20K in debt, leaving the country

[pushkin]

After six unhappy years here in which I took out a loan close to 20K with my partner (but in my name) I am going back to my home country. Along with jobloss and seperation from my partner I was left with a debt I was unable to pay. After defaulting for nearly a year, I came to an arrangement with my bank to make greatly reduced monthly payments. I want to know what the ramifications might be if I just up sticks and leave. My home is a western country outside the EU. I am well aware of the 'moral' issues involved and need no advice in that dept.

 

[ClubMan]

I want to know what the ramifications might be if I just up sticks and leave.

Presumably they or some agency on their behalf could attempt to pursue you for the debt while abroad or if/when you return? And maybe register some sort of (civil) legal judgement against you here or in another jurisdiction?

 

[oopsbuddy]

IMHO, and without condoning what you suggest, it would seem to me unlikely that much effort or money will be spent on pursuing a debt of that size, especially if the borrower is difficult to trace (ie, it may depend where "home" is) but just be sure that you don't intend to return anytime soon or look for credit if you do!

Not that the following circumstances apply to your case as you described it, but I have heard anecdotal reports of many 'foreign nationals' who live in rental accommodation and take out unsecured bank loans of up to €10k from several/many different lenders, only to abscond home at a later date without repaying. They will have accumulated a small fortune in "home" terms, and it seems like it is a well worn path!

 

[DrMoriarty]

If your bank has given you the option to make 'greatly reduced' monthly payments it would seem that this is no longer a debt that you are 'unable' to pay.
If you walk away from it, you'll be making a moral choice for which you may or may not pay a financial price.

 

[bond-007]

IMHO, and without condoning what you suggest, it would seem to me unlikely that much effort or money will be spent on pursuing a debt of that size, especially if the borrower is difficult to trace (ie, it may depend where "home" is) but just be sure that you don't intend to return anytime soon or look for credit if you do!

They will be extremely unlikely to follow you to your home country if they even happen to know where your home country is. But what is very likely to happen is that they will take enforcement proceedings here in the circuit court against you as if you were still living here. This would end up with the bank getting a committal warrant to send you to jail. It may cause hassle for anyone still living at your Irish address.

 

[Quarehawk]

If the Institution is able to trace your whereabouts, it may apply for enforcement outside of the jurisdiction. Alternatively, it may "sell" your debt to an agency in your home country.