Can I Go Bankrupt in the U.S. Even Though I Live Outside the States Now? – Peter

Peter wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

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“Dear Steve,

Used to live in the USA, moved to UK for work with intention of moving back to USA after visa re-issued.

Due to financial climate never moved back to USA. Have an American Express credit card with a very large outstanding balance. Transfering money to the USA every month to pay the minimum, obviously no longer using the card not used it since the first year in the UK. Rates have increased massively in recent year.

What recommendations do you have for me to try to best deal with this situation, given that I no longer live in the USA and still have a debt there which I see litle hope of ever clearing?

Peter”

The Answer:

 

Dear Peter,

I checked with my bankruptcy lawyer friend about your situation and here is what she said:

Elegibility to be an individual debtor under title 11 of the United States Code does not require US residency or citizenship. That said, proper venue for a BK case is set out in 28 USC section 1408.

Therefore this person may file in the district in the US where his domicile, residence (there’s a difference) principal place of business or principal US assets were located for the 180 days preceeding the case filing or the longest portion of that 180 days. I think he’d be okay to file here if he has ANY assets here (bank account, personal property, etc) or any future intent to return here.

Addressing these issues is important. I’m seeing more cases of accounts transferred for collection between countries now. Twenty years ago simply moving to a foreign country killed a lot of debts, no more.

I would use this link to contact a bankruptcy attorney who can properly advise you on how to file bankruptcy in the United States without having to return.

Steve

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  • Steve Rhode

    My opinion would be to file bankruptcy. You are either going to have to deal with the individual debts from abroad or file bankruptcy to deal with them all at once.

  • QueenBee

    I have been living in Europe for 4 years now, but before that I was living in Florida and I was young and stupid I got in debt I have been trying to pay but when my husband got transfer to Europe military base I stop working. I try to file for bankruptcy but lawyers was charging me to much. Anyway now one of the banks or I guess agency is been trying to sue me for a while, they try to take me to court and I ofcourse I couldnt go because the ticket would cost me alot! now I receive a letter in my mom house in NJ because thats where I use to live, saying that the second letter it would be a warrant to enter to my house and take my stuff, stuff that are not mine but my moms.
    I dont know what I should do because the ticket would cost me 1400.oo for me to go and deal with that in court.

    Steve Rhode,
    I need a advice.
    Thank you.

  • http://pulse.yahoo.com/_VBQ4O2UMH7XVSESZLOWRPRNZR4 QueenBee

    I have been living in Europe for 4 years now, but before that I was living in Florida and I was young and stupid I got in debt I have been trying to pay but when my husband got transfer to Europe military base I stop working. I try to file for bankruptcy but lawyers was charging me to much. Anyway now one of the banks or I guess agency is been trying to sue me for a while, they try to take me to court and I ofcourse I couldnt go because the ticket would cost me alot! now I receive a letter in my mom house in NJ because thats where I use to live, saying that the second letter it would be a warrant to enter to my house and take my stuff, stuff that are not mine but my moms.
    I dont know what I should do because the ticket would cost me 1400.oo for me to go and deal with that in court.

    Steve Rhode,
    I need a advice.
    Thank you.

    • http://GetOutOfDebt.org Steve Rhode

      My opinion would be to file bankruptcy. You are either going to have to deal with the individual debts from abroad or file bankruptcy to deal with them all at once.

  • Steve Rhode

    You’ve apparently been sued. You can go to court and probably lose since you can’t make the minimum payments. That will probably result in a judgment against you and a future wage garnishment.

    This article I just published may be helpful to you in your situation.

    Steve

  • Cca20102010

    Hello ,i would like some advice ,yesterday a gentleman came to my house to live me a letter from american express suing me for a debt of 7,400 i will like to said i was a good customer with them after i lost me job i really could no make any payments , so i called those guys and try to settle the amount that i had at that time and they did not agree on that ,i was in a middle of the road , and i had to choose my family or credit cards . i didn’t had any choice i my family first and here i am father of 4 small kids ,no job living under unemployment benefits and government support ,is being a year trying to find a job ,i have a small daughter of 4 years old i could not live it in a daycare anymore cause i cant afford it, thanks god my wife is working and can manage to pay rent ,children and family help me with food stamps i really want some good advice please thanks in advance

  • Cca20102010

    Hello ,i would like some advice ,yesterday a gentleman came to my house to live me a letter from american express suing me for a debt of 7,400 i will like to said i was a good customer with them after i lost me job i really could no make any payments , so i called those guys and try to settle the amount that i had at that time and they did not agree on that ,i was in a middle of the road , and i had to choose my family or credit cards . i didn’t had any choice i my family first and here i am father of 4 small kids ,no job living under unemployment benefits and government support ,is being a year trying to find a job ,i have a small daughter of 4 years old i could not live it in a daycare anymore cause i cant afford it, thanks god my wife is working and can manage to pay rent ,children and family help me with food stamps i really want some good advice please thanks in advance

    • http://GetOutOfDebt.org Steve Rhode

      You’ve apparently been sued. You can go to court and probably lose since you can’t make the minimum payments. That will probably result in a judgment against you and a future wage garnishment.

      This article I just published may be helpful to you in your situation.

      Steve

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