Legality of defaulting in the UK

[TheMightyPhill]

So,

My application for a work permit was declined by the home office. That's pretty shit... means I am moving back to Adelaide... which would be cool but I DON'T WANT TO LEAVE. Good news is that my girlfriend is coming back with me. Nice.

Also means that I have about £6000 worth of debts to settle here from travelling, well refinancing travel debts, done when I was going to be staying here for a bit.

What I am wondering is, if I don't pay my debts and piss off back to OZ what would the procedure be? It is not illegal perse... so far as I understand it. A mate reckons it would mean no finance here for 5 years but it wouldn't black me from the country or impede any future visa apps here. I wouldn't even ask but $15k is a lot of Aussie dough to forgo.

Anyone defaulted before in the UK? Thoughts?

Cheers.

(Apologies if not legal enough, thought it was a close fit)

[Symon_magus]

So,

My application for a work permit was declined by the home office. That's pretty shit... means I am moving back to Adelaide... which would be cool but I DON'T WANT TO LEAVE. Good news is that my girlfriend is coming back with me. Nice.

Also means that I have about £6000 worth of debts to settle here from travelling, well refinancing travel debts, done when I was going to be staying here for a bit.

What I am wondering is, if I don't pay my debts and piss off back to OZ what would the procedure be? It is not illegal perse... so far as I understand it. A mate reckons it would mean no finance here for 5 years but it wouldn't black me from the country or impede any future visa apps here. I wouldn't even ask but $15k is a lot of Aussie dough to forgo.

Anyone defaulted before in the UK? Thoughts?

Cheers.

(Apologies if not legal enough, thought it was a close fit)

I'm not exactly sure about the UK's legal system, but I work in bankruptcy here in the states. Is any of the debt secured? (i.e. is there any collateral attached to the debt?). If not, you'll probably be fine.
You'll probably be fine although it may affect your credit report for up to 8 years (at least here is does).

[*Ghost]

Phill,

If you default on payments here in the UK your creditors can apply to the courts and have a CCJ registered against you. If you fail to pay there are various forms of enforcements that can be used to obtain the outstanding monies. As you are planning to go back to OZ then it wouldn't be financially viable for them to go for this option and the CCJ's would remain on your credit record for 6 years. If you plan to return to the UK within this time it is likely that they will find out about your debts and there is always the possibility that they might try to obtain payment then - as when you apply for any kind of credit facility they ask you for your address / es for the previous 3 years. If you fail to disclose that you have been a resident in the UK & the 'lender' finds out that you have defaulted on payments and not declared them then they are at liberty to terminate any agreement that you have with them without prior notice.
If your creditors go for a Bankruptcy Petition against you then this will affect your credit and ability to obtain it more. It is illegal, even when you are a discharged Bankrupt ( this fact still has to be decalred to may lenders) to obtain credit of any kind - this even includes obtaining car insurance on monthly instalments, as it is a form of finance.
The main sticking point will come if any/ all of your debts are secured.

I don't know if/ how having an adverse credit rating will affect your Visa applications though.

Bet you're glad you asked now aren't you? ;)

[TheMightyPhill]

Thanks a lot *Ghost.... that is exactly why you need to ask these things :)

Will organise payment methinks, I do hope to be back sooner rather than later.

[tomsyman]

I came back to Aust without paying my credit card. They got a debt collection agency in Perth to chase me as they had my Australian address. They did however offer me a once off 33% discount if I paid after I'd ignored them for a while and they were threatening to take me to court.

[ShinymetalASS]

I'm not familiar enough with the specific legislation, but I believe we have arrangements with the UK that enable them to trace debts back to Australia and demand collection. From (very vague) recollection, it's not unlike our tax treaties with other countries.

Pay it though. Bad credit can be a financial death sentence these days. Don't make life harder for yourself than it has to be.