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Should I Get a Debt Relief Order Before I Move to America?

By on June 19, 2017

Question:

Dear Jon,

I have some debt, Credit cards Overdraft etc and I’m owning a car but I need the money to migrate to America with my partner soon as I won’t have an income for over 6 months in America and no employment. Is it possible to enter in a DRO before I move or after I move?

Andrew

Answer:

Andrew,

How much debt in total do you have?

How much is your car valued at? Is there any financing on the car?

Ideally you may wish to do a DRO (Debt Relief Order) prior to moving outside the UK, because if you are intending to leave the UK for a long period of time, it is just easier to do while you are here, than when you are away. In addition, there can be some issues and restrictions on doing a DRO depending on where you move and for how long.

You can do a DRO and travel, there are no restrictions, so no worries there.

The concern may be the value of the car. If it is worth more than the allowed maximum asset, which states £1,000, however, there can be some flexibility with this, it could be an issue.

If you sell the car and enter into a DRO, it can be questioned what have you done with the money, and failure to disclose the selling of an asset prior to declaring oneself insolvent, can be viewed as fraud.

It can get tricky at this point.

There is also nothing that says you cannot just move to America, as long as you have the proper documentation, Visa, etc, and leave your debts here in the UK. Your creditors may or may not chase you for payment there in the states, but unless they sell the debt on to an agency there in America, your creditors have no real authority there.

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Get back to me by posting in the comments below and we can look closer at this.

Regards,

Jon

About Jon Emge

Jon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques. If you have a question you’d like to ask about how to get out of UK debt, just use the online form.

2 Comments

  1. Andrew

    June 19, 2017 at 3:20 pm

    Question asked.

    • Jon

      June 19, 2017 at 3:21 pm

      Just answered your question.

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