Left the U.S. before loans went into default, can a judgement be entered if I cannot be served?

[Anonymous]

Due to serious family issues abroad, I left the U.S a few months back and my loans are slowly going into default. These loans include an SBA loan, student loans, credit cards, business lines of credit, etc. I have no assets left in the U.S. for them to seize, such as a home or a car. I was wondering if a judgement can be entered against me by my creditors if I was never properly served. When I left the country, my credit score was above 700 and I was not late on anything. I keep reading mixed feedback online. Some say a judgement cannot be entered because I am outside of state jurisdiction; not even a default judgement, because that's when you don't respond AFTER you've been already been served. I have no family in the U.S. and I've lived alone practically my whole life so there is no one there to sign on my behalf either. I'm not sure if the lenders are even attempting to have me served but I'm sure as time goes on, they will. This is the summary of what's going on and here are my questions:

1) If a judgement IS entered against me despite me not being in the country, can they still freeze my bank accounts? How long will it last?

2) Is this also true if I have a brokerage account (stocks)? 

3) Does this mean I will never be able to return to the U.S. again? 

4) Will these defaults/delinquencies/possible judgements affect me obtaining credit in another country? Such as renting, etc.

5) I was wondering if they might see me as someone who fled the country to escape the debt, regardless of my personal family issues. Does this make me a financial "criminal"? 

[Anonymous]

There are numerous methods of constructive service, so the fact you do not receive personal service of a judgment against you will not prevent that judgment from being entered.

[Anonymous]

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@Anonymous wrote:

Due to serious family issues abroad, I left the U.S a few months back and my loans are slowly going into default. These loans include an SBA loan, student loans, credit cards, business lines of credit, etc. I have no assets left in the U.S. for them to seize, such as a home or a car. I was wondering if a judgement can be entered against me by my creditors if I was never properly served. When I left the country, my credit score was above 700 and I was not late on anything. I keep reading mixed feedback online. Some say a judgement cannot be entered because I am outside of state jurisdiction; not even a default judgement, because that's when you don't respond AFTER you've been already been served. I have no family in the U.S. and I've lived alone practically my whole life so there is no one there to sign on my behalf either. I'm not sure if the lenders are even attempting to have me served but I'm sure as time goes on, they will. This is the summary of what's going on and here are my questions:

1) If a judgement IS entered against me despite me not being in the country, can they still freeze my bank accounts? How long will it last?

2) Is this also true if I have a brokerage account (stocks)? 

3) Does this mean I will never be able to return to the U.S. again? 

4) Will these defaults/delinquencies/possible judgements affect me obtaining credit in another country? Such as renting, etc.

5) I was wondering if they might see me as someone who fled the country to escape the debt, regardless of my personal family issues. Does this make me a financial "criminal"? 

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Sorry to be a bearer of bad news, This what most likely will happen in this situation,  The creditor that suing you would have served court documents to the last known address. By Civil law you do not have to be present for those court documents to be served. The Court would entered "default judgement in Abstaina"  meaning you are unable to show up/ unreachable.  If the creditor finds out after the judgement that you have bank accounts in US, they most likely be able to get a court order for the accounts to be freezed. A reminder a judgement on credit report stays until 10 years. For number 4, it depends on the country your in, each country has it's own set of rules regarding credit. 5, i have seen it happen to people who fled the country based on debt in home country. If creditors can prove intent then most surely yes. 

[sccredit]

Keep in mind that the SOL on these debts is tolled while you are out of the country.  Should you decide to return in 10 years and take up residence the creditors can chase you then.  

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Due to serious family issues abroad, I left the U.S a few months back and my loans are slowly going into default. These loans include an SBA loan, student loans, credit cards, business lines of credit, etc. I have no assets left in the U.S. for them to seize, such as a home or a car. I was wondering if a judgement can be entered against me by my creditors if I was never properly served. When I left the country, my credit score was above 700 and I was not late on anything. I keep reading mixed feedback online. Some say a judgement cannot be entered because I am outside of state jurisdiction; not even a default judgement, because that's when you don't respond AFTER you've been already been served. I have no family in the U.S. and I've lived alone practically my whole life so there is no one there to sign on my behalf either. I'm not sure if the lenders are even attempting to have me served but I'm sure as time goes on, they will. This is the summary of what's going on and here are my questions:

1) If a judgement IS entered against me despite me not being in the country, can they still freeze my bank accounts? How long will it last?

2) Is this also true if I have a brokerage account (stocks)? 

3) Does this mean I will never be able to return to the U.S. again? 

4) Will these defaults/delinquencies/possible judgements affect me obtaining credit in another country? Such as renting, etc.

5) I was wondering if they might see me as someone who fled the country to escape the debt, regardless of my personal family issues. Does this make me a financial "criminal"? 

---

Sorry to be a bearer of bad news, This what most likely will happen in this situation,  The creditor that suing you would have served court documents to the last known address. By Civil law you do not have to be present for those court documents to be served. The Court would entered "default judgement in Abstaina"  meaning you are unable to show up/ unreachable.  If the creditor finds out after the judgement that you have bank accounts in US, they most likely be able to get a court order for the accounts to be freezed. A reminder a judgement on credit report stays until 10 years. For number 4, it depends on the country your in, each country has it's own set of rules regarding credit. 5, i have seen it happen to people who fled the country based on debt in home country. If creditors can prove intent then most surely yes. 

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*Absentia. 

[RobertEG]

An additional consideration is that leaving the U.S. will, under many state SOL statutes, toll the running of the SOL period for any period where the consumer is abroad.  If you return, the state of renewed U.S. residency may still consider the debt to be within SOL.

Finally, if the creditor ultimately sends a form 1099c cancelling any debt, then if the debt is at least $600, it will become subject to taxation by the U.S. as income under IRS regs.  If you remain a U.S. citizen, then you may incur tax obligation when filing your mandatory tax return after receipt of a 1099c.

[zerofire]

Let me add you no longer have to be a US citizen for the IRS to come after you for tax. You are subject to tax by the IRS if you are: 1. In the US on a visa 2. You are a US person. US persons are US citizens and Resident Aliens. So if you do not proactively cancel your permanent residency you are also subject to tax filling while living in another country.