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PTY1971
Posts: 3
Registered: ‎09-18-2012
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What would happen if I stop paying my U.S. credit card while living overseas?

I need some advice.  I have a credit card issued by a U.S. bank that I've had for YEARS.  I have been living outside of the U.S. for nearly 12 years and I've never stopped making my monthly payments.  However, recently I've run into some financial set backs and my balance has grown a lot that it is getting really hard to keep up with the payments.  I keep wondering what would happen (other than ruin my credit score) if I just stop making the payments.

 

Does anyone know if the banks or collection agencies can use legal measures outside the U.S?  Or if I step one day back in the U.S. will there be an alert to arrest me?

 

I am getting desperate.

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DeadSpider
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Re: What would happen if I stop paying my U.S. Credit card while living overseas?

Same thing will happen if you were in US, get sued and CO and bad credit.

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gettnthere
Posts: 912
Registered: ‎06-14-2012
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Re: What would happen if I stop paying my U.S. credit card while living overseas?

I dont think they arrest people for defaulting on their debt obligations. i would try everything in my power to make some kind of payment or call up the U.S bank and work out some kind of agreement. but, if you are having problems keeping up with the payment i would most certainly stop using the card to rack up more debt. They can ,however, Sue you for the remaining debt if you just stop paying but im not sure how that works if your oversees. i Def DO NOT think you should "stiff" the bank and just stop making payments alltogether. Maybe someone else can offer up some more insight.



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bichonmom
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Re: What would happen if I stop paying my U.S. credit card while living overseas?

[ Edited ]

PTY1971 wrote:

I need some advice.  I have a credit card issued by a U.S. bank that I've had for YEARS.  I have been living outside of the U.S. for nearly 12 years and I've never stopped making my monthly payments.  However, recently I've run into some financial set backs and my balance has grown a lot that it is getting really hard to keep up with the payments.  I keep wondering what would happen (other than ruin my credit score) if I just stop making the payments.

 

Does anyone know if the banks or collection agencies can use legal measures outside the U.S?  Or if I step one day back in the U.S. will there be an alert to arrest me?

 

I am getting desperate.


You might get more info on the rebuilders thread. Each state has its own statute of limitations: edited

 

Being that you're not in the US, I don't think they can sue you. And even if they could, it would need to be financially worth it to them. And I believe there is something about when you sue someone, it needs to be in the jurisdiction where they're living. 

 

Theydont arrest people for debt. However, your credit would be in bad shapre for 7-7.5 yrs from the DOFD (date of first delinquency). The best bet would be to call and see if they would work out something. Or before you get behind, see if you can get a bank loan at lower interest and pmts, to payoff the cc.

 

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Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

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gettnthere
Posts: 912
Registered: ‎06-14-2012
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Re: What would happen if I stop paying my U.S. credit card while living overseas?

[ Edited ]

bichonmom wrote:

PTY1971 wrote:

I need some advice.  I have a credit card issued by a U.S. bank that I've had for YEARS.  I have been living outside of the U.S. for nearly 12 years and I've never stopped making my monthly payments.  However, recently I've run into some financial set backs and my balance has grown a lot that it is getting really hard to keep up with the payments.  I keep wondering what would happen (other than ruin my credit score) if I just stop making the payments.

 

Does anyone know if the banks or collection agencies can use legal measures outside the U.S?  Or if I step one day back in the U.S. will there be an alert to arrest me?

 

I am getting desperate.


You might get more info on the rebuilders thread. Each state has its own statute of limitations: edited

 

Being that you're not in the US, I don't think they can sue you. And even if they could, it would need to be financially worth it to them. And I believe there is something about when you sue someone, it needs to be in the jurisdiction where they're living. 

 

Theydont arrest people for debt. However, your credit would be in bad shapre for 7-7.5 yrs from the DOFD (date of first delinquency). The best bet would be to call and see if they would work out something. Or before you get behind, see if you can get a bank loan at lower interest and pmts, to payoff the cc.

 



I didnt even think about that for some reason. OP that is a really great idea.



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LS2982
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Registered: ‎04-09-2011
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Re: What would happen if I stop paying my U.S. credit card while living overseas?

If the OP is strapped for money how are they going to make the loan payment if they can't make a minimum payment on a CC?



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bichonmom
Posts: 3,318
Registered: ‎05-05-2011
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Re: What would happen if I stop paying my U.S. credit card while living overseas?

A bank loan is likely going to have lower interest, so he'll be able to get out of debt sooner. And sometimes pmts can be less, or interest-only, depending. There may be more options working with his bank than the CCC, and may be will buy him some time to improve his finances. I don't know if it is workable or not... just an idea. :smileyhappy:

 

 

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DaveSignal
Posts: 2,111
Registered: ‎07-29-2011
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Re: What would happen if I stop paying my U.S. credit card while living overseas?

I think it would work if the OP was planning on never coming back to the US.   If back within 7.5 years, however, life would be hard.   Of course, I don't advocate running from debt, that shows a lack of honor and integrity.  But to answer the question, other countries have their own CRAs.  You could live the rest of your life in Philippines (or any other country for that matter), and continue to build your new life there.

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compassion101
Posts: 628
Registered: ‎06-06-2012
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Re: What would happen if I stop paying my U.S. credit card while living overseas?

It sounds like you're asking if they will come after you in a foreign country. They won't. It also won't affect any standing you have in the foreign country as far as credit goes.

 

But you will return to the u.s. at some point i assume, and your credit will be damaged. They might also be able to sue you in the u.s. and get a default judgement if they can prove they tried all avenues to serve you with notice. They can't arrest you just on the bad debt, so unless they can prove some type of fraud you will be okay from that standpoint.

 

Still best to try to work something out imo.

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trumpet-205
Posts: 2,494
Registered: ‎11-11-2010
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Re: What would happen if I stop paying my U.S. credit card while living overseas?

[ Edited ]

First, your US credit is tanked. You will have trouble getting loans, credit card, rent, and in some circumstances, jobs in US.

 

Collection agency is probably not going to sue you (although I believe they can, just doesn't serve much purpose unless you have valuable assets in US). US doesn't do debtor's prison for a very long time, so no arresting will be done. However, if you ever set your foot back to US (which I'm pretty sure you will), collection agency can come after you, even after SOL (they just can't sue you when it is past SOL, but they can still attempt to collect debt).

 

It sounds to me like you rack up some big debt, since you are making long-term minimum monthly payment? I'm a firm believer that if you owe something, you ought to pay it back.

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