Question
Debts around 25k.
Moving abroad for job paying less than UK job in August, already served notice in UK.
Reason for this is various unstable mental health, want to be closer to my family.
Lived in UK for last 8 years, British citizenship obtained.
With my job abroad my earnings will just equal allowed expenditure-will be living and working in capital- rent on its own will be around £800, with additional gas&electricity etc £1050, £200 for food, £20 for public transport, and another £200 food for cat, food, fuel, gym, hairdresser, insurance, mobile phone, TV, etc…
My income will be around £1550.
Shall I wait to apply for DRO once I am abroad or shall I do it now? At this moment I only have estimates on expected spendings.
Shall I inform creditors in advance?
I have already opened safe account for my last salary as I will need money for relocation, flight ticket, etc.I won’t be able to make any payments from July, at this moment I am on time with all my payments.
Is there anything else I need to be mindful to ensure I don’t put myself into any troubles?
I hope doing this isn’t classified is any sort of crime or offence.
Katerina
Answer
Katerina,
There is nothing stopping you from applying for a DRO/Debt Relief Order now while you are living in the UK. However, being in arrears is usually when most people file.
The only issue may be once you move there may be a follow-up as to what your expenses are in the country you are now living in, only due to the fact for a DRO you can only have a minimal surplus of income.
If you have documentation as to what your rent will be, and all other bills, that will aid you in showing what your income and expenses will be.
If you were to wait to move and then file for a DRO, there may be issues as you are outside the UK. You did not mention where you were moving to. In some instances there can be a small window of time from outside the UK to file insolvency proceedings.
There also is the option of contacting your creditors, seeing what options they have, and making token payments for a period of time, but only if you feel your finances will improve. But you can make token payments for quite a long period of time.
Being in debt and leaving the UK is not a crime, and it will not affect you returning to the UK.
Let me know what you decide, and we can discuss this in more detail.
Regards,
Jon
I answered your question regarding a DRO.
Hi,
I answered your question, if you have any additional questions, just let me know.
Regards,
Jon
Hello Jon,
Thank you. I am moving to Czech Republic-basically back home. I will be around -£150 per month which my family offered to support me during next 12-15 months.
At this moment, I am planning to sent letter to all my creditors about entering financially difficult times- being without job without mentioning about my moving out.
Once I will be ready to leave country I will do a second letter about obtaining debt advice and filing for DRO and ask them to freeze accounts for 60 days. By then I will have (hopefully) everything sorted- flat, job, budgeting and first bank statement confirming all incomings and outgoings.
I have question on this- will creditors be given my contact details in Czech or they will only be provided information about DRO? I am worried as some of them are multinational companies- like PayPal, Klarna and also operating in Czech that they might try to recover debt there. I will still have a contactable address in UK where I would prefer all correspondence to go and also I will retain my UK number during DRO.
Are you also able to guide for expenses allowances, please? I tried to look online, but numbers really vary.
Thank you again.
Kat
Kat,
The Receiver handling your DRO will want contact details for you, as to if they are OK with just an email address, I cannot say.
As to expense guidelines, there may be some online, I know the Citizens Advice Bureau had allowances posted, but you just need to use your real monthly expenses. If an expense seems overly high, they will let you know. But it needs to be what it cost you to live.
Regards,
Jon