Like thousands of other people i ran away from my responsibility’s when things started to get tough in Dubai. I bought an apartment in Dubai but foolishly i took out a personal loan from a Dubai bank for the deposit (£20,000) Then the work started to dry up and i lost my job after 5 years. So i paid half the amount back before booking my flight and getting out of there, as the rumours going round were going to prison if you cannot repay your debts
My question is i have been contacted by a UK debt recovery agency threatening court proceedings if i do not pay off the debt unfortunately i am not in a position to pay the debt otherwise i would.
Can i be taken to a British court for an overseas debt
Just to clarify, the original debt is from a Dubai bank, and you now reside in the UK? In addition, a UK debt collection firm have contacted you for the debt?
As for debts being sold or collected in other countries, yes, a debt can be sold from one bank to a collection agency in another country, to have that debt collected in accord with the collection and insolvency laws of that country.
Have you spoken with the UK debt recovery firm? What have they stated to you, besides threatening court?
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Are you in any position to make any payments? Do you have any other debts in the UK or any assets such as property?
If what you are saying is what has occurred, and a Dubai debt has been sold to a UK collection firm, which I have not heard of before, but that doesn’t mean it doesn’t happen, it is just new to myself, it could be good for you. As the debt has to be collected in accord with UK laws, and UK insolvency laws are more consumer friendly; meaning it could work to your advantage. You do not get sent to prison in the UK for just being in debt.
If it is now a UK debt, and you have other debts, depending on your full situation, you may have options such as a debt management plan, token payment plan, or maybe even an IVA.
If you are not in a position to make any payments what so ever and your circumstance is not going to change anytime in the near future, there always is bankruptcy or a Debt Relief Order or some other form of insolvency.
Get back to me with a bit more info and we can look at this closer.
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.
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