I need your advice, I have been working in the UK for 3 years , then moved back to my home country in the EU , where I have my own house., without any mortgage. I have left about 10.000 pound of debt behind me in the UK.
I am just wondering if I am going to put my house in risk , because I can not afford continue my payment to the UK banks.?
I understand your concerns and there are some genuine issues here to be wary of.
What EU country did you move back to?
Why can you no longer afford the debts in the UK?
What is your house worth in today’s market?
In the UK, as it is a part of the EU, there are some reciprocity issues with insolvency in the UK and having assets in the EU.
There are two course of actions we need to look at. The first is if a creditor in the UK decides to chase you for payment in the EU/country where you now reside, or if they sell the debt to a debt collector in that country. The debt collection firm could collect the debt in accord with the laws in the country you now reside in. That is why I ask what EU country are you living in.
The second scenario is if a creditor in the UK makes you bankrupt in the UK. If they were to do this then any asset you have in the world, meaning property anywhere, especially the EU, could be at risk in the bankruptcy.
So what to do?
Are you working, can you afford to pay anything towards the debts? If so, then perhaps a debt management plan. This can take a long time to repay the debts, but would keep the property out of the situation.
Any form of UK insolvency such as bankruptcy, would involve the property.
Can a friend or family member assist you? Can you remortgage the property to settle the debts? Can you sell the property to repay the debts?
Obviously not all these are ideal options, but just being in the EU does not protect the property from a UK creditor, and especially from a UK bankruptcy.
Now if the property/house is not worth much or very little, or impossible to sell due to the area/market/country, then while it is an asset, it may have little value in any insolvency proceedings.
Sorry I don’t have better news.
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. I’m happy to help you for free.