UK Debt Help Whilst Living Abroad
Many people living in the UK and suffering with debt problems would jump at the chance to make a fresh start by moving abroad if the opportunity arose.
But, the truth is, walking away from debt is completely ineffective as a debt solution.
And, in our ever shrinking world, there is every chance that creditors will make the effort to trace those that do.
Receiving professional debt advice before leaving the UK for pastures new is good practice, as it ensures all debts are dealt with formally, in the correct manner, and gone for good.
But sometimes this just isn’t possible.
So, can an IVA be used by people who have already moved abroad, yet still have debts at home the need to clear?
Absolutely it can.
An IVA for UK debt whilst living abroad.
An IVA can provide the perfect solution to those living abroad and looking to clear their UK debts.
The only requirement is that the applicant must have been resident in either England, Wales or Northern Ireland within the previous 3 years of the application.
This gives ex-patriots, UK citizens living abroad, the opportunity to deal with their UK debt problems without the need to return to the UK.
Naturally, there are a few practical aspects that would need to be considered, such as ease of communications if there are time differences involved.
And other aspects relating to compliance of the IVA’s terms and condition, such as ensuring your international payments can be made securely.
Other consideration include:
- Providing a UK bank account.
- Money transfer fees.
- Costs of exchange to UK sterling.
Beyond these practical differences, and with the constant improvement in communications across the wold wide web, making an IVA application whilst living abroad is pretty straightforward.
The IVA payments are still based on affordability.
Affordability is established in the same manner as normal, although special attention will be given to ensure the applicant's costs of living are realistic for their country of residence.
When significant differences exist between the costs of living in the UK and the applicant's country of residence, every effort is made to ensure the budget can sustain a reasonable lifestyle.
In the end, the final decision belongs to creditors as to whether the find the proposed budget acceptable and they are free to reject it if they feel it isn’t.
The applicant's assets will also be assessed as part of the IVA preparations and, where necessary, property valuations will be asked for.
When a property is owned, either in the UK or abroad, the applicant’s equity share will be assessed.
A simple calculation is undertaken to determine the value of the property, with any secured borrowings being deducted, as well as any co-owner's share of the equity.
If the equity share remianing is more than £10,000, the IVA's term will likely be extended by 12 payments, in leiu of equity and in line with normal expectations under the 2025 IVA Protocol.
For more information on how the equity in your home will be assessed, please get in touch.
Applying for an IVA when Living abroad.
Are you living abroad and looking to apply for an IVA in the UK ?
IVAorg specialise in helping people enter IVAs whilst living abroad and will be happy to help you too.
