Debt after uk leaves the EU

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Debt after uk leaves the EU

Post by burnt4head » 06 Aug 2018 17:54

Hi All
A court judgement was issued against us 4 years ago regarding mortgage arrears with Bank Of Cyprus.
We entered a payment plan to maintain the interest and pay off the arrears.
Due to circumstances we’ve sent over only €32k instead of the agreed €55k, over 44 months.
We have had no contact with BoC over these 4 years until last week when I requested a statement.
The email from the same lady we dealt with 4 years ago was quite pleasant and helpful, she said as we’ve been making regular payments as per agreement that they didn’t proceed with any execution measures.
According to the statement the debt is spiralling out of control, we paid €7k last year but our debt has gone up by €16k !
I’ve roughly worked out that we will have to send over €2k a month just in interest payments, which isn’t going to happen, I’m awaiting ar response from them, it’s not looking good.

My main question is when the uk leaves the EU, how will this affect the banks recovery process ?

Thanks, Scott

Nigel Howarth
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Re: Debt after uk leaves the EU

Post by Nigel Howarth » 06 Aug 2018 21:42

Hi Scott

I don't think anyone can say with any certainty how BREXIT will affect the bank's recovery process.

Currently, if you do not defend an action taken against you in another EU member state, the plaintiff (the bank) can request an 'EU Enforcement Order'. If successful the order will be enforced in the UK and yo will not be given the opportunity to defend.

The may change under the BREXIT agreement (assuming there is one) but until a deal/no deal has been settled, no-one can say how the system will (or will not) change.


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