You do not need to do anything really. I know £40,000 of debt sounds like a serious amount to you, but in today’s debt ridden world it’s fairly small to average.
You have lived in Spain for 4 years and have no assets of any significance in the UK.
This debt has probably already been sold to the debt recovery company you mention.
The most likely outcome is that it will just fade away. Your UK credit file will already have this debt recorded as a default. After 6 years it will be removed.
Just for the record ‘’but don’t panic’’ because it won’t happen. They could:-
Get a county court judgement against you. ‘’So what’’, what are they going to do with that.
Then go for a bankruptcy order. It won’t happen because it’s expensive. But for peace of mind you could write to the debt recovery company.
‘’I can confirm that my centre of main interests is in Timbuktu and is the country of habitual residence. I have not lived or carried on any business in England and Wales in the previous three years. You may continue to write to me at this address, but this address is not my home. This address cannot be used for any court proceedings.’’
And quote below
‘’265 Conditions to be satisfied in respect of debtor.(1)A bankruptcy petition shall not be presented to the court under section 264(1)(a) or (b) unless the debtor—
(a)is domiciled in England and Wales,
(b)is personally present in England and Wales on the day on which the petition is presented, or
(c)at any time in the period of 3 years ending with that day—
(i)has been ordinarily resident, or has had a place of residence, in England and Wales, or
(ii)has carried on business in England and Wales.
(2)The reference in subsection (1)(c) to an individual carrying on business includes—
(a)the carrying on of business by a firm or partnership of which the individual is a member, and
(b)the carrying on of business by an agent or manager for the individual or for such a firm or partnership.’’