Will your credit card debt load follow you overseas

Will your credit card debt load follow you overseas?

Posted by: consolidatecreditcard_admin on

If you are drowning in huge debt, you might see running away to a different country is the only option for you. Perhaps, in a different country, you can get a good salaried job or a better living style at a low cost. But, if you are escaping on your own land just to get rid of your debts, beware. You may end up with a more critical financial situation.
Also remember, you can’t eradicate your debts by moving to a different country. You still owe the debt and you’re liable to pay it back. Once you come back, you will eventually be discovered by the process server.

Does debt follow you to another country?

Usually, it is difficult to recover credit card debt outside of the country where the debt is owed. But, the debt still remains unpaid and it doesn’t cease to exist.
However, the idea to escape to another country is appealing to avoid huge unpaid debts. The creditors can’t take legal actions in a country where the debtor has run away.

Here’s what happens to your debt if you run away to a foreign land

Your credit score will drop significantly

If you don’t make debt payments for 90 days or more, your credit score will start dropping severely. Once your accounts get charged-off, it could be difficult to obtain the previous credit score once again when you will come back.

You will get an email from the collection companies

If you move to another country without repaying the debts. Your creditors will sell your accounts to the debt collectors. The debt collectors can send you emails repeatedly if they don’t get you over the phone
So, eventually, your credit card debt can’t follow you overseas. But escaping to a different country is not recommended. Why?

The debt collectors can file a lawsuit in the U.S

The debt collectors can file a lawsuit against you for the unpaid debts. And, if they win the judgment, they can go after any money, assets, savings, and investment account you leave behind in the U.S. They can even garnish your wages if you still work for any U.S-based company.

You can face a foreign lawsuit

The debt collectors or creditors can file a lawsuit in the county where the debt originated. The case will be decided on the basis of your current country. However, most of the times, the collectors don’t do this as the process is extremely expensive. But, if the debt is huge, then they might file a foreign lawsuit against you.

So, eventually, your credit card debt can’t follow you overseas. But escaping to a different country is not recommended. Why?

Disadvantages of moving abroad to avoid credit card debt

Well, moving abroad can help you to avoid the debt load. But this solution has some crucial drawbacks.
Here you go:

You will face trouble when you come back to your own country

Your creditors or debt collectors can file a lawsuit for unpaid debts, which can affect your credit score significantly. Thus, you will face a lot of issues if you decide even decide to come back to the U.S.

You need to have enough cash

The whole process of relocating to another country is stressful and expensive. Not every debtor can afford this solution. You may have to sell your existing house or a land to get the cash, which can be stressful for you. So, if you are ready to sell your house to relocate to a different country, then you may consider bankruptcy to start afresh.

Finding a steady income can be difficult in a different country

Relocating to a different country is not an easy task. You might be able to avoid the credit card debt by relocating to a foreign land but to survive there, you have to buy a house. And, to do so, you need to have enough cash to secure a residency in a foreign land. Moreover, to settle in a different country, you need to have a steady income source. If you don’t have any income source and enough cash in hand, then you shouldn’t run away to a foreign land. This can lead to a disaster.

Establishing credit record can be tough in a foreign country

To stay in a country, you need to buy a house. And, to buy a house, you need to have enough cash. Otherwise, you have to take out a loan, which is difficult due to no credit history. And, remember, establishing a credit history is more difficult in another country compared to the U.S. Moreover, before giving you a loan, your current country can review your credit report. If they understand that you have escaped to their country to avoid the debts, they can deny your home loan application.

So, it is quite expected that, when you are drowning in debt, you may not have the cash to buy a house or build a business in another country to relocate there. So, it is better to leave the idea of relocating. Instead of escaping, you can file bankruptcy and start a fresh financial life in your own country. Make sure you manage your finances well to get back to a robust financial health once again.