If you’re in debt, especially very heavily in debt to a number of creditors, you will be very familiar with the feeling of wanting to run away from it all, go to another country and forget all about the money that you owe. In fact, you won’t be alone in this dream, and there are people out there who have done exactly that; fled their home to set up a new life in another country, and start all over again. While debt isn’t always the reason that people move abroad, and while there may be perfectly legitimate reasons for someone moving abroad and forgetting to inform their creditors of their change of address and circumstances, this isn’t true for everyone, and more importantly, this tactic doesn’t work.
Will They Find Me?
This is the question that many expats ask themselves before and after they move house, and there is no single answer, as it depends on a number of factors, such as the size of the debt, the creditor themselves and how many creditors you owe money to. It also depends on the type of debt, such as whether it secured, such as a debt on a house or land, an unsecured debt is the debt accrued from credit cards, a cash advance, overdrafts and personal loans. It’s up to the creditor how they pursue you, but unless you’ve left a forwarding address, they will find it very difficult to track you down. However, if they do, they are well within their rights to issue you with a County Court Judgement, which are not statute barred, meaning that they don’t fall under the 6 statute of limitations.
Will Moving Rid Me of My Debt?
The blunt answer is no, loving abroad will not magically wipe your debts and your credit history clean. If you leave the country, and therefore default on your payments, this will be recorded on your credit rating, and defaults like this can be very damaging if you ever wish to buy a house, or take out another credit card.
Returning Home
Expats who left the country with debt are frightened to return home even just to visit friends and family will result in them being arrested upon arrival. The good news is many countries don’t arrest expats for non-payment of unsecured debt, such as personal loans. Remember that personal debt is not a recordable offense, and it’s very unlikely to be the knowledge of the Immigration Service.
Leaving behind debts will only make things more difficult for you in the long run, so if you have to emigrate, make sure your creditors have your new address, or arrange to make repayments from your new bank account.