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Guest The Westons

Cant sell our house - leaving debts behind

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Guest The Westons

We are due to emigrate within the next two months as hubby has hopefully got a job but we cant sell our house and have loans that will therefore not be repaid - where do we stand and what should we do. Plenty of people are just saying lock up the house and just go - let the banks etc sort it after we have gone but i am worried about taking this drastic step.

 

Any advice is welcome.:wacko:

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Guest jojaks

Hi

 

The rumour is , They cant chase you for bad debt, you get black listed in the UK for 7 years then its wiped.

 

Thats the rumour. i dont know if its true or not and obviously its moraly wrong to do that to the Banks in this country after all they have have never done anything which has left us in trouble have they !!! errrrr ...................... hmmm.

 

Its your choice , but you are kind of burning bridges with the UK and no ones knows whats round the corner.

 

(that should get some of the POIers up on their soap boxes anyway)

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Guest Esme

I've worked in collections and banking for a long time before midwifery and NO the banks can't chase you for the money, if you do come back to the UK they'll just chase you for the money again and you can deal with it then. It's totally your choice what you do, probably wouldn't post it but do whats right for you not whats right in the eyes of others! Best of luck with your new life x x x

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Guest The Ropey HOFF

Please lets have no judgements.

 

If you can't offer any help or advice, ignore this thread.

 

Me personally i wouldn't want to leave owing debts because there has been others on PIO who have done the same and had to come back to the uk and it turns out really messy. My advice is contact the loans lenders and the mortgage lenders and ask them to help............ at least you will be trying to do the right thing.

 

Best of luck.

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Hi I don't know the legalities of doing this, but think very very carefully just leaving the house and everything behind. You never how things will work out, and you may (as many others have done) want to return to the UK and could quite easily end up in one hell of a pickle!

Imagine you hate oz, won't be able to get another loan/mortgage whatever in UK because of bad credit rating etc and miss family terribly but can't go back for fear of being chased by debt collectors etc. Like I say I don't know what would happen in reality but I sure wouldn't want to live with that hanging over my head. I don't know what would happen with your current mortgage as well if you just did a runner...

Could you rent the house out, if so would this cover the cost of the mortgage?


Due to escalating bills and budgetary cuts in the NHS, unfortunately, the light at the end of the tunnel has had to be switched off.

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Guest Esme

I don't know how bad your situation is but have you looked into bankrupcy? Obviously you need to take professional advice, citizens advice if free and are very helpful or goverment helpsites! People get into difficulties and sometimes for the sake of the mental and physical health, the option of a fresh start is the only way out, i do get very annoyed with people that sit and judge, i've had to deal with some heartbreaking situations and wouldn't wish the stress and illhealth due to debts on anyone!

 

If you are unable to sell the house or renting isnt an option, the bank will reposses and then TRY to claim the diffence and costs back! They can do this for i think upto 12 years!

 

With regard to the debts the ball is in your court! You could speak to the companies and offer a payment that is within your means, these payments can be transfered from abroad. The debt companies/banks know they have alot to loose and will negotiate with you on payments but dont be bullied into paying what you cant afford! If you have some money that you can split between creditors then call them up and tell them this is what i can offer and you'd like a final settlement!

 

If things are so bad and you need to leave it all behind and move to Oz, you'll start with a clean slate over there, they do not look at credit files from this country. Take care x

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Guest Alexxxxx

Hi,

 

I'm in a similar situation but now looking at renting rather than leaving it behind.. well we're hoping we can rent it in time.. otherwise I don't know what we're going to do either!!

 

After doing some research (and I don't know how 100% accurate this is) I read somewhere that depending on the amount of debt.. if it's LOADS then they can chase you abroad. It'll cost them a load of money to do it but if it's a ridiculous amount owed then it would be worth it for them. They apparently can get a court order here that you have to pay, and if they find out what country you are in then they can get the courts in that country to enforce it there as well. I found it somewhere on google but like I said I don't know how accurate that is.

 

I used to work in collections as well and didn't think that was the case but I only dealt with amounts for around £20-30k so I don't know what the situation is for higher amounts.

 

Good luck!

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Just walking away will not solve your problems.

 

If your outstanding loans are secured on your property then at some point your house will be repossessed and sold at a substantial discount of up to 30%.!

 

So if your current outstanding loans are a payable 10k by the time your house is repossessed

It could inflate to over 50k in the space of a couple of years.

 

At least that is what happened in the 1990,s to peaple who thought they could walk away from their debts.

 

You need professional advice as to the best way to sort your financial problems.

.


You can ignore reality but you cannot ignore the consequences of ignoring reality

 

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Most people who leave the UK for Australia thinks they are leaving for good and that they are heading for this wonderful new life etc etc. I am not sure what the statistics are but a high percentage of these people head back to the UK after being unable to settle. You may say - "Oh well that won't be me" but that's what everyone thinks. I have been here long enough to see the people I thought most likely to stay, upsticks and head back. You can just never tell.

 

Maybe your debts can't follow you to Australia - maybe they can - the jury just can't seem to decide on this one. BUT, you can bet that if you head back to the UK within 7 year they will catch up with you.

 

I would not leave your debts unpaid. I would make arrangements with the relevant organisations or a debt consolidation group to repay your loans from Australia.

 

Rudi


 

 

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It's not nec. the 6 years that it is on your credit file - once you default on a debt, it continues to show as a default each month, meaning it doesn't drop off your record, as its still a current and owed debt. If the company then file for a CCJ for the debt, and this is unpaid, in a way this is better as it will stop rolling over every month. However both Bankruptcy and CCJs are something that you legally have to declare on credit applications in the UK, even when 'spent' as it were (to not do so when asked is commiting fraud).

 

IMHO and from my experience, if you are thinking you aren't able to clear the debt rather than just leaving it, file for bankruptcy. It will tie up all loose ends and will (if the companies aren't complete idiots (unfortunately a lot are though)) mean that it all drops off after 6 years automatically. You will have to declare it always on big applications should you come back, but with more and more people declaring nowadays it is not the complete barrier to finance it once was. (I speak as someone who had to go bankrupt a while back now for very long and boring reasons so am very well versed with the ins and outs of it and the real life implications it brings).

 

If you do come back, in reality you will probably have to do some clean up with Bankruptcy still, as most companies don't play by the rules, however its a system of writing a couple of letters to standard templates, and it will get sorted sooner or later - and with the law on your side.

 

If you don't come back, you still have a clean mind to not bug you once in Australia.


Moved on a 179 PR visa Feb 2012; Citizenship granted Jan 2016. Settled in Adelaide. Loving it and feel like everyday is paradise compared to life in the UK.

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Do your loans exceed what your house is worth ?

It sounds like that is the case, but you didn't say it explicitly.

 

The question to ask your self is, would reducing your asking price on the house to a point where it would sell, and then negotiating with the bank a payment plan for any leftovers be better for you than letting the bank take control and do a similar action.

 

My thoughts would be it would be better for you to take control of the situation if you can.

 

Also, have you considered renting it out ?


I want it all, and I want it now.

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I know a couple of people who've locked the house and just got on the plane, or walked away from lots of debt.

They don't get chased in Aus but I suspect they will if they ever return to the UK where, by then, the debts will be much bigger.

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For your peice of mind i would consult the nation dept helpline and ask for advice. i would not be able to sleep at night knowing i had not sorted things out or at least tried. The choice is your at the end of the day and you have to live with it. Do what is right for you and your family. Good luck.

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Remember all the advice given here as if you start a new life in Oz its going to be slightly clouded by the knowledge you have left a bad situation behind you... then if Oz is not for you what then? You return to UK in very bad situation. I would suggest you seek professional advice and perhaps look at bankruptcy as an option. Bankcrupcy is not as bad as most people think as my x husband went through it and now has a new business and all is going well for him. Dont look at this situation threw rose tinted specs as that could be dangerous for you. Be calm and and speak to lots of professionals that would be my advice.

 

Good luck with it all


Lobeany ... crazy girl nearly in Oz :wink:

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Guest The Westons

Thanks to all for the comments - the house sale will leave us in negative equity and we have about £35k in other loans etc so even if the bank repossess the house there will still be debts left to pay off. I am currently pregnant so will only be Phil working for a while when we get to Oz so repaying from there doesn't seem possible. i will contact the CAB and look into bankrupcy. Thanks again.

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Guest Andy

You would be doing the right thing trying to get it sorted. I think you would be mad to just shut the door and leave, negative equity on top of £35k could turn into well over 100k in a few years and then you would never be able to return.

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Guest MADTOM

We have a house we can't sell and CC bills and debts. We are in the process of trying to rent the house. We have given everyone our current address and are paying the debts, mortgage, bills etc each month as normal. It means we have little to live on this end but we are paying off the debts and hopefully will be able to rent out the house.

IMP pay what you owe just running away to start a new life leaving behind bad debts will tarnish your life in OZ and if you do return things may well catch up with you!

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Sorry if this sounds harsh but running away and leaving debts seems childish and stupid to me. You borrowed the money so pay it back, if you can't afford to then there are ways to deal with it (bankrupcy, negotiating with lenders etc).

 

I'm sorry but I'm a big believer in paying back what you owe, the buy now pay later aspect if modern society is a big problem IMO

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Guest Bobby

Locking the door and just leaving debts behind is tottaly wrong IMO they can and do track people who have gone abroad and you will always be worried of a knock on the door or a letter coming your way, try and sort it out before you go or it will be a massive worry for years to come.

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If you are in so much debt already how can you afford to move to Australia? It costs a lot of money

 

Are you just going to add more on to what you already owe?

 

Also, if you have got into so much debt in Uk would you do the same here? Then you would be in the same mess in both countries

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Guest tandcmum

I think we have to be careful here not to judge the OP as to why they are in debt and how they can justify moving to Oz, that is not for us to say, people end up in debt for lots of reasons and it's not always just overspending. I'm sure i read somewhere once that statistically people end up debt cos of unfortunate changs in circumstances such as illness, job losses etc. Perhaps the OP has been made redundant and tried to find new work and can do so in Oz but not in the UK, perhaps he is having to move cos his current job is moving

 

However the main point to make is, it is basically wrong to just lock up and walk away and is not the best start to a new life down under, however we know people do it

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Guest guest37336

Hi Westons.

 

Trouble is with this sort of thread you are always going to get conflicting ideas, and fair play. Not being one to judge because I don't know your particular circumstances I will say this.

 

I have very little time for the banks, having been stung by them before I have very little sympathy with these institutions, BUT.

 

It is purely down to you how you act with this situation, so here goes.

 

1. Conscience. Can you with hand on heart say that it wouldn't trouble you in the future if you 'walked away'. I couldn't give a flying fig about the banks, but I would hate for you to make the move to OZ and be plagued with regrets.

 

2. Return To UK. There 'may' be a time when you return to the UK, we all 'think' that a return to a country we once left is ridiculous in the extreme, but many do, could you cope with the constant letters and demands from a bank that though many years have passed will still chase you for the money? The last thing you need is this worry whilst trying again to settle in the UK.

 

3. 'Laying Off The Debt'. Banks will ALWAYS recoup their money in some way. No matter what they say and defaults on debts etc ARE recovered. And they do this by penalising other account holders, i.e., higher interest rate charges, etc. Can you with hand on heart say that this will not bother you?

 

As I said Westons, there are many tangibles and some intangibles as well. I am NOT judging, just I hope showing you the possible affects of any action you take, it is I dare say a very worrying time for you, and I hope any decision you come to in the future will enable you to carry on with your life, good luck in the future.

 

Edited to Add:

 

My best advice would be to talk to them and tell them what the situation is. Banks will try to bully you into submission, don't let them. Make your point, and DO NOT let them put you in a position where repayment options etc suit them and no one else, talk to them and make sure any repayment scheme is MANAGEABLE for YOU.

 

Cheers Tony.

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Not really sure why we blame the bank for our troubles.

 

All of us have entered into a loan contract willingly. No one put a gun to our heads. We signed a contract, and know we will pay interest and fees. The bank didn't coerce us into borrowing from them.

 

So absolutely agree, it is the right and moral thing to do to pay back our borrowings.

 

If the boot was on the other foot, if you lent someone a sum of money and they ran away and didn't pay you back, you would be mightily pissed.

 

Westons. I'm not directing this comment to you so please don't take offence. I'm aiming it at the posters who seem to think the banks are the bad guys for lending us money when we asked them too.


I want it all, and I want it now.

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Guest UFO

I see two options for you:

 

 

  1. Sell the house at an Auction(you will take a lose but its gone) Then any outstanding debt wipeout by arrange repayment plan or declaring bankrupt.
  2. Rent the house, and at later date sell the house. then all the other outstanding dept wipeout by declaring bankrupt.

you have to sort this out due your Karma, and you dont want bad Karma on your fresh start.

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Do what you can live with


"The problem with neo conservative capitalism and it's insatiable greed for more wealth and disparity amongst the populace,is that it ended up being the catalyst for the great depression and modern recession"

 

Me,tonight:wubclub:

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