sound like you have any way to practically repay them in full now or in the near future. I suggest you talk to National Debtline who can help you look at your options and decide what you would feel most comfortable with.
Tom says
Ok thank you Sara. I wasn’t sure if the amounts were high/low enough for them to bother. Equally with the information already given to them how easy/hard it would be to find me.
Maria says
Hello,
I moved to the UK 5 years ago but will be returning to Ireland shortly. I had a DRO and I also have a few payday loans to pay. Will this follow me and catch up on me. I don’t plan on coming back to the UK again. I’m leaving due to my mental health from a violent relationship and I need to be with family?
Sara (Debt Camel) says
If the DRO has completed, it is all over and done with.
It’s hard to say what to do about the payday loans. I can’t guarantee they will never catch up with you. But interest is “capped” on them, so you won’t find that a £200 loan has grown into £1300. Why don’t you get settled in Ireland and then see if you have any spare money or not? You can talk to National Debtline from abroad https://www.nationaldebtline.org/EW/information/abroad/Pages/living-outside-the-uk.aspx.
Mark says
I’ve just moved back to the uk after living abroad for 6 years , I was paying a debt recovery agency an agreed , £10 a month
Up until last June when the building society told me my standing orders had been returned , from Feb to June 2018 , they don’t know why , I’ve herd nothing since , but they didn’t know where I was, I am now living in the uk , since Jan 19 . Still herd nothing , What would you suggest wait and see or what . .?
Sara (Debt Camel) says
Are you in a position where you can afford to pay them £10 a month? how large is the debt that remains?
Mark says
Prob about £24000, between my estranged wife and me so joint loan , I don’t know where she is , haven’t seen her for about 8 years , so she may have settled it I can’t find out and can’t believe she could afford to but who knows . And don’t want to . I can afford £10 a month , but don’t want to ask , them, why would they just stop taking my Standing order , and keep returning it to my Building Society I eventually cancelled my S O in June 2018 . Herd nothing since . But only got back to the uk in Dec 18 , my own flat in Jan 19 .
Sara (Debt Camel) says
Well one option would be for you to start putting aside the amount you could afford each month in a savings account, so it’s there if they get back in touch.
Mark says
Ok thanks for your time I’m sorry to be a bit vague, it’s all coming back slowly , I paid , £ 10a month, for 5 years then as I say , they stopped taking the the S. O , last Feb 2018 , I only found out in June . What are your thoughts as to why they stopped taking it and it being returned to my B ‘society ?
Sara (Debt Camel) says
Admin error? It’s hard to guess.
Tony says
About 2 years ago I moved out of a rented house and into my girlfriends housing association house. I had an ongoing dispute with the electricity provider at the time and obviously didn’t tell them when I move, but I know they’re still pursuing it as I get the odd email about it. Me and the missus have recently broken up and I am keeping the house and kids. I am worried that if I put my name on the tenancy, the debt recovery agents will be able to find me, especially as it is very close to the previous address. I would really appreciate it if you have any advice on the matter.
Thankyou.
Tony. X
Sara (Debt Camel) says
I think getting your name on that tenancy is the most important thing for you and your children. Yes this may mean you have to deal with the electricity debt, whether by repaying it or disputing it.
These days debts normally catch up with you anyway, so the chance of you hiding from this debt for 4 more years is pretty slim.
And if you want to dispute it, this is best done sooner rather than later.
Emma says
I’ve just ended my phone contract with O2. To do this they said I had to register as Pay as you Go or wait until the full 30 days notice. When doing this I asked for an alternative address for the sim to be sent to, not to change the current billing address (it was down as an old one). Well I looked today and they have changed it to my current one 😡 will this now be available for debt collectors to see? When registering the pay as you go, will that show up on my report? I have debt of about £20,000 and need realistically to look into going bankrupt. I can’t afford to pay back a lot, my partner pays for everything like rent (tenancy is in his name, I’m down as permitted person to stay but not tenant) and bills and I just about cover the food, petrol, nursery fees. Can my debt affect him?
Sara (Debt Camel) says
I don’t know if O2 will. Update your credit record with your current address. But it’s unrealistic to spend years trying to hide from debt collectors. I think you need debt advice on your whole situation.if your debts are still under £20,000 there is another typed of Insolvency, a Debt Relief Order that may work for you. If bankruptcy is you’d best option it’s usually better to get it over with as quickly as possible.
Bankruptcy should not affect your partner unless you have a joint bank account with him or joint debts – then his credit record would be affected.
In bankruptcy you would be allowed to pay for your share of the rent, bills etc. Whattgat share is depends on how much you earn and he earns. If he earns twice as much as you, he would be expected to pay 2/3 of the bills and you should pay 1/3.
So phone National Debtline on 0808 808 4000 and find out what your options are and the pros and cons of each. The sooner you do this, the sooner you can move on with your life.
Ell says
Hi there, I would like to ask, due to family problems I had to left UK I paid off all I had however my O2 phone I can’t pay because I can’t afford it.. it’s 700£..
My question is, if I didn’t pay it and cancel direct debit for them, will they find me in different country in EU?? Thank you
Sara (Debt Camel) says
Sorry but it’s hard to say for certain. You could talk to National Debtline (see https://www.nationaldebtline.org/EW/information/abroad/Pages/living-outside-the-uk.aspx) or if you don’t have any spare money you may think it’s more practical to wait and see if you are contacted?
Fallsdownlaughing says
No , the E u is full of Brits that have not paid various debts credit cards , loans , mobiles etc , And disappeared. It’s only when you come back they find you . If you have a postal address in the U K they will write to you , so the occupiers, will need to say he’s gone abroad , or fend off any letters to them by saying ” NOT KNOWN AT THIS ADDRESS ” . Tell your bank if your keeping the a/c open you are going and to not send statements etc as you have No fixed address ( abroad ) at this time .
Danilo says
Dear Sara , I am trap in a difficult situation. I got a unsecured Barclays loan of 12k , pay until February this year, but regarding of a family problem I move back to my country in Bulgaria , still have to pay around 10k . I can’t afford to pay the rest of the loan and I don’t think I will come back in uk .Can be enforced by collectors to pay in my country ? Which may be the best way to get rid of it?
Sara (Debt Camel) says
Hi Danilo,
You could wait and see if you are contacted or, if you want to know more about your options now, I suggest you talk to National Debtline – you can phone them from abroad, see https://www.nationaldebtline.org/EW/information/abroad/Pages/living-outside-the-uk.aspx
Danilo says
Hy Sara ,
Thank you for this quick answer, If I am currently outside of uk , but my uncle still lives on the same address, there is any way to apply for Debt Relief Orders DRO?
Sara (Debt Camel) says
You can apply for a DRO if you have lived in the UK in the last three years. See https://www.nationaldebtline.org/EW/factsheets/Pages/debtrelieforders/droadvice.aspx and talk to National Debtline if you want to know more about this.
Kris says
I owe £7000 in debt to pay loans, credit cards (Barclays,Lloyds, Capital One) and 1 overdraft from Lloyds.
I am struggling with crippling depression and really want to leave UK as my mental and physical health are deteriorating severely.
I can pay 3000 off, how likely are debtors to pursue me in EU for 4000 in debts, should I be worried about CCJ?
Sara (Debt Camel) says
are you up to date with these debts or have you missed some payments?
are you likely to return to the UK? if you are abroad, is it likely you will be able to make any payments to the debts?
Kris says
So far I made all payments on time.
Ideally I won’t be coming back to UK for 2-3 years and was hoping to be able to pay 200-300 per month from where I would live, paying each debt one at the time, but I worry what would happen if I could lose job here in UK and had to evacuate quickly without securing a job first. My mental health is very fragile and I want to be with my family as my depression deepens further the longer I am here. I do want to pay the debt off eventually.
Sara (Debt Camel) says
I think at the moment you are in an uncertain position. If you want to get home, then that has to be your top priority – you need money aside to let you do that and rent somewhere in your home country. You don’t want to offer that to creditors and leave yourself in a mess.
Are you currently trying to find a job at home? Would this be easier if you just leave the UK now and job hunt locally?
Kris says
I wouldn’t have to pay rent and living costs would be low as I would be living with my family. My main concern is them chasing me before I manage to find a job. Is the debt of around £4000 big enough to pursue me across the borders and seek CCJ?
Sara (Debt Camel) says
what are your monthly repayments at the moment?
Sarah says
Hi
Please help, how long will credit agy try and search/track me for debt
Cheers
Sara (Debt Camel) says
can you say some more about what this debt is, how large it is, how old it is, how long since you made a payment and what the rest of your debt situation is.
Kris says
Sara my total repayments are around 450 per month, but it’s not a question of payments.
I just want to go home to my family and leave UK. It has devastating toll on my mental well being and I feel worse every month.
The only thing worrying me is if creditors will start chasing me aggressively before I find a job back home…
Sara (Debt Camel) says
ok, but one option then might be to go home and not pay them £3000 but just carry on making the normal payments. Then there would be 6 months until the money ran out? Or to go home and offer them all 50% of the normal payments – you can afford that for a long while with your savings and then hopefully you can get a job and carry on paying that?
It is unlikely that you will be “chased aggressively” outside this country but I can’t say it’s impossible. Perhaps talking to National Dbetline on 0808 808 4000 about your options would help?
Sarah says
I am living in France and have UK credit card and loan debt with Lloyds bank. With Brexit and the closing of some bank accounts for non UK residents will they be able to chase me for this debt in 2021?
Sara (Debt Camel) says
Sorry but it’s hard to predict what will happen. You shouldn’t assume the debts will just go away though.
Md riyad says
On behalf my friend
Hi I lived UK 2009 till April 2013 . I had some due loan, credit card ( before I was Bangladeshi citizen lived in Uk student visa).
I went Bangladesh then I came to sweden September 2013 that’s why I couldn’t pay my loans. If I want to go UK want to stay there .Is it will be any problem for open new bank account in Uk .
Is it I have to pay that money??
Sara (Debt Camel) says
I can’t guess. It depends on 2 things
1) what has happened to these debts. Most of the may be statute barred by new – see https://debtcamel.co.uk/statute-barred-debt/. BUT if any of the creditors went for a CCJ, then the debts will never become statute barred. You could search on Trust Online To see if there is a CCJ against your frieNd at the address they were living at. You have to search separately for each address.
2) whether your friends old credit records will be linked to their new one if they just arrive and try to open an account with a bank they have never used before. I don’t know how likely this is.
Riyad says
Hi , thanks for reply, if he try to open online bank like manzo bank, is it will link with old credit file?
He is living sweden 7,5 years . Between that time didn’t visit UK .
Is it that’s all of debts will be increase with interest and some others fee?
Sara (Debt Camel) says
I don’t know how likely it is that he will be linked to his old records.
Credit cards and overdrafts are likely to have had interest/fees added for some period, I cannot guess how long.
Arain says
Hi Sara
Just a quick question re debt I have here in UK. Due to some unforeseen reasons I have to move abroad (possibly forever) and there is no way I could pay off everything which I owe here (credit cards, loan, catogue, mobile debt) before I relocate.
I have never missed a payment, never defaulted, never had any CCJ.
My question is what shall I do? What should I tell the banks before I move? I really don’t want no CCJs.
Look forward to hearing from you
Thanks
Dar
Sara (Debt Camel) says
How much do you owe? Where are you moving to? What is the chance of you being able to make some payments to these debts after you have Moved?
Stacey says
Hi,
I have been living abroad for 3 years (within EU) and since then I haven’t paid any of my Student Loan since then, I’m not looking to ever return to the UK but wondering If I am due to renew my UK Passport could they trace me via through the application process? (GOV.UK)
Sara (Debt Camel) says
I doubt it.
Stacey says
Why is that? Because I thought the Student Loan Company was part of the Government Scheme (not considered a private contract) so could they be able to trace me? or is it only if I return to work in the UK?
Sara (Debt Camel) says
I would be surprised if it happens as I don’t think the government is that joined up. You could ask National Debtline if they have any information on this – they can be contacted from abroad https://www.nationaldebtline.org/contact-us/
Deep says
Hi
I owe around 7to 8 thousand pounds on credit card in uk and now Parmanently moved to India now. Is my debt follow me in India or not?
Sara (Debt Camel) says
I don’t know anything specific about India – the general points are given in the article above.
George says
If I had borrowed a £20.000 loan in the uk and then moved abroad to Portugal, would this debt chase me ?
Sara (Debt Camel) says
As the article above explains, it’s not possible to give a yes or no answer to this question.
Jonas says
Hey Sarah, i would like to ask about my situation.
I had 4 credit cards in uk with around 10 000£ on each debt, totaling in 40 000. That was two years ago.
Since than i left UK to Eu country and im never coming back. My financies are much better now, i have beautifull house. But im scared they may find me here in Eu and take my home away. Do you think thats possible and how hard is to find person in another eu country?
I heard now since UK left Eu , they cant no longer make a European Payment Order or use the European Small Claims procedure to recover money you’re owed by someone in an EU country. So is that means im kind of safe? sorry, im very scared to loose my home. Thank you very much for your help Sarah
William says
Hi Jonas
I am in the same situation, have you ever been contacted ?
regards William
Mateo says
Hi, I have a debt to pay of £5000 to my university, but I can’t afford to pay that so I’m planning to move back to Italy and don’t come back to the uk, what will happen to my housemates if the debt collector goes to my actual address in the uk? And will they able to track me in Italy? Thanks.
Weatherman says
Hi Mateo
What is the debt for? Is it for accommodation, or tuition fees? If the debt is in your name *only*, nothing will happen to your housemates. If it’s in your name as well as theirs (e.g. if it’s for a joint tenancy and you’ve not been able to pay your share) then the university will be able to also chase them for the debt.
Either way, trying to outrun people you owe money to is a risky strategy. I would speak to a free debt advisor. Call National Debtline: 0808 808 4000
Jess says
Hello, if I have updated my address with a debt collection organisation after they registered the case with a court but 2 months before any judgement would the collection organisation be under any obligation to also update the court? I had no idea they had started any proceedings so received nothing. I found out about the debt agency via email and then updated my address. My updated address is outside the EU.
Sara (Debt Camel) says
So you have a case in progress? I suggest you talk to National Debtline, you can call them from abroad or use their webchat: https://www.nationaldebtline.org/contact-us/
worried_person says
Hi.I’ve been living in England for 16 years.I just discovered there r 4 CCJs in my name in my home country (Czechia). I wasn’t aware of them.A 16 years old debt which was in my name and supposed to be paid off by family-few payments missed and creditors took me to court.One of the bailiffs found me on Facebook and asked to contact them (to Czechia). I have a rare name so the bailiff must know it’s me.I ignored him but searched the CCJ register. The CCJs are from ’07, ’09, ’10 and ’15. The 4 CCJs are handled by 4 different bailiffs. The amounts:£2000, £3300, £300 and £800.The original debt was small (eg. debt just £200 and now they want £2000). Now that one of the bailiffs discovered where I live-what’s his chance of pursuing that old CCJ to UK?The amount he requests is £2000(original debt £200), CCJ from ’10. I’ve been a housewife/full-time mum since ’13. I have no income,just benefits for my kids.There’s a new law which will be valid from ’23 in Czechia-they’ll erase old CCJs if they weren’t able to collect the debt at all. That’s why I’m thinking leaving it as it is-if they’d erase my CCJs I’d try to contact the initial creditors and offer to pay the original debt at least. I just want to hear that they won’t chase me here for such small amounts.I’m devastated that my family lied to me; the loans were to provide money for them to get new home.My parents can’t pay it and didn’t pay/make any contact with the creditors since ’09.Shall I keep quiet?
Sara (Debt Camel) says
I am sorry but I have no idea.
If you are contacted (a message on Facebook doesn’t count) then I suggest you talk to National Debtline on 0808 808 4000 about your options.
You could call National Debtline now if you want, but there seems some chance you may never hear anything from them?
worried_person says
Thank you. I contacted National Debtline and they just told me that I have to sort it out with them in Czechia, there is nothing else they can advise. I read on internet many times that it is unlikely to pursue small debts to abroad due to the further costs associated but what actually is a “small debt?” £100? £1000? £2000 might not be much money here but it’s a lot of money in Czechia. It caused a lot of problems now between my husband and me, he is angry why didn’t I tell him but honestly I didn’t know until the bailiff contacted me and I started questioning my parent. I trusted my parents when they told me there is no debt left anywhere.
Sara (Debt Camel) says
I don’t have any experience of this. Waiting and seeing what happens may be best as it’s possible nothing will?
worried_person says
I think so. I found this information on many UK law-related websites: “Section 24(1) of the Limitation Act 1980 provides that an action to enforce a foreign judgment under the common law rules must be commenced within six years of the date on which the foreign judgment became enforceable.” I think after 6 years they cannot do anything now here in the UK after such a long time. I will confirm this with a lawyer. The debt will still stay in my home country of course, I know :/ . I wish I knew about the debt at that time and avoid this situation. Thank you and all the best
michail says
Hi.
I owe around 29k to two banks. I had a good job and good life but since separating with wife and kids my life has gone bad. My parents are abroad and they need me more then here in uk. I must come back as soon as possible. What are the chances that banks will find me in Latvia? If I go I will never return to the UK. I don’t know what to do. I’m stuck! Any other options? Bankruptcy? I have no assets in the uk.
Sarah Jane says
Hi
I was left with some credit card debts after my marriage broke down, I eventually made a payment arrangement with, I guess, a debt recovery agency. I have paid these via dd for years however at some point one has stopped taking the dd, I’ve gone back through my statements a few years but can’t trace when the last payment was. I never cancelled the dd
Will they pop up looking for it again or have I somehow fallen off their system? If this gets to 6 years am I covered by statute of limitations?
Sara (Debt Camel) says
I can’t really guess what will happen. As it sounds like there are several debts, it would be unwise to assume they will all just vanish…
If one pops up and you feel it has been more than 6 years, talk to National Debtline about whether the debt may be statute barred – NDL have a template for a letter you can send in that situation.
If it is less than 6 years, you could consider asking the debt collector to produce the CCA agreement for the debt, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/ which has a section called “All quiet about a debt? Then contacted?”
Sanju says
I still have to pay 3000 pounds to sky mobile for my iphone and ipad contract but moved to india as my uk visa expired. Will i be chased in india
Sara (Debt Camel) says
It sounds unlikely to me, but do contact National Debtline as the article above suggests as they may have more up to date information.
K says
I had significant debts 14 years ago including a large mortgage shortfall from around 2008 that I couldn’t afford to pay back. I don’t even know if I have ccj’s because I’ve been too frightened to check my credit records. I was then homeless/sofa surfing for a while before moving in with my new partner. Due to mental health problems and history of domestic violence I have remained hidden for a few more years. I hate hiding and want to be legitimate but I’m scared because I don’t know what will happen to me. I could afford to repay something now but I don’t know where to start. What will happen to me? What should I do?
Sara (Debt Camel) says
How large do you think these debts were?
How much do you think you could repay at the moment? Are you contributing to household bills?
K says
They were in excess of £50k. I could probably pay at least £500 pcm now maybe more. Yes I am now responsible for utilities and council tax
Sara (Debt Camel) says
Do you have a bank account at your current address?
K says
No I don’t. I do have an account but it’s still in my old address
Sara (Debt Camel) says
Ok so several points
1) any of these old debts that did not result in a CCJ is likely to be “statute barred” , to old to now get a CCJ. If you are Contacted by any creditor you first thought, unless they give details of the CCK, should be to say that the debt is statute barred. National Debtline has a template letter you can Use
2) if there was a CCJ and it is over 6 years old, it is very hard for the creditor to enforce it. Contact National Debtline on 0808 808 4000 for advice about this.
3) there is no way to easily find out what has happened to old debts. These should no longer be on your credit record ( but you can check, see below). You would have to contact all the original lenders and ask who they sold the debts to. Some may have been sold several times. The old lenders may no longer have the information as this is so old.
4) I don’t see why you should have to spend time and get stressed doing this. I do think coming out of hiding is a good idea though. Change your bank address to your current one. Then after a month or two, get some credit reports, also giving your old address. This will start to link things together.
5) then wait and see if anyone contacts you.
6) if there are a lot of CCJs ( which never become statute barred) including the big mortgage shortfall, think seriously about bankruptcy as an option. No reason to spend the the next 10 years paying these ancient debt. Again National Debtline can advise.
K says
Thank you. I appreciate you taking the time to respond. If I don’t want to go bankrupt do you think there would be a possibility they would agree to a low f&f settlement or if not accept IVA as alternative to bankruptcy?
Sara (Debt Camel) says
An IVA has NO advantages over bankruptcy if you have no assets to protect eg a house with equity. They are both forms of insolvency, they both have the same bad effect on your credit record, an IVA takes 5-6 years and you will pay more than in bankruptcy where you cannot pay for more than 3 years. IVAs also fail, eg if you lose your job, bankruptcy never does. An IVA also has to be approved by your creditors, in your case the mortgage shortfall creditor would be so large as to be able to veto it if they chose.
But for you the most important difference is that bankruptcy clears all your debts, even if they aren’t listed on the application. An IVA only binds the creditors listed. For you, with a lot of old debts you have lost track of, bankruptcy is massively the better option as it will take care of any debts that emerge later.
A settlement would depend on the offer. But if you can afford to pay 500 a month, many creditors may not take a low offer.
But this is all getting way too far ahead. You may never be contacted by any debts that aren’t statute barred!
K says
Thank you. The problem is we do now have a house due to inheritance, hence why I now have disposable income that I never had before. I guess I will just have to take one step at a time. I have been badly advised in the past, although accept ultimately the decisions I made are my responsibility – it’s just very overwhelming and frightening
Sara (Debt Camel) says
You have inherited this? Or your partner?