What happens if a person owes about 30,000 USD in credit cards, then he goes to live in another country.....what happens if he wants to come back to the USA after say, 5 or 6 years?? Is he prosecuted?? Is he arrested at the airport?
2007-09-13 16:17:58 · 4 answers · asked by reuben 1 in Business & Finance ➔ Credit
People do not get arrested for debts. The debts will be charged off and be noncollectable when you return. There is a statute of limitations on debts and length of these statutes vary from state to state. I.e. in Florida it's 4 years for Accounts (credit cards) and 5 years for open notes. The statute of limitations dates commence from the date of last activity such as a payment. These kinds of debts end up being sold to collection agencies for pennies on the dollar - they in turn try to collect even after the statute of limitations has expired, expecting that you are unfamiliar with the law. When this happens - simply send them a cease and desist notice and cite the statute of limitations. When this happens they either give up or try to sell the debt to another collector - in which case you just do the same. Be ware of unscrupulous collectors who re-age your debt by re-reporting it to credit reporting agencies. This is illegal and you have every right to dispute it. Bottom line, if the statute of limitations has expired - you don't pay - even if the collector tricks you into just paying $5 because the minute you make such a payment, no matter how small, you've just moved up the date of last activity to the present, thus making it collectable again. If you tell me what state you currently live in, I'll gladly edit my answer with the statute of limitations for your state.
2007-09-13 16:38:21 · answer #1 · answered by Sven B 6 · 2⤊ 2⤋
I don't think the person will be prosecuted, just give it 15 years to be 100% sure though.
RE:
Not paying credit card debt, going abroad, what happens?
What happens if a person owes about 30,000 USD in credit cards, then he goes to live in another country.....what happens if he wants to come back to the USA after say, 5 or 6 years?? Is he prosecuted...
2014-11-06 03:19:44 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Ditching on your creditors is not a crime. Stupid yes, a crime no.
What will happen is that all the cards will go to the default interest rate (upwards of 45% in some cases), late fees will start to accrue (usually $39 a month) then after a year or so the debts will be turned over to a collection company. A while after that the collectors will sue you and win (now you can add legal fees and court costs). Total debt by that time will be upwards of $60,000 or more. Then after a few more months they will go back and ask the court to enter garnishments, just in case they find you and you ever try to get a job or file taxes in America again.
Depending on the state where you live, the debts will be charged off after 6 years or so (after the court dates, so figure on 8+ years) and your credit ruined for about 10.
So, are you leaving because you want to, or leaving to hide from your problems?
Good luck with all that.
2007-09-13 16:30:42 · answer #3 · answered by Gem 7 · 1⤊ 2⤋
The credit card co. will wait for you "patiently" for up to 7 years, which at least in this state is the statute of limitations on suing for credit card debt. You won't be arrested for what is a civil offense. However, if they find you are back in the states and can locate you, you may be summoned to court. You will be given time to get info.together explaining why you cannot cannot pay back the money owed, plus interest. Of course deliberate credit card fraud is a criminal matter. In that case it would be wise to consult an attorney well before leaving. Good luck.
2007-09-13 16:30:08 · answer #4 · answered by Anonymous · 1⤊ 2⤋
While the debt may not be reported to the credit bureaus, you will still owe the debt. This leaves open the question of whether a court will find you guilty of fraud upon your return (knowingly avoiding debt by moving). If you plan on staying in Indonesia for the remainder of your life, there is probably a good chance you credit reports will not follow you.
2016-05-19 01:06:38 · answer #5 · answered by ? 3 · 0⤊ 0⤋
Credit cards are ripping off everyone with high interest rates that can only resemble "loan sharking" and you're worried about paying them back??? I would not pay them back. When I return the Statute of Limitations will have run out. In that case they can try to sue me but all I'd have to do is cite the Statute of Limitations aand therewill be no judge in the entire country who can legally disagree with me and judge for the plaintiff. He will have no legal choice but to favor the defendant. Lots of answers here and most of them are a bunch of nonsense. Sorry - no disrespect. They cannot and will not extradite you back to the US. They cannot affect your credit in another country - for starters, other countries rate your credit eligibility differently than here. No FICO score in other countries. You will not be chased for life. The fact is that after a few years they cannot legally collect a dime. So..... good luck and have fun abroad. Oh and by the way..... - DO NOT file bankruptcy because that remains on your credit report longer than the Statute of Limitations.
2007-09-13 16:52:15 · answer #6 · answered by Anonymous · 2⤊ 1⤋
I'm not sure how it is in US. Lucky me, I am in the Philippines...no one in history has been put in jail here for having credit card debts (even when you are still in the country). Coz, it will be more costly for them to pay a lawyer than to let go the person from the debt.
2007-09-13 16:26:27 · answer #7 · answered by Nia 1 · 2⤊ 0⤋
Leaving a state can toll (put a hold) on the SOL. Leaving the country certainly will. However, the credit cards can sue within the SOL and get a default judgment. Judgments are good for 10 years and can be renewed.
So when you come back in 5 years or 10 years or 15 years , they'll be waiting for you.
2007-09-13 18:15:58 · answer #8 · answered by bdancer222 7 · 2⤊ 2⤋
neither....
they would probably give him a new credit card.
Remember: Police don't work for the credit card companies
Watch the DVD "Maxed Out" great credit card movie
2007-09-13 16:27:37 · answer #9 · answered by Mark B 2 · 3⤊ 0⤋
For starters your credit will be destroyed. They will garnish any wages they can go after (I don't think they can go overseas though) and they will try to levy your bank accounts through a court order.
If they suspect fraud (which this sounds like it is) they could pursue criminal charges for something ranging from fraud to grand theft. But they would have to prove it and there may not be enough evidence to do so.
2007-09-13 16:25:10 · answer #10 · answered by PRC SD 3 · 2⤊ 2⤋