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I am an International Student studying in the UK. I took some loans for about £3000 from a bank while I was studying here.

Since the government has abandoned PSW visa for graduates it's likely that I will move out of the UK in few weeks. I have hardly worked and cannot work due to my visa status.

Now since I cannot work in this country I cannot pay off my debt. Additionally my visa is expiring. If I move out of this country I am certain that I will not be earning enough to pay such high credit.

Could I be chased and put into jail in my own country for not paying off my debt?

migrated from quant.stackexchange.com May 17 '15 at 11:57

This question came from our site for finance professionals and academics.

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    It would likely depend on where you will live. But I seriously doubt you would be put in jail for not paying off a debt, especially one so low, unless some kind of fraud is involved. On the other hand, depending on where you move, you may be followed by debt collectors. If you are afraid of this coming back to bite you (or you just feel bad about leaving the debt unpaid), maybe you should negotiate with your debtors to pay off the debt in more convenient installments? – tomasz May 17 '15 at 12:10
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    But frankly, I seriously doubt any creditor would chase you abroad over that kind of money. Except maybe US, EU and closely tied countries (like Norway, but probably not Switzerland). It's just how I feel though, I don't have any evidence to back that, so take it with a grain of salt. – tomasz May 17 '15 at 12:16
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    As other commenters have asked, please specify the country you'll be moving to. Also, who did you borrow the money from, a bank, or was it a government student loan (from the Student Loans Company)? I think some EU citizens are eligible for them. – Ganesh Sittampalam May 17 '15 at 13:27
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    Now since I cannot work in this country I cannot pay off my debt That is a very privileged statement. You can still pay if off, even if you move to a different country and get a job there. I would get in touch with the issuer and check out my options to pay it off on more benign terms. – DumbCoder May 18 '15 at 9:11
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    @DumbCoder the OP may be forced to a home country in which it would take many years to accumulate £3000 in disposable income (3rd para of the Q); some such countries provide funding for study in the UK. We know from the visa position that they're not EU. It may cause problems in the future if the OP ends up back in the UK under a different visa program though. – Chris H May 22 '15 at 15:50
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There is no reason that moving out of the country would release you from your debts. So yes you will be chased for it. Most likely through collectors who will hassle you day and night through phone and mail harassment.

Pay your debt and you don't need to worry about this potential situation. When you take on a debt it is with an understanding that you will do whatever you can to pay it back. So do the right thing and pay it back through whatever means necessary.

Also take into account the impact on your credit

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BT chased me for a 29 GBP bill after I moved back to India from UK. They had outsourced it to a third party bill collector who presented it to my UK employer who emailed it to me.

It was a not a debt but an unknown charge that BT levied post closure of the account.

So, why wouldn't they chase you ... after all it is still one planet.

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It depends. It could prevent you from getting work in the future, as many companies run credit checks in all countries you have lived.

Increasingly within the European union, debt is chased across countries. It could also prevent you ever getting a UK visa again.

  • OP isn't an EU resident if talking about PSW visas. – Jon Story Jul 26 '15 at 1:44