Many UK residents relocate and some of them move outside the region. If they are in debt, they often wonder whether the burden will follow them across regional borders. In most cases, creditors will not take action against a debtor relocating outside of the UK until the individual moves back to the region. However, if the debtor maintains assets within the UK, these may need to be liquidated if a creditor obtains a County Court Judgment (CCJ) against the individual for a debt.
Most creditors make all possible efforts to get repaid. If an individual moves outside of the UK, the creditor may retain an international collection agency to find him or her and recoup payment. However, many creditors do not believe this is worth the effort or expense so they make a claim against the debtor in county court. Since the debtor will most likely not be present, a CCJ will typically be issued.
The CCJ states that the individual must repay the debt. A bailiff will be retained to assist with debt collection. If the debtor has salable assets within the UK, the bailiff is permitted to seize those and liquidate them to repay the debt. If there are no assets for the bailiff to seize, a note is placed on the warrant that the debtor left the UK address with no assets left behind and the warrant is returned to the creditor.
Many former UK residents attempt to run from their debts, never realizing that these balances can follow them. If an individual owes a substantial amount of money, a creditor may pursue action within the court of the new country of residence. Under the Foreign Process Section of the Royal Courts of Justice, it can request that a summons be served to the debtor to appear in court. However, the cost and effort typically prevent creditors from doing this.
Some people reside outside the UK for so long that they forget they have UK debts. When they return to the region, creditors discover the new address and resume collection action as if they had never stopped. This leaves many people baffled because the debt was removed from their credit report after six years so they assume it was written off. However, the debt remains and must still be repaid.
Creditors can pursue a debtor for an indefinite period to recoup a debt. Therefore, the best approach is to establish repayment agreements before leaving the UK. People have many debt management options even if they no longer reside in the region. A debt management plan, debt consolidation loan, Individual Voluntary Arrangement, and bankruptcy are several examples.
Debt management professionals can advise debtors on the best course of action prior to relocating. Taking care of this situation prevents credit issues from following the individual to the new residence. To prevent themselves from having to look over their shoulders or face a worse situation upon moving back to the UK, people should handle their debt issues in a timely manner.