Dilemma of to do or not to

[marrygoround]

One of my close family members has had a sudden change in their employment (they are Latin American nationals and do not have any residency rights here in the UK other than a work visa). The company has gone bankrupt and they have been made redundant.

The dilemma is their child goes to a private school and obviously cannot attend from the new school year but the school is unsympathetic to any of their situation and demanding them to pay up the entire term fees till December. They tried negotiating saying they would pay half a term as they are financially going to be struggling, School said not their problem. It’s around £6200.

Their son will continue his studies in a state school back in their home country.

Is there any legal consequence if they just leave? Can the school keep pursuing them outside of the country?

I would imagine they have signed a contract agreeing to pay a term's fees in lieu of notice - that's fairly standard for private schools AFAIK. I guess it's up to the school but I presume they could pursue them for the fees.

Bumping as it was pretty late when this got posted!

The school wouldn't be sympathetic. They're a business and a contract was signed to agree to pay a full term's fee in these circumstances which is absolutely standard and they always pursue what they're owed. It's pretty shit to decide to just skip the country. The debt won't go away so even if they evade paying it now, it could come back to bite them later.

Of course there are legal consequences if they just leave. The school will sue them. I guess it’s harder for the court to enforce if they have left the country. Quite low behaviour.

That's tough for your relative.
But independent schools are unlikely to just waive such fees. Especially in light of the VAT and rate issues they are going to face imminently. Although most are registered charities and do not make profits, they also have to balance their books and meet their costs, the vast majority of which are for staffing. So asking for fees they are due isn't unreasonable.
And they are right, it isn't their problem.
I am not sure legally what happens if they skip the country.

The family member needs to be aware that in the U.K. a county court judgement can put a charging order on a property to ensure the payment of a schools fees debt. The dc can also not enrol at other private school if there is a debt at the previous school. Private schools are very strict about the payment of fees in lieu of notice because if they treat 1 person differently then they have to do the same for everyone. I'm not sure how a debt would be pursued overseas but the school will do all it can to get payment.

Of course they can't just skip the country owing money. They signed a contract!

I have sympathy that they’ve lost their jobs and their right to be in the UK, but if they could afford private school when they were employed, they presumably should have some savings that could cover the term’s fees, which they agreed to pay in their contract. They should have paid a deposit when their child started, so that should offset some of the amount at least. If they really can’t afford it now, I would suggest asking for a payment plan. It’s not worth having an unpaid debt, particularly if they ever want to come back to the UK as it could affect future visa applications.

Well they can.... obviously it's not morally right, but no one can stop them.

Harsh words. Understand the morality of a contract but they arent skipping the country. They are being told to leave because of their visa.

That deposit was around £1000 which I guess they were prepared to lose. Both hardworking partners who put their son through private school only cos he had SEN needs which the council could not help with through state schooling. As far as I know, they were year on year saving to put him through so this was a real shocker. Family did try to pool in but it couldn’t help them much..

Does a Country judgement affect you if you are forced to move overseas (back to your hoke country, in their case, it is in South America). They probably wont be coming back here in the future. Also their child won’t be going to a private school anyway here in the UK. They don’t have any assets here either (rental living which they have terminated as well)

It's up to them obviously. But CCJs hang around for a very long time. And the debt mounts up staggeringly fast.

had SEN needs which the council could not help with through state schooling

What sort of SEN needs the local state schools could not accomodate?
Did they work in some remote rural area on the farm?

@tennissquare
The family member needs to be aware that in the U.K. a county court judgement can put a charging order on a property to ensure the payment of a schools fees debt

These people are on a visa. How could they possibly have a property in UK if they are not permanent residents?!

@OP
The foreign debt collectors will chase them. Maybe not intensly as the amount is small but they will find their address and keep sending letters. It will affect their mortgage ability in Brazil when they want to buy a house in Brazil or get a mobile phone contract as the credit scoring checkes also outstanding debts abroad

Private schools in UK are a business and that is why in my opinion they are for very rich people only. If the state schools really cannot accommodate SEN needs and some private school can then state in some exceptional instances pays for private school placement. But that would need to be a very specialist privats school for that specific SEN needs. If the child attended a non specialist private school then his SEN needs are not that unique.
Tbh private schools are often not better for SEN kids at all. State schools have to comply with certain rules with regards to SEN kids, private don't.

What sort of SEN needs the local state schools could not accomodate?
Did they work in some remote rural area on the farm?

worked in a borough which is staggeringly bankrupt. Two year waiting list for EHCP plans. Social needs and self harm tendencies which the state schools woefully dismissed and told them go private or leave the country. Hence they took on a sacrifice to send their child to a private school as the SENCO promises were made. The child tbh has not benefited much but they had a rude awakening that in some private schools, class mentality is very prominent and this one sadly fell in that..

Foreign debt collectors - can this contract though be enforced outside of the UK jurisdiction? They are not Brazilians, both from further south near Chile, have a family home, hence heading back home they’re probably going to not face any issues. In any case, both parents have requested a payment plan to the school which has been denied, the school is demanding payment in full immediately in the next week when the school year only starts in September!

>both from further south near Chile, have a family home, hence heading back home they’re probably going to not face any issues.

They will need a mobile phone and internet etc. The credit scoring is checked then. Chile is not under the stone and they also use the international crediting companies.

I would recommend they go to visit a lawyer about it and re payment plan. I know the place where they can consult for free with the lawyer if they are in London. But they have to go there in person on Tue evening.

Realistically, the debt will be written off. The school will not spend inordinate amounts chasing debt overseas. Of course, not fair on the school as they are a business and of your family member ever want to come back to the UK, it may affect their ability to get a visa or to obtain credit due to a CCJ etc. But CCJs are on file for 6 years or so.

If the fees are 6200 and the deposit is offset - what is left is 5200. I suggest they pay what they can (transfer that to the school) and leave. Nothing else they can do really

The school will not spend inordinate amounts chasing debt overseas.
Personally they won't buy after 6 years the debts are sold to the international companies speciallising in debt collection. They also have teams in Chile. They will harrass them for years.

But honestly the best is to talk to the lawyers what to do

Hmmm - I am from an international background and sadly I have seen this happen more than once in the past 20 years or so and no one was chased abroad. Not for these paltry sums. It may well have an effect on future entry into the UK, credit in the UK etc but you will not have debt collectors chasing 3k in Chile or wherever. At least I have never heard of that for similar situations (internationally - but not Chile).

I would advise pay as much as they can, let them know you can pay whatever is left instalmentally and if declined, leave it at that.

Experian. Every country checks Experian. Nobody wants go give money to somebody who is chased by creditors in the other countries

Right. Just speaking from experience of people I personally know and went to school with in the UK as international students. Nobody was chased abroad and none had any consequence abroad. For many, it was bad debt built up as students and later on parents who faced not dissimilar situation to what has been described. All had their credit in the UK damaged and I know of one who says her visa was declined years later. So there are consequences

Of course, pay what they can in good faith and the school deserves to have the fees paid. But just stating the reality of what I have seen happen - no one got chased abroad or had their home country credit affected. Saying that, the amounts were small - low thousands

@newmummycwharf1 but when was that? Honestly things have changed in the recent years when it comes to the international checks of credit scores

They have the school over a barrel. They can offer to pay over time and say what they will pay.

If the school do take them to court they can defend saying they have offered payment.

If the school managed to get a CCJ it stays on your credit record for 5 years. And the court decide what is reasonable to pay per month.

BUT it does show if you are making payments and you can ask for a note to be added saying, "We were employed in the UK on a visa, our employer became bankrupt and we had to leave the country".

When the debt is paid it shows as 'satisfied'. Obviously I do not know the law in Argentina / Uruguay / wherever but in the UK you can demand a manual credit check rather than an automated one.