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Hi
I have about $15000 in credit card debt, plus about $12k on a car loan and about 2k in medical expenses.
I'm planning on leaving the country to go back to the UK, what are my best options for the debt? Walk away and forget about it, or file chapter 7?
I don't plan on moving back to the US to live so will not need credit here in future once I leave.
Are there any implications on coming back to visit, i.e. can a creditor have me detained by US immigration officials for oustanding debt?
A bunch of things to keep in mind if you decide to move out of the States without paying your debts. I know this list because I know a lot of ex-pats, and this is just the short list of what stories I've read:
I'd say there is really no risk of being held if you visit the States unless you owe the IRS. Then assume it'll happen. If a lender files a profit loss income statement to the IRS for the debts they wrote off, you will owe the IRS for sure.
If you have any family here, they may get phone calls for 7+ years from creditors, collections agencies and junk debt buyers.
@Anonymous wrote:Hi
I have about $15000 in credit card debt, plus about $12k on a car loan and about 2k in medical expenses.
I'm planning on leaving the country to go back to the UK, what are my best options for the debt? Walk away and forget about it, or file chapter 7?
I don't plan on moving back to the US to live so will not need credit here in future once I leave.
Are there any implications on coming back to visit, i.e. can a creditor have me detained by US immigration officials for oustanding debt?
In my opinion it's not a good idea to just turn your back on your obligations. I think your best course of action is to repay your creditors if possible. if it's not possible, then you should file Chapter 7 and get legally discharged from your obligations. You should try to sell the car and repay the car loan.
I suppose there is very little they could do outside the US but could effect employment if they ask questions on your financial history. As others have said first cleanup your mess then leave.
Are you a U.S. citizen?
PS. RobertEG is really good at thinking through legal issues for folks. I encourage you to get some advice from him.
My priamry concern would be with the IRS.
The creditor may ultimately file a form 1099c on the bad debt, which brings IRS into the play by noticing them that you have effective "income" that must be claimed in your federal tax return.
Will you have assets remaining in the U.S. that may ultimately be subject to IRS levy or attachment based on unpaid taxes?
I have no assets at all in either country.
If I had the money to pay my debts I wouldn't be leaving the country, but I can't afford to live here any more due to healthcare costs mainly (and car insurance costs)