We have very large debts which have not seemed to diminish over the years.

We are now selling our home and should realise some equity. We do not want this to go to pay the creditors as to be honest we would still owe loads.

We are thinking of selling up and moving abroad and using the money to do this.

If we contact our creditors after the house is sold and I can put the money "away" - do we declare ourselves bankrupt or just inform them we can no longer afford the payments due to both of us not working.

I dont want to be chased whilst abroad for outstanding debts.

Please does anyone know what the best course of action is for us????

-- (lsadja@netscapeonline.co.uk), August 08, 2000

Answers

What you are basically suggesting is dishonest and could be prosecuted in a criminal court as fraud. If you disappear abroad, you can be chased by debt collectors and taken to court in the country you go to and the millstone of debt will follow you wherever you go.

A much better option if you genuinely cannot pay your debts, is to seek advice from a Money Advisor at your nearest Citizens Advice Bureau (the advice is free of charge). If bankruptcy is an option, they'll advise you what to do. You need to find a way forward wherby you can escape from the debts and the lenders. Running away from them is only a temporary delay. They do track people down.

-- James Simons (james_2999@hotmail.com), January 14, 2001.