live in Spain and have debts in the UK

[mads]

I currently live in Spain and have around £25000 debt in the UK which I can't afford. Am I still eligable for an IVA?

[MelanieGiles]

Hi Mads

It might be possible if you have a UK postal address or are able to prove a centre of business interests in the UK. How long have you lived in Spain, and how much do you think you could afford to pay creditors on a monthly basis?

[mads]

I have lived in Spain for over a year, though I do still have a UK address. I have only been able to find seasonal work in Spain, so haven't been earning for a while. I do receive a monthly pension in the UK of £200 a month, so I would be able to guarantee that no matter what, but at the moment my minimum outgoings are around £650 a month.

[MelanieGiles]

I have acted for a number of clients recently in similar situations as your own with little problem. You are at the stage now when you need to take specific advice from an insolvency practitioner who can find out a little more about your finances and be able to explaing the advantages, disadvantages and implications of each route - as you also need to consider whether bankruptcy proceedings or formal debt management might be better for you given your irregular income.

[Reviva UK]

Melanie would be the best person to call to get some informal insolvency advice and go through your options. You will be surprised that you do probably have choices!

Since Christmas I seem to have had an ncrease in brits living abroad wanting to sort their UK debts out. Maybe it is something in the air.

Make the call - then you can get on with your life.

[mads]

I spoke to an IVA advisor and they told me that as I am unemployed I can't do an IVA. They said my only options would be bankruptcy or to just ignore my debts as I've moved to Spain!
I've looked into bankruptcy and I've found out it costs quite a bit of money for the paper work, which seeing as I don't have any money as I don't have a job makes it pretty difficult.
I wrote to my creditors and explained the situation and now they have passed on the debts to collection agencies who are now threatening sending someone round to collect money (even though I live in Spain!). I'm stuck as to what I can do in this situation.

[Viki.W]

Hey Mads, Hmm, don't really agree with the "ignore your debts" advice you were given. You would surely want to be able to come back to this country with a clean slate. I think it costs £495 to go bankrupt, has this company told you it will cost more as they may be offering you a bankruptcy assist service which they will charge for. You might need them if you are staying in Spain but I'm not a technical expert so please hang in there and I'll bump this back up for someone to help you. X

[MelanieGiles]

If you have no employed income - what would be the basis of an offer to creditors? Do you, for instance, have assets which could be realised and paid over for the benefit of your creditors? If so, then your unemployment should not be a stumbling block.

[mads]

I don't have any assets or savings. My boyfriend pays all of our bills and other outgoings, but we can afford to pay £200 a month. If I can do an IVA, is it possible to complete all the paperwork etc by post or email or will I need to return to the UK?

[MelanieGiles]

You can do an IVA from Spain, if it is covering UK based debts, but you may struggle to find an IP who will act for you for such a low monthly disposable income, especially where the money is coming via a third party - unless they were prepared to formally guarantee the payment.