What happens if you flee the country to avoid debt?
Technically, nothing happens to your debt when you leave the country. It's still your debt, and your creditors and collectors will continue trying to get you to pay it back. Just as they would before, those efforts may include phone calls and letters.
Your debts don't disappear and you still have an obligation to repay them. However, if your move abroad is genuine, just make sure to be communicative with your credit card issuer and/or debt collectors.
Summary: It is not a good idea to leave the country with unpaid credit card debt. While debt technically won't follow you abroad, you may suffer several consequences for trying to flee from it: you may be sued and have your wages garnished; your credit score will suffer; you may have to pay taxes on your debt.
Running from your debt might seem like a temporary solution, but it's a decision that can lead to a host of serious consequences. Legal action, damage to your credit score, and a snowballing debt burden are just a few of the challenges you may face.
When you move abroad, you'll still need to pay your student loans. You should maintain a bank account in the U.S. and set up automatic payments on your student loans. You may also be able to take advantage of the foreign earned income exclusion on your tax return to reduce your monthly payment.
Many people believe that undocumented immigrants who have accumulated debt and who want to file for bankruptcy will be arrested and deported. However, that actually is not the case.
That said, keeping your head in the sand for a few more years doesn't necessarily mean you're home free. The other risk you take by ignoring your debt is that your creditor — or a third-party collection agency that has taken over your debt — could sue you for the amount you owe, plus interest and penalties.
The debt will likely fall off of your credit report after seven years. In some states, the statute of limitations could last longer, so make a note of the start date as soon as you can.
Under the Fair Credit Reporting Act, in most cases, debts can only appear on your credit report for seven years. After that period is up, the debt can no longer be reported. Also, if you've had a delinquent account on your credit report, creditors can hold the debt against you.
Most negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit score may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.
Can you leave the US if you have student loans?
Can You Move to Another Country With Student Debt? The federal government does not prohibit borrowers from moving abroad when they have student loans. No matter where you live, you can still make your payments. Private lenders also do not have restrictions on where you can live while paying off student loans.
There is no specific age when students get their loans written off in the United States, but federal undergraduate loans are forgiven after 20 years, and federal graduate school loans are forgiven after 25 years.
The only times private student loans can currently be forgiven are in the cases of death or permanent disability—but even in those instances, discharge is typically dependent on your lender's policy.
Your credit score will not follow you to another country, but your financial situation, including your debt levels and income, will still play a pivotal role. Creditors cannot share your financial information abroad and different countries have different standards for assessing creditworthiness.
If your unpaid balance lingers for too long, your account may go to collections, and you could be served with a debt collection lawsuit. The more recent the collection, the more it will hurt your score, according to FICO.
If you don't pay the amount due on your debt for several months your creditor will likely write your debt off as a loss, your credit score may take a hit, and you still will owe the debt. In fact, the creditor could sell your debt to a debt collector who can try to get you to pay.
Perhaps the most common debts that cannot be discharged under any circ*mstances are child support, back taxes, and alimony. Here are some of the most common categories of non-dischargeable debt: Debts that you left off your bankruptcy petition, unless the creditor had knowledge of your filing.
Debt forgiveness can happen in various ways, such as negotiated settlements, repayment plans or government programs. The goal is to help people manage their debts and financial stability.
If an immigration officer determines you have committed tax fraud, it could lead to a denial of an immigration benefit and, in some cases, lead to removal (deportation).
Can I go to jail if I don't pay my credit card debt? NO. You cannot go to jail simply for failing to pay your credit card debt. It is also illegal for creditors or debt collectors to threaten you with arrest or any kind of criminal penalty to try to get you to pay.
How to get rid of credit card debt without paying?
Bankruptcy is your best option for getting rid of debt without paying.
As we briefly touched on, the seven-year rule refers to the fact that negative items on your credit report will disappear after seven years. You acquire negative information by failing to make monthly payments on credit card debt, student loans, your mortgage, and other types of loans.
If the debt is not collected, then the debt collector does not make money. In many cases, although you would think that debt collectors would eventually give up, they are known to be relentless. Debt collectors will push you until they get paid, and use sneaky tactics as well.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
Once you have been blacklisted you will have a bad credit record for anything from 2 – 10 years, depending on the type of listing that you have against you, but even after this period of time, a judgment can be issued against you if you have not paid the money that you owe.
