The option of doing nothing or running away.
Do nothing, yes do nothing; don’t pay the debts and see what may or may not happen.
In explaining people their options with their debts, one option I do offer to some clients is the option of doing nothing.
Now this is not a good option for many people, but it is an option just the same.
You can no longer service your debts, either you have lost your employment, or things have gotten too far out of control and it is all you can do to pay your priority living expenses.
You can look at going bankrupt, and there is also doing nothing.
Bankruptcy gives you closure, it cures and resolves the debts.
Doing nothing leaves things hanging in the air, looming out there.
But again, it is an option.
I spoke with a gentleman the other day who had chosen to just do nothing. He did not want to pay the fees associated with going bankrupt, he wanted to take what money he had and move to another country and start over again.
Now he can do this, but his debts could be sold to a collection agency in the country he has chosen to move to and then they will chase him there.
But there is the possibility his creditors will not chase him and he may never hear from them again.
Of course he still owes the debts until the statute time passes and they may come back to him at some point, but he felt confident in his decision to do a ‘runner’ and be done with it that way.
And yes, he and you can do this. But again, not always a good decision to make when bankruptcy will resolve these matters for you and allow you a fresh start without anything looming out there.
Just another option to consider
Then there also is the option of running away, doing a runner.
I have commented and written on this subject before, however I seem to be getting a few more queries regarding it lately, which has prompted me to say a bit more on the subject.
A few people have asked me can they travel, leave the UK and not go bankrupt and not pay their debts; that actually is up to them, but yes, they can.
To my knowledge there are no travel restrictions just because you are in debt, and there are none if you are bankrupt.
If you are immigrating to another country, they may have something in their point system for immigration, if they use a point based system, that may address if you are solvent or not. You would need to inquire with immigration regarding this.
So yes, you can leave the UK and your debts behind, but are they really left behind?
Not really; a creditor may or may not pursue/chase you for the debt and payments. It will be up to the creditor.
Of course what actions they can take against you in some other country I cannot say, but they may make you bankrupt in the UK, and if they do this, any assets you have in any other country will be affected.
As for how the Official Receiver would gain access to these assets can depend on what country the asset is in.
I received this information when I queried it with the Insolvency Service:
Any asset in any part of the world would be classed as an asset in a bankruptcy in England and Wales. There is now widespread co-operation in many countries in the world between courts exercising jurisdiction in relation to insolvency, including all EU countries. This means that the OR or trustee in bankruptcy would be able to sell property abroad that is owned by the bankrupt.
Any asset in any part of the world falls into your bankruptcy estate. However, the trustee may encounter problems selling foreign assets if he is not ‘recognised’ in a foreign jurisdiction as having the power to sell them. The trustee may require co-operation from you and also, he may need to apply for a court order in the foreign country to deal with the asset.
There also is the issue if the debt is sold to a collection agency in the country where you have now gone to reside.
At that point the collection agency can collect the debt in accord with the rules and regulations of that country.
For some countries those laws may be harsher than what would have occurred in the UK.
There also is the possibility of a collector showing up on your doorstep in the new country you are in, which could make for quite a shock.
Of course the decision to ‘run’ or not is yours to make, just be aware of the implications.
Also, if you have no assets, you could consider bankruptcy as a way to resolve the debts and get closure prior to leaving the UK.
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