What's the worst that could happen?

[Andy H 1]

All going well, our visa will be close to being completed in the next few months. The question I have is what can happen if I leave unpaid debts here in the UK?

Last year I took out a new phone contract for 24 months, this was before I knew I would be intending to move to the U.S. I am not in a financial position to pay the rest of the contract so I will probably have to leave it unpaid. What is the worst that could happen? I will be coming back to the UK for vaations etc and could it effect my credit rating in the U.S.?

[RichiJenny 14]

I wont condone just leaving debts behind BUT what I will say, I know of 3 people that have done just that - one who was heavily in debt, about 4 years ago and the most recent just a few months ago. Neither have had any consequence as yet, and they dont expect to do so.

Thats as far as I know, and I know it to be genuine. Now, whether the likes of experian/equifax share UK info with the US as of now, today, I cannot confirm or deny, as I dont know.

Some will say do the right thing and pay up, some will say you've paid your dues here now move on. At the end of the day its up to you personally, but Im near positive your rating here wont affect your US rating. And then for debt companies to spend money on tracking you down, I think its a no go-er.

Good luck whatever you decide.

[RichiJenny 14]

I wouldnt worry about being arrested or anything at the airport on your return. Having debt is not a crime. owing council tax/fines/govt monies - skipping out on that may cause an issue on your return depending on how much was owed, but phone bills/credit card debt wont cause you a problem at all.

Ive seen this question raised a lot over the years on here.

If you can live with the guilt of owing a multi million pound company a few quid and sleep at night for the rest of your life - the choice is yours!

[Jewel-8 21]

My husband continued paying his phone bill for the extra 10 months he had left on it. The contract he had was only about 25 quid a month I think.

He also ran up a bit of UK credit card debt while living over here and unemployed. I ended up giving him a beat up old car of mine and he took out a $2500 loan against it and wired the cash over to cover one of the two cards. This is helping him build his credit here while still allowing us the opportunity to move back over there if we need to.

[TracyTN 237]

Agree with post #2. My understanding of this (from the various threads on it I've seen over the years) is that whatever debts you leave behind are essentially wiped clean after 7 years, so unless you think you might move back to the UK in the next 7 years, its not likely to be an issue for you.

[elmcitymaven 9,712]

It's also worthwhile remembering that CCJ's are civil debts, so any of those incurred before departure will NOT cause a problem in leaving the UK or indeed entering it again in the future. As has been mentioned above, this will NOT affect your credit rating in the US, as currently there is no information sharing between the agencies in the UK and the US. Also, if pursued over here by a creditor based in the UK, bear in mind that current treaties between the two countries are such that a debt enforceable in one country is not necessarily enforceable in the other. There is a way for a creditor to do this, but it requires much paperwork, and the amount you owe on a mobile contract is probably not going to meet any de minimis amount they may set for taking such action. If pursued in the US, you have the right not to pay it, but again that is a personal choice.

[Nich-Nick 3,354]

Just curious, but did you talk to the company and see if you could get out of the contract ifyou were leaving the country? It's not like you're going with a better offer and dumping them?

Edited January 12, 2011 by Nich-Nick

[Andy H 1]

Just curious, but did you talk to the company and see if you could get out of the contract ifyou were leaving the country? It's not like you're going with a better offer and dumping them?

No I haven't spoken to them yet, just considering my options at the moment.

[Darnell 8,479]

in the USA, a handphone contract usually has an early termination clause - do you have something similar, and if so - what's the 'buyout' amount ?

[elmcitymaven 9,712]

in the USA, a handphone contract usually has an early termination clause - do you have something similar, and if so - what's the 'buyout' amount ?

The OP clearly states:

I am not in a financial position to pay the rest of the contract so I will probably have to leave it unpaid.

[bucknutt76 0]

I honeslty wouldnt worry about it. Its not worth it to the company to go through what the would have to to even try to collect the debt. Especially over a couple 100 pounds max. They will write it as a loss Im sure.

[chimneygrl 0]

I know when I moved and the phone service did not cover my new area then they canceled my line for free.