UK debt but living abroad. What can debt collection agency do?

Question

Hi,

I have some debts in the UK. I am now living in the U.S.

I am going to be applying for an IVA as soon as I have a job (which hopefully won't be too long!), but in the meantime, I've got a letter from one of my creditors explaining that they've passed my debt to a debt collection agent.

I do not intend to run from this; as I said I am going to apply for an IVA and come to a formal agreement. But in the meantime, what can they do? At the worst case, do they have powers to extradite me? I don't even want them to be able to "sell" the debt to a local agency here in the U.S. because that would then mean my IVA probably wouldn't cover it (I assume) and I'd end up with debts over here too.

Help!

Thanks,

Simon.

Simon Finnigan · Accepted Answer

Do you not feel that an IVA IS running from your debt? Presumably you got the money and spent it - if you want to pay it back, then pay it all back. Don`t delude yourself into thinking that going down the IVA route is anything other than refusing to honour your commitments.

Are you sure that you can get an IVA while living and working in another country? have you looked into this?

james.m.reed · Answer

It is not going to be possible for me to honour all the debts. They are too high and my income would never cover the repayments. That's a mathematical certainty. The IVA is merely a way of paying it (or some of it) back, and keep it realistic. I'm just trying to find out in the meantime what the immediate possibilities are.

Simon · Answer

My income would not allow me to pay it all back. Unfortunately that's just not an option. The IVA is a balance between paying it (or some of it) back, and keeping it practical.

I'm just trying to find out what my immediate concerns are.

Anthony R. Gold · Answer

Not unless you have committed a crime (and in practical terms it would also have to be a major one such as a massive fraud, homicide, terrorism, bank robbery, etc.). Merely being in debt and insolvent is not a crime.

Tony

UK debt but living abroad. What can debt collection agency do?

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