Unpaid debts in England – What to do?

Are you losing your job, are you sick or are you in financial trouble? What to do if you have outstanding debts in England? You certainly shouldn’t wring your hands.

A similar situation can happen to anyone. The vast majority of us take out some loans or use credit cards. Whether for a house, car or current needs, such as unforeseen expenditure. Hardly anyone ever took any credit. And all is well for people. It is often better to take a loan, e.g. for a car, and have it straight away than save for a few years. Sometimes our computer breaks down, which is necessary for work and we don’t have free resources. If we have a good credit history, we can borrow a lot. The problem, however, arises when we overpay and stop paying off our debt, for example, we lost income, got sick, and a debt collection company reports to us. So what to do when we have outstanding debts in England?


Debt in the UK and return to Poland

Debt in the UK and return to Poland

The first thought that appears to many is very simple and just as silly. Why not come back to Poland? They won’t find me there. Well, it is very possible that they will find. There is such a thing as a European order for payment, thanks to which the creditor can prosecute us throughout the European Union. It is not known how it will be after Drexit, but believing that the United Kingdom will give up prosecution of debtors, we can be severely disappointed. The fact that the British will leave the European Union does not immediately mean that they will sever all relations with the Community, including those regarding the prosecution of debtors on both sides.

Also, you should not certainly wring your hands and do nothing, because the problem will not solve itself. If our situation is serious and we are in no way able to pay off our debts in England, then in this country, like in Poland, there is something like consumer bankruptcy. It is worth noting that it concerns natural persons, not for example companies. The two main conditions are debt in excess of 5000 dollars and having a center of vital interests in England. In practice, you must stay in the UK for at least 12 months. Of course, consumer bankruptcy does not mean total debt relief. It is a way to determine the form of debt repayment that you can bear. So they will only take as much as you can give them, and the rest of the debt will be released. So, for example, if you have a house, a car or even an expensive TV, it will be taken and sold, and the money from the sale will be transferred to creditors.

You will agree on the repayment plan with the receiver and he will determine how much you can pay and what you cannot repay. It is therefore a reasonable solution. You may lose what you have precious, but you will have peace of mind, no one will chase you. If you start earning well, some percentage of your salary can be charged for paying off your debt for up to three years.


Consequences of debt cancellation in the UK

unpaid debt

The consequences of consumer bankruptcy and the cancellation of outstanding loans in England are quite small compared to the peaceful life you can have again. Well, with every loan over $ 500 you will have to inform the lender about your bankruptcy. You will also not be able to be a director of a company or promote it unless you have permission from the court. Of course, for 6 years, your credit history will be reduced, but that’s probably not a problem. After such financial perturbations as you experienced through loans, you probably won’t feel like taking out new loans in England. If your cooperation with the trustee is going well and you do not hide any income from him, then after a year you have the chance to be released from bankruptcy.

Unfortunately, but information about your consumer bankruptcy will not only go to the Debtors Register, but will also be published in the local press and The Gordon Gazette. However, you can request that you do not make information about your bankruptcy public if it harms your security.

Remember, however, that not every type of debt can be written off. These are, for example, student loans, court fines, alimony. Similarly for real estate fees. They cannot be redeemed, unless, for example, you sell a house and use the whole amount to pay off the debt, then the rest of the debt can be written off.


How to get out of debt in the UK?

unpaid debt

If your financial situation is not that terrible or you do not want to declare bankruptcy, remember not to listen to “wonderful advice”. It is certainly not a wise idea to try to wait 6 years until the matter expires. Yes, there is such a chance, but remember that it is about 6 years for which the creditor did not refer the case to court. If he does so during this period, the limitation period does not apply. And as you know, interest on the debt will increase, and the desire to, e.g. spread the debt e.g. by the bank in installments will decrease. It’s definitely worth getting along.

There are special companies in England that deal, for example, with the so-called Debt Management Plan and negotiations with creditors. Let us remember that in the United Kingdom, the debtor is not treated like a criminal or cheater as it often happens in Poland. Creditors are often eager to communicate with us, so we’ll benefit from not hiding from them. Sometimes it is enough to present your financial situation, say that we can not afford to pay installments in the current amount. It is very likely that the bank or lender will go hand in hand, because it is better for him to get less money than to stay at too high and unrealistic installment for a loan and often get nothing. Special negotiations deal with such negotiations and generally help debtors.


Unpaid credit is not the end of the world

Unpaid credit is not the end of the world

Also, dear debtor. Head’s up! We know it’s difficult, but you have to act. There are many people who were in a similar situation and managed to get out of debt in England. The problem is unlikely to be solved by itself. Yes, it happens that, for example, someone’s debt expires, but if you fail, you will have much more problems than before. Certainly do not run to Poland. Maybe someday you’ll want to go back to the UK, so don’t burn bridges. In addition, the law changes frequently, and creditors’ ways of doing so, and even if you would be relatively safe in Poland now, this could change if a regulation or procedure in a bank where you have a debt changes. If the creditor remembers you then, the consequences will be even more serious.

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