Can My American Debts Be Collected In England?

Question

Jon,

I am a British citizen living in America and have lived here for 10 years. In that time I have accumulated a bit of debt, close to $20,000 USD. I am thinking of moving back to England as I am getting older and want a slower pace of life. I cannot pay off the accounts I owe in full before I move, and once back in England, it may be a while before I find suitable work, if I find work at all. I am nearing the pension age.

Liam,

The quick answer here is that US based banks and creditors have no real authority to collect a US based debt in the UK. This does not mean they won’t try to collect it.

And all this can change if the creditor(s) assign or sell the debt to a UK collection company. If the accounts are assigned or sold to a UK based collection firm, they can be collected here in the UK, but must be collected in accord with the rules and laws here in the UK.

You then are also afforded all the debt management plans and insolvency options here in the UK to deal with the accounts.

You could even include the US debts in a UK bankruptcy or DRO/Debt Relief Order, and discharge the debts in the UK. That does not give you protection in the US, but only here in the UK.

I hope this helps explain things. If you have any additional questions, just ask.

Regards,

Jon

My question is this, if I just move back to the UK, can the US loan companies and banks chase me for payment? Can they collect the US accounts in the UK?

Any advice is appreciated.

Liam

Answer

Liam,

The quick answer here is that US based banks and creditors have no real authority to collect a US based debt in the UK. This does not mean they won’t try to collect it.

And all this can change if the creditor(s) assign or sell the debt to a UK collection company. If the accounts are assigned or sold to a UK based collection firm, they can be collected here in the UK, but must be collected in accord with the rules and laws here in the UK.

You then are also afforded all the debt management plans and insolvency options here in the UK to deal with the accounts.

You could even include the US debts in a UK bankruptcy or DRO/Debt Relief Order, and discharge the debts in the UK. That does not give you protection in the US, but only here in the UK.

I hope this helps explain things. If you have any additional questions, just ask.

Regards,

Jon