Bad debts

J

Jon

Guest
I have recently returned from a round the world trip in which I abandoned all my debts to my parents (not a good idea, i know) but i needed to get away. I have now returned ad am in the process of setting things right.As luck would have it, I am due a settlement form a crash for 21000 euro. This, I am using to clear all outstanding debts totalling 12000 euro. However, AIB have registered a bad debt against me and also Natwest in London. Both are for small sums of 300 euro and 300 pound respectively. Do I have any way of appealing these. How will they affect me. My long term plan is to move to Canada, and with somesavings over the next year and the deposit to open a bar there. Will they check my credit rating in ireland and England and what is the likely outcome.?? Any help w9ill be appreciated. Thanks
 
G

Guest

Guest
> However, AIB have registered a bad debt against me and also Natwest in London.

What do you mean? Court judgements? ICB records? Something else?

www.oasis.gov.ie/personal...ureau.html

> My long term plan is to move to Canada, and with somesavings over the next year and the deposit to open a bar there.

No offence but if you could not manage your finances in the recent past would it not be better to spend some time rectifying the bad habits (e.g. by working as an employee and getting into the habit of saving some of your earnings etc.) instead of taking the plunge into starting your own business?

> Will they check my credit rating in ireland and England and what is the likely outcome.??

Who? The Canadian immigration authorities? The banks over there if/when you go about starting your own business?
 
J

jon

Guest
Aib have registered a bad debt with the ICB. I dont fully understand the consequences, or what actually happens from here once I have the bad debt.

No offence but if you could not manage your finances in the recent past would it not be better to spend some time rectifying the bad habits (e.g. by working as an employee and getting into the habit of saving some of your earnings etc.) instead of taking the plunge into starting your own business?

yes, I understand your point here. But I am now a lot more careful when it comes to money. I realise its value having lived abroad, and been on the breadlinemany times. Im 22, an before moving, I thought nothing about going out every weekend and blowing 200-300 euro on having a good weekend. Buying expensive clothes on my credit cards. I now realise where I want to go and what i want to do. I have a budget in place and stick to it.

Will they check my credit rating in ireland and England and what is the likely outcome.??

Who? The Canadian immigration authorities? The banks over there if/when you go about starting your own business?

I was merely asking here whether the canadian banks would look into my credit record in the UK or Ireland. Between us we have approx 80-100,000 canadian dollars to invest in the business. Im thinking we may need to borrow a further 100-150,000 canadian ndollars to get things up and running. My debt in the Uk, for 300 pound was from an overdraft I had, but when moving backf romthe UK forgot completely about. Eventually, IU was contacted by Natwest and told about the balance. They would not accept euro checks and while I was earnig , was stiull not earning enough to pay the balance off, what with credit card bills, loan bills etc etc coming in the door all the time...

Thank youfor your help and any other advice is greatly appreciated.
 
G

Guest

Guest
> Aib have registered a bad debt with the ICB. I dont fully understand the consequences, or what actually happens from here once I have the bad debt.

The link above explains how the ICB works and how Irish credit institutions have access to the records in order to draw credit rating conclusions. A bad debt or similar "black mark" stays on your records for a maximum of five years and would normally be considered by lenders who are evaluating a customer for a loan. Obviously it COULD have negative implications although other factors would also be taken into account (e.g. more recent credit history and savings record etc.).

> I was merely asking here whether the canadian banks would look into my credit record in the UK or Ireland.

I don't think that foreign banks would have access to the ICB records but they may ask you to provide these yourself (the link above explains how to get your records) or other evidence of your borrowing/savings/investment past. I would assume that any bank dealing with a business would look for some sort of information in this context. Banks dealing with individuals may do so too.

Obviously even if you had "black marks" on your credit record but have since fully discharged the debts this would be generally be viewed more positively than if you did a runner from them altogther.

To get more specific information on what might happen if/when you open a private or business account in Canada or elsewhere you might be better off searching for sites or bulletin boards that specialise on those regions?

> My debt in the Uk

Did this result in some (court?) judgement against you or how else was the bad debt "registered" if at all?
 
Z

zag

Guest
Any lending institution anywhere in the world will try to check your credit history. If you have no history in Canada they will look for your history wherever you lived before. There are two outcomes here - either they can't see your history in which case they will be reluctant to lend you money or they can see your history in which case they will be reluctant to lend you money.

The ICB record is merely a record of the fact that you defaulted on a loan. If you can convince any new lender that you won't default again then they may overlook the default, but I wouldn't bank on it.

z
 
J

jon

Guest
My debt in the Uk

Did this result in some (court?) judgement against you or how else was the bad debt "registered" if at all?

When I spoke with Natwest, through there own branch of Debt Collectors,I was told that my name was listed on a regiser for 6 years form when I began default?

The ICB record is merely a record of the fact that you defaulted on a loan. If you can convince any new lender that you won't default again then they may overlook the default, but I wouldn't bank on it.

by the time I go looking for the loan, i will have a goiod 18 months worth of regular banking,steady salary - including up to a year in a canadaian bank.. Also with the deposit and partnership with my friend...Do you think they will look favourably - I realise your not Manager of the Bank of canada so know you cant give a defitie answer.
 
G

Guest

Guest
> When I spoke with Natwest, through there own branch of Debt Collectors,I was told that my name was listed on a regiser for 6 years form when I began default?

I guess it's on whatever the UK's equivalent of the ICB is so? I'm not sure if they operate a similar scheme whereby credit history records only (not credit ratings as such) are stored in some central repository accessible to all banks or if there are one or more credit rating agencies who take care of this. Might be worth checking up and getting both your Irish and UK credit credit records so you know the score yourself and can decide how to approach Canadian banks when the time comes.
 
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