What can I do about debts abroad?
The best way to deal with overseas debts depends on your current situation and the money you have available after you’ve covered your essential living costs.
In most cases, you should be able to continue making payments to debts abroad, either at the full amount, or at a reduced amount if you can’t manage the regular payments.
Making the payments can be more difficult, and you may need to do this by transferring money from your bank account. This is done across borders using an IBAN transaction. There’s usually a fee to pay for this, and your bank will be able to give you more details.
In rare cases, you may find it difficult to make payments to some countries, for example because of international sanctions forbidding the transfer of cash.
If you can’t repay your debts in a reasonable time and you decide to go bankrupt, this may also cover debts abroad depending on the countries involved.
For example, if you go bankrupt in the UK it will be recognised in most European countries, so creditors in those countries would not take any further action to collect the debt. This can be complicated, so contact us if you need any advice on which countries this applies to.
It might be tempting to stop paying a debt from overseas. Think very carefully about the possible consequences before you do this, and bear in mind that the creditor may still be able to take action to recover the money from you.