We are currently still in a lot of unknown territory; so how will our exit from the EU affect Debts here in the UK, in Europe and in other countries?

Once the UK finalises the exit from the EU, any debts someone may have in the EU will fall into the category of similar non-EU debts in other countries, such as the United States. Whilst you can include those debts in a UK bankruptcy you are only afforded the protection from them in the UK. 

More and more, companies are trading across an international reach and our clients are regularly asking for solutions to recover monies from EU jurisdictions. It is up to us to ensure that we are fully up to speed with new legislation and contractual trade agreements to ensure that we can provide full support to our clients, and also identify any potential opportunities.

There are different regulations covering practices for consumer and corporate recoveries. Our team can provide expert knowledge, ensuring that monies owed can be recovered as promptly and cost effectively as possible. 

UK Debts…

Debts that have originated in the UK, in all probability, will see no changes in how they are collected. Debt collection specialists will continue to send notices, conduct phone calls, issue statutory demands, file for CCJ’s and potentially enforce bankruptcy. These are all core UK collection methods; however, how a debt may be collected from outside the UK could possibly change. 

Debts in the EU…

For example if someone has debts in Germany and includes them in a UK bankruptcy, they can be included and discharged, but only in the UK. If the person going bankrupt returns to Germany, they would be able to be chased for the debts there. The protection of Bankruptcy may no longer be available in the EU as we are no longer in the EU.

UK Debts, When the Debtor Moves to an EU Country…

Suppose you have a UK debt and leave to live in the EU, currently there is a European Payment Order, which allows debts to be enforced and collected across borders. As we are currently a member of the EU, this is in force, as to if it will remain in force or change, at this time has not yet been addressed. It is unlikely that Judgments enforcement within the UK will be affected by Brexit, however, there would undeniably be an impact on judgment enforcement beyond our borders.

Final Thoughts…

While at present there does not appear to be a visible negative effect on banking relationships or lender behaviour aside from general uncertainty about the outcome and impact of  the referendum, lenders response to UK borrowers and their debt trading patterns will be one to monitor as the situation evolves.