If you recently moved to Canada and have debts to pay at home, you’ve got two options: negotiating affordable monthly payments or defaulting on your financial obligations. But can you really get away that easily?
The idea of leaving one’s country to escape from debt looks alluring to many people. Those with multiple debts or failed businesses may think of moving to Canada as a way of starting anew, free from debt. For some, running away from the debtors involves risk while for others, the chances of being found are too small to bother. Truly, hiding from one’s creditors was possible in the past; now, the courts and creditors have taken measures to make it more difficult for debtors to run away from debt.
Canada and Germany, for example, have agreements with the United Kingdom with regard to tracing debtors. These agreements make it easier to locate borrowers abroad and even sell debt to companies in the country where the debtor has immigrated. The company that owns your debt can chase you up under the acting laws of the country where you are currently hiding. So, debt recovery procedures will start under Canadian legislation. Your creditor may also run offices or departments in the country or it can have relations with crediting institutions in the region. In addition to this, the creditor may simply go to your last known address and ask your friends, relatives, and neighbors about your new whereabouts. Once they find out the country you have moved to, it is much easier for them to locate you.
Creditors have a period of six years to take legal action against you, eventually recovering their money. However, if the creditor already took legal action on your account, your debt is recoverable indefinitely. Then again, what options are you left with?
If you are moving from the United Kingdom to Canada, look at the amount of debt you have to repay. You might be entitled to a debt relief order if your unmanageable debt is less than 15,000 pounds. That way, most of your debt will be written off. If you have a job and a regular income, consider undertaking a debt management plan or an individual voluntary agreement (IVA). The latter stands for a formal alternative for persons who seek to avoid bankruptcy. Governed by the 1986 Insolvency Act, IVA represents a repayment proposal you present to the creditor through an Insolvency Practitioner. In the typical case, the individual voluntary agreement includes claims of unsecured creditors. This financial instrument is a good option to bankruptcy as it can be made to fit your particular circumstances. So, the conditions of the contractual agreement will be based on your income, capital, third party payments, etc.
Of course, countries differ with regard to insolvency legislation, and you have to be familiar with the insolvency laws in your country of origin. Many people struggle with debt abroad, not knowing that financial help is one reach away. If you go for a debt management company, it can set up a repayment plan and negotiate affordable monthly payments on your behalf. In this way, you will stop worrying that debt is constantly haunting you. Yet, be careful when choosing a debt management company – some charge monthly fees and an initial set-up fee. Then, if you are lucky, the company may get your charges and interest frozen, making your financial situation less stressful and giving you a chance to make a fresh start abroad.
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