Going Bankrupt from Abroad or Having Debts in Different Countries

Published January 11, 2018

LONDON – There are so many questions to be answered about having debts in UK. What will it happen if you have debts in the UK and then move to a different country? Will they affect you abroad or not? What happens if you get back in the UK? What about the accounts you owe if you move abroad?

It’s all very complicated, but we have the answers. Well, at least a part of them, since every country has a different law on collecting debts.

The debts could be collected even though you move from the UK. If, for example, you moved to Australia, the collectors don’t have authority in Australia, so they can’t collect your debt. But they can make you bankrupt in the UK, and as soon as you buy a property, they will take it in the bankruptcy, no matter its location.

Your Debts Can Be Sold

The bank you owe money to can sell your debts to a different collector, so, one day, you might get a phone call from a different collector.

It is quite confusing, especially when you get debts in other countries. If you move from the UK to America, the bank might sell your debts to an American collection firm, so you will be chased in order to pay, according to the law.

Of course, it’s not as harsh as it’s in Dubai, where if you don’t pay your debts, you can go to jail.

Going Bankrupt in the UK from Abroad

You can go bankrupt in the UK from a different country, depending on the country you have moved to and how much time you spent there. If you move to a EU country in three months’ time since you left the UK, you can go bankrupt back in the UK. After those three months, you will need to go bankrupt in that new country you live – some EU countries have harsher bankruptcy laws, while others don’t have an actual form.

What Will It Happen If I Leave Unpaid Debts?

A we already mentioned, the bank might sell your debts to a collector from the country you moved. Coming back to the UK while still being in debt will not have you detained, stopped or questioned, if you are a citizen of the UK. Leaving behind debt or unpaid bills is not a crime. The same goes for non-UK citizens.

As for other countries, most of them don’t have an issue with you leaving behind debts and then coming back in that country.

Of course, the best and the safest way is stay out of debt, wherever the place you want to live.

Do you want to know more about debts and what happens if you cannot pay them?

Check out the original article here to find out more about debts in different countries and see what could happen if you have debts abroad.  Thanks to www.buddyloans.com for this article.


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