The idea of moving abroad to escape debt seems to be more of a common practice these days. People who have failed businesses or are swamped in debt believe that moving abroad will give them a fresh start and allow them to build a new life.Reading some of
comments on various UK debt forums opinions on this seem to be divided. Some people think running away from debt is too much of a risk, and creditors will eventually catch up with them whilst others encourage idea, stating that there is no way you will be found and people should move on and enjoy a new life free from responsibilities of debt.
In past this might have been a successful way to start a new life without worry of unpaid debt. However, creditors and courts alike seem to have caught up with idea over last few years and have taken action to make it more difficult for people to escape responsibility of paying money they owe.
Creditors taking action
Germany and Canada have reciprocal agreements with UK when it comes to tracing debtors and debt collection practices. There is not much information available regarding other countries with such agreements although a search on web may reveal more, it is possible that creditors do not want this information to be readily available.
A reciprocal agreement in UK means a UK Court can enforce a CCJ (County Court Judgment) using legal system of other country. If there is no such agreement in place, a creditor can sell a debt to an agency in relevant country and debt recovery procedures will commence under law of that land.
Tracing a debtor
The resources available to creditors for tracing a debtor are vast. Although resources in some countries may be limited, there are still ways and means of finding people, especially once creditor has some idea of where debtor has gone. A creditor may have their own office in that country, or relations with other credit companies in that area.
Creditors employ a variety of tactics to trace debtors. They may go to last known address, talk to neighbours, family friends or relatives who could unknowingly tell them of person’s whereabouts. Once they know which country debtor is in, their job is made much easier.
