'handing back the keys'

paddyblue

I had an argument with a friend about this topic in work yesterday -

Scenario: I get the sack in the morning & i don't have income protection.

I highly doubt that the dole could pay for my 100% morgaged house sinking ever further into negative equity......so I hand the keys back to the bank and say 'Thanks but no thanks, you have the house, i'll just go rent a nice cosy room somewhere else'

My friend tells me this scenario is impossible -
First the bank will come after you for every penny you have (savings, investments, etc).
Second, you will be forced, by law, to agree a payment schedule for the difference between your current loan amount & what they auction your house off for.

So I tell him, 'Fair enough, i'll just head off to Australia....and I can start off with a clean slate'

Again he tells me it's pointless - my credit rating will follow me around the world for the rest of my life and I will never be able to earn a salary in Ireland again without paying the banks back. Furthermore, I may be prosecuted if I re-enter the country.

Is he correct or was his response off the mark?
Does anyone have any experience of this? I'm sure this will happen a lot over the comming months, especially when peoples income protection runs out

Fiachra2

In my limited experience it is very difficult to enforce debts of that nature against private individuals. I would say he is tecnically correct but you could proabbly make a settlement with the bank for less tan the amount actually owed. But you cnnot walk away from it completly

Clytus

Wouldnt it be a case that if you were pursued to any outstanding monies owed it would/could result in a court order that you pay an agreed amount...and failure to do so would put you in breach of the said order?

then youd have the Rozzas after you!!!

Blackjack

If the amount that you owed the bank was significant, the will follow up or sell your debt to a debt collecting agency.
The debt collection agencies generally buy these debts at a discount, so it's worth their while ensuring it gets settled.

maryo'dee

they would eventually get a judgement against you in court.
this would mean that your credit rating is gone so you cant borrow again till you settle with then in some way.
if you really took the piss they migt get bailifs after you but only if you had something worth taking.

Mr. Presentable

Your friend is correct. Consider they loaned you €500,000.00, but property prices falling leave it now worth €400,000.00. Plus they are a bank, not a property shop.

I also doubt they wouldn't follow you to Australia - if you could even get in, what with your credit record and your fleeing history.

mikemac

This isn't the UK. I've read about students who leave college with maybe 20k sterling in debt, declare themselves bankrupt but they can travelling for a few years and the debt is gone.
Or work and pay off an agreed rate of some many pence in the pound.
For all the stories you read about debt in Ireland, unsecured credit card debt is far, far higher over there. The OP is asking about a mortgage though

Ireland seems to be far stricter on this situation which is strange seeing as our legal systems are so similar

• You will get a judgement against you and you're bankrupt for 12 years.
• You can't be a company director
• Tbh, you'll never get a mortgage in this country again.

I don't know about the legalities of enforcing debts across international borders.
But the debt will be waiting for you if you come back...........with interest and legal fees!

gurramok

micmclo is correct.

They have you for 12 years to pay up, anything you earn they will deduct repayments.

And escaping to a 1st world country will not help as they will chase you down with a debt collecting agency.

Your better off heading to outer Mongolia or maybe the West Bank