I am a UK resident but have a NZ student loan outstanding…

Question

Hi Chris, I am a UK resident but have a NZ student loan outstanding since the
90's with a balance of $28000 and an assessment of $11000 apparently due now. I
have just received an email and text from CCICM in the UK with the below: We
have been instructed to contact you in relation to the above unpaid account,
please call CCI on 01766 772292 to discuss this matter further.

Lawyer's Assistant: Have you talked to a United Kingdom lawyer about this?

Sorry hit send by miistake rest to floow.

Lawyer's Assistant: What steps have you taken so far?

I have made regularar payments for around the last five years which did nothing
to the principal owed and I geuss I felt it pointless to carry on paying when it
seemed to make no diffferance, so I stopped the payments about 2 months ago. Has
anything changed that this company can take me to court in the UK? And will I
still be able to travel to NZ although I am now a UK citizen so normally I use
the UK passport for travel. I have not been in contact with CCICM or IRD at this
point.

Lawyer's Assistant: Is there anything else the Lawyer should know before I
connect you? Rest assured that they'll be able to help you.

No that is all, thanks for your help.And I have not contacted any UK lawyer
about this matter.

Chris The Lawyer · Accepted Answer

Hi My name is ***** ***** I am a New Zealand lawyer based in Wellington with
more than 42 years of experience. I am here to help with your questions.You
cannot be sued in the UK for the student loan. However the debt collection
company will probably become very annoying and contact you frequently to keep
making payments. It is possible  for Inland Revenue to get a judgement against
you for the unpaid student loan in New Zealand. It is theoretically possible to
enforce that judgement by sealing the judgement in the UK, which would then
permit them to enforce the loan. The cost of doing this is considerable, and I
have not seen any examples where this has been done. So the most serious
consequence is that you will be harassed by the debt collection company. In
terms of travelling however, if you enter New Zealand, you would be at risk of
being arrested at the airport as a defaulting student loan person.You cannot be
sued in the UK for the student loan. However the debt collection company will
probably become very annoying and contact you frequently to keep making
payments. It is possible  for Inland Revenue to get a judgement against you for
the unpaid student loan in New Zealand. It is theoretically possible to enforce
that judgement by sealing the judgement in the UK, which would then permit them
to enforce the loan. The cost of doing this is considerable, and I have not seen
any examples where this has been done. So the most serious consequence is that
you will be harassed by the debt collection company. In terms of travelling
however, if you enter New Zealand, you would be at risk of being arrested at the
airport as a defaulting student loan person.You could consider applying for
bankruptcy in New Zealand, and if you do not own substantial assets in the UK
then that would finish in 3 years. But as for arrest, the border may miss you a
UK passport but if the name is ***** ***** they may ask some hard questions

Chris The Lawyer · Answer

You cannot be sued in the UK for the student loan. However the debt collection
company will probably become very annoying and contact you frequently to keep
making payments. It is possible  for Inland Revenue to get a judgement against
you for the unpaid student loan in New Zealand. It is theoretically possible to
enforce that judgement by sealing the judgement in the UK, which would then
permit them to enforce the loan. The cost of doing this is considerable, and I
have not seen any examples where this has been done. So the most serious
consequence is that you will be harassed by the debt collection company. In
terms of travelling however, if you enter New Zealand, you would be at risk of
being arrested at the airport as a defaulting student loan person.

Chris The Lawyer · Answer

You could consider applying for bankruptcy in New Zealand, and if you do not own
substantial assets in the UK then that would finish in 3 years. But as for
arrest, the border may miss you a UK passport but if the name is ***** *****
they may ask some hard questions

Chris The Lawyer · Answer

Probably not, although you would need to disclose your ownership of your half
share

I am a UK resident but have a NZ student loan outstanding…

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