Escaping Debt

Can you escape your debt?

You may think that this is possible to do, but in reality creditors and their collection agents have quite a lot of options to track someone down to recover what is owed.

Realistically if you can prove that the debt isn’t yours, you can “escape” it, as you don’t owe it, but other than this, if you owe a substantial amount of money, the creditor or it’s agent may consider it well worth finding you to recover the money.

GAIN is Gone Away Information Network and is an organisation which stores up to the minute information about consumers who have moved away without leaving a forwarding address.

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Can you avoid your debt?

This would be the intentional act of trying to avoid paying your debts back. This could include things like deliberately not answering letters or phone calls from creditors and pretending that you don’t live at the address where the creditor thinks you do.

Most people who have debts really do want to pay them back. The old adage of burying your head in the sand still happens, but eventually even they want to get it sorted.

It’s never a good thing to try and avoid sorting your debts out. The hardest thing may be to pick up the phone and ask someone for help, but it pays the best dividends when you do.

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Debt Legal Advice

If you don’t believe that you owe the debt, you can ask the creditor concerned to provide proof that you do. Alternatively, you may want to seek legal advice, but if possible try and get free legal advice. Some solicitors will offer 20 or 30 minutes free advice or you may have a legal team attached to any union that you belong to.

Fleeing the country to escape debt

Whilst it may sound a good option to move abroad to avoid the debts, aside from the costs of doing such a thing, fleeing the country may leave you worse off than before.

Any assets you have in the UK could be placed at risk, your credit rating could be seriously affected causing more problems should you return to the UK, and creditors can transfer the debt to foreign collection agents who may turn up on your new doorstep.

You could risk court action being taken and County Court Judgments being granted.

Certain creditors have even greater powers. If you owe to HM Revenue & Customs (HMRC) they have agreements with other organisations in many other countries which will help to recover the money from you. This is known as Mutual Assistance in the Recovery of Debt. HMRC can ask the local tax jurisdiction of the country you have moved to, to collect the UK money back that you owe.

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Clearing your debts from abroad / Moving in a Debt Management Plan

For someone who has moved abroad, you can still look to PayPlan for the support you need to help you become debt free. Providing your debts were taken out in the UK we can help you put together a financial statement and discuss a wide range of debt solutions that are available to you. Even though you’re living abroad.

If looking into your financial solution whether living abroad or considering the move all you will need is a UK bank account to make your creditor contributions from.

Changing your name to get rid of your debts.

There can be many reasons for needing to change your name, this could be something as simple as changing your last name for marriage. However changing your name to escape your debt is not a solution to get rid of them, it may only buy a small amount a breathing time at best. Your new name will still be linked to your credit file which all of your creditors can access, meaning it will not take long for them to catch up with you.

In addition to this changing your name for the sole purpose of running from your debt is running very close to the line, if not, actual fraud. 

It is not a realistic solution to deal with your finances.

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