Bankroptcy when leaving the country. Is that a good idea???

Question

Im leaving the country. In few month. I wont come back. Leaving for good. I have few credit cards to pay off but no time and money to do so. Im thinking about filing for bankruptcy. Is that a good solution. Cant afford to pay off the debts when im in diffrent country. What shall i do???

Answer 1

Seems like a simple question, but like many questions, it can have a complex answer.

Let me start with the pratical focus on time and money. You say that you don't have time and money to pay off the credit cards. Do you have time to process a bankruptcy? I think not. It's a time-consuming legal process that involves the court notifying all your creditors and allow them to respond. Unless your good at legal matters (I'll assume not) and can use a book from Nolo Press for self-help, you'll need an attorney who will cost you $$$$.

What will you do about credit in the future? A mark on your records will last ten years. Remember that all of the major credit card companies and credit reporting bureaus are international. While they may be unable to collect from you, you will become strictly a cash-based person forever. I don't know what your marital status is, but joint credit will also be affected, even if you are single now and marry in the future.

I see three outcomes, basically:
1) run and live on cash only forever;
2) file bankruptcy and legally clear your debt, but take the time and invest in legal help, even after you've moved; OR
3) call each and every creditor and work out some plan that you WILL be able to accomplish. It's a hassle for them as well. They would rather work out a plan with you that you CAN DO, than have you default. They MAY lower your interest rate or spread the payments or whatever. Of course, if you 'blow' the new plan, the deal will be off and the old rules (or worse) will apply. Before you call any of them, you'll ABSOLUTELY need to review all of the details yourself so that you do not over-commit again. You really need to know what you WILL be able to handle, regardless.

The last part is to ask you, how you will feel deep down inside with following through with whatever choice you make.

I hope that you are going to another country for a very good, positive reason and not to just try to overcome your problems or whatever you are lacking.

P.S. Please keep in mind that financial systems in other countries have different nuances to them. You may want to have a reputation for good credit.

This is coming from someone who has travelled abroad and who has dealt with these issues in the past.

I wish you the best. Please do some soul searching to find your answer. Make the mental effort. Otherwise major regrets could come later, even if they take awhile.

OK, here's my editorial comment. The system is designed to make us all consumers. We are typically only too happy to pledge our lives to the hilt in order to buy, buy, buy. Try cutting down on your consumer 'calories', too. The ironic thing is that becoming a cash-based consumer will force you to do that.

Again, I wish you the best for YOUR life.

Answer 2

If you are leaving for good than don't file bankruptcy just leave before a creditor can get a judgment and clean out your bank account

Answer 3

Seek help before running away.