Debts and missed payments in the UK — consequences by immigration status

Updated 27 May 2026

Consumer debts do not directly affect immigration status — but NHS debt of £500 or more (SUI 16.1 rule) blocks future visa, ILR and citizenship applications. Recent bankruptcy damages citizenship prospects via the "good character" test. Illegal lenders (loan sharks) — debt is legally unenforceable: call IMLT 0300 555 2222.

In short

Consumer debt (credit card, loan, overdraft) does NOT cancel your visa or refugee status directly. Three situations require urgent action: NHS debt of £500 or more (blocks all future immigration applications), recent bankruptcy (affects citizenship), debt with a loan shark (call IMLT immediately).

I already have debt — what to do NHS £500 debt rule — full guide Loan shark / illegal lender

01 How debt collection works in the UK

Missed payment → lender contacts you, late fees accrue.
Default notice (Consumer Credit Act 1974 s.87) → 14-day notice before default is registered on your credit file.
Default registered → remains on credit file for 6 years.
County Court Judgment (CCJ) → if creditor sues and wins. Also 6 years on file.
Charging order / bailiffs / attachment of earnings → enforcement after CCJ.
Bankruptcy → a creditor owed more than £5,000 may petition. Self-petition: £680 fee.

02 Immigration consequences by status

Refugees (5-year leave)

Consumer debt does NOT affect refugee status. BUT when applying for British citizenship: the Home Office checks "good character" (guidance v7.0, 30 April 2026). Recent bankruptcy (within approximately 4–10 years of applying) usually results in refusal. Unpaid CCJs are a negative factor. Clearing debts before applying for ILR or citizenship is critical.

ILR

Debt alone does not revoke ILR (only fraud or serious crime can). The "good character" test still applies when you apply for citizenship.

Skilled Worker / Health & Care / Family

Consumer debt does not automatically curtail a visa. BUT the Home Office may apply SUI 3 ("non-conducive to public good") in serious cases. NHS debt of £500 or more is a mandatory refusal ground for future applications.

Student

Unpaid tuition fees → sponsor withdraws → visa curtailment.

Asylum seeker (pending)

Limited access to credit, debt rarely accumulates. Limited immigration impact while the claim is pending.

03 🔴 NHS debt £500 — critical

SUI 16.1 of Part Suitability (in force 11 November 2025, replaced old Part 9/para 39E): unpaid NHS hospital debt of £500 or more outstanding for 2+ months without a payment plan is automatically reported to the Home Office. This blocks future entry clearance, leave to remain, ILR and citizenship applications.

Full details: NHS £500 debt rule — full guide →

04 Bankruptcy, IVA and DRO

DRO (Debt Relief Order) — threshold raised from £30k to £50k (28 June 2024), application fee abolished (was £90). Most accessible insolvency route for low-income migrants. Duration: 12 months.
Bankruptcy — £680 fee, 12-month discharge.
IVA (Individual Voluntary Arrangement) — 5–6 years, negotiated with creditors.

Any form of insolvency may affect "good character" for citizenship. Check with StepChange or Citizens Advice before applying.

05 Illegal lenders (loan sharks)

Loan sharks without FCA authorisation → debt is legally unenforceable under the Consumer Credit Act 1974. They cannot take you to court. But they may threaten you.

Immediate help: IMLT (England Illegal Money Lending Team) — 0300 555 2222, 24/7, free and confidential. WhatsApp: 07700 102773.

You are not in trouble — the debt is unenforceable.
Keep records of all payments made.
If threatened — call police 999 or the Modern Slavery Helpline: 08000 121 700.

Reference information, not legal or financial advice. For specific debt situations contact StepChange (free), Citizens Advice or an FCA-authorised debt adviser.