“Dear Jon,

I moved to Germany in April. With around £20k of outstanding debt in the UK in a debt management programme which I’m paying. I also left a £1250 overdraft and have fallen into arrears on the mortgage I have on my flat which I currently let to a friend of a friend.

The arrears on my mortgage (around £1000) have got me a court order for around 3 weeks time. I really want to avoid going to court.

Is there a way to avoid this?

Is debt any different for me now I live in a different country? presumably I’m still required to keep up with all payments legally. Even though I don’t earn or pay tax in the UK?

Jon”

Jon,

I understand your concerns, but unfortunately moving to another country, even in the EU doesn’t change owing the debts, as you already know, but it can actually complicate matters a bit for you.

If the mortgage company wants to take you to court to repossess the property due to arrears, they can do this. If you can no longer afford the property, it may be the best thing. You could try to go to court yourself, or have a representative appear for you and look to have any repossession orders put aside for now, but if you cannot afford the property or show a way to cure the arrears, a judge may allow the repossession.

You may want to advise the tenant of what is going on.

You can continue with the debt management plan, and if there is a shortfall from the property, try including that in the DMP. The issue may be the shortfall is so large you can no longer afford the DMP.

By living outside the UK, you no longer qualify for the UK’s easier insolvency laws, such as an IVA, Debt Relief Order or bankruptcy. You would need to seek insolvency advice in Germany which is much harsher than in the UK.

If you are planning on moving back to the UK, you could then re-establish residency and look at options such as an IVA or bankruptcy.

I hope this helps.

Regards,

Jon

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.