Dealing with debt abroad

Can I move abroad if I have debts?

Yes.

There’s nothing stopping you from moving to another country even if you have debts in the UK.

But relocating doesn’t mean your debts just disappear.

The people or companies you owe money to - your creditors - can still take action to recover the debt.

Ignoring them can lead to:

• extra fees and charges
• a hit to your credit rating
• possible legal action (CCJs)

 So don’t just assume that your debts will go away if you leave the country.

What can creditors do to recover debts?

Your creditors can still contact you by email, letter or phone, even if you’ve left the UK.

And they might hire debt collectors in the country where you’re now living to chase the debt on their behalf.

Creditors may be able to get a county court judgment in the UK or take other legal steps to collect the money you owe.

But whether this can be enforced abroad depends on the laws of the country you’ve moved to and if there are international agreements in place.

Can I keep repaying debts at home after moving abroad?

Yes.

If you have any outstanding debts, it’s really important to keep up with payments if you can.

Most banks and creditors will allow online or international transfers.

And if you’re struggling, your creditors may agree to a more affordable repayment plan.

Should I settle my debts before moving overseas?

You should certainly try to pay off any outstanding debts before leaving the country if possible.

Start with priority debts - the ones that could have the most serious consequences if you don’t pay them.

Priority debts include:

• rent
• council tax
• energy bills
• court fines

What happens if I owe money in another country and move to the UK?

Debts from abroad don’t just disappear when you move to the UK and creditors in your previous country may still try to recover the money you owe.

For example, they may:

• contact you directly by phone, email or post
• hire a UK-based debt collection agency
• apply to a UK court to enforce the debt

The steps your creditors are able to take depend on where they are based and the type of debt.

Many countries have agreements with the UK that help them collect debts here.

What happens if I ignore my debts from abroad?

Ignoring debts from abroad can have similar consequences to ignoring a debt in the UK.

For example, interest and charges may be added to your debt.

You might also face pressure from international or UK-based debt collection agencies and, depending on the circumstances, you could face legal action and bankruptcy in the country where you built up the debt.

Action could also be taken against assets or property in that country.

How do I manage overseas debts from the UK?

If you’ve moved to the UK and still have debts outstanding in your previous country, it’s a good idea to stay in contact with your creditors.

Explain your situation, discuss repayment options and, if you’re in a position to do so, set up international payments.