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What if I owe credit cards (25k among 9 cards) and I want to go abroad to work for several years. I have paid these cards for some time and recently stopped, I had the intention of paying but I am drowning now, so the fraud issue is out of question. I have no property, no car in my name, no stocks, no assets, just a paycheck every other week and hardly any money left over because of the cost of living and all the debt that is like a domino effect since I haven't paid for a few months, there is no way I can find the money to get back on track.
I know that the debt will be there if I leave, passed to collections, and I can be sued, and that there are statue of limitations. When I come back I can deal with all of this. I have paid minimums for a few years, so there is no fraud here, I didnt just get these cards and rack them up and want to bail.
The problem is that I am worried that due to my extended absence, the court will serve me and say that I was served (they just publish it in the paper, or leave it at your door and say you were served) and then a judgment is issued due to default. Then they subpoena you from what I understand for "discovery" to see what assets you have. I hear that this is the one where if you don't show you are in contempt and an arrest warrant is issued??
So, in a nutshell, not paying your unsecured credit cards and leaving town for a few years = jail.???? So am I stuck here in Florida? I cant move abroad? Can anyone get a concrete answer to this? I have found nothing on the net.
Thanks!
I tried searching and couldn't find much, just stuff on how credit ratings will be ruined when you come back, also the statue of limitations, liens, and that there are no debt prisons, but I could not find anything or anyone's experience regarding not answering a summons and being in contempt of court while out of town...can you provide any links? I understand that you simply cannot go to jail by defaulting on debt but what if you are sued and not in town and fail to respond to 2 subpoenas like I stated above in my original message even though you are not served properly. A judge can say you would have lost anyway, but I am wondering if you can be in contempt of court if you are not served properly (being out of town). Thanks!!
They will go after your bank accounts.
Don't know if you will have a bank account overseas or keep one in the states. I know someone who had this happen but they lived in the states.
They filed bankruptcy after this. Problem solved.
And BTW, this person was elderly and was in this debt through no fault of her own.
If you have a definite opportunity to earn money abroad, I'd do it without even thinking about it. If it will be a while before you can start paying the debt again, I'd definitely open a couple foreign bank accounts, preferably anonymous ones, to protect your money while you get back on your feet. You could even set up a foreign corporation to give you more anonymity, although it might not be worth it depending on the amount of money involved.
Just make sure you stay on top of your U.S. income taxes!!
What if I owe credit cards (25k among 9 cards) and I want to go abroad to work for several years. I have paid these cards for some time and recently stopped, I had the intention of paying but I am drowning now, so the fraud issue is out of question. I have no property, no car in my name, no stocks, no assets, just a paycheck every other week and hardly any money left over because of the cost of living and all the debt that is like a domino effect since I haven't paid for a few months, there is no way I can find the money to get back on track.
I know that the debt will be there if I leave, passed to collections, and I can be sued, and that there are statue of limitations. When I come back I can deal with all of this. I have paid minimums for a few years, so there is no fraud here, I didnt just get these cards and rack them up and want to bail.
The problem is that I am worried that due to my extended absence, the court will serve me and say that I was served (they just publish it in the paper, or leave it at your door and say you were served) and then a judgment is issued due to default. Then they subpoena you from what I understand for "discovery" to see what assets you have. I hear that this is the one where if you don't show you are in contempt and an arrest warrant is issued??
So, in a nutshell, not paying your unsecured credit cards and leaving town for a few years = jail.???? So am I stuck here in Florida? I cant move abroad? Can anyone get a concrete answer to this? I have found nothing on the net.
Thanks!
I've never heard of someone going to jail for failure to pay credit card debt, or any debt...I think ususally what happens is that you will get served and if you do not respond or if they can't find you, I believe the collection agency/law firm will just hold on til they can get ahold of you....after while, I think the firm can get a judgement against you, which means basically that you lost the case(but really you didn't lose anything because there was no case to be won by you). At this point, they'll try to seize your assets, etc...and you will most likely have to pay them or file for bankruptcy.
I guess really, there's nothing to be won or lost by you going overseas somewhere as is right now...but you betta bet your a$$ that upon your return, you will return to the same debt/collectors so the problem will still be there, just matter of how you are going to deal with it. But I don't see that any judge will throw you in jail. If you owe taxes, that's diff. story but for cc debt, no.
I've never heard of someone going to jail for failure to pay credit card debt, or any debt...I think ususally what happens is that you will get served and if you do not respond or if they can't find you, I believe the collection agency/law firm will just hold on til they can get ahold of you....after while, I think the firm can get a judgement against you, which means basically that you lost the case(but really you didn't lose anything because there was no case to be won by you). At this point, they'll try to seize your assets, etc...and you will most likely have to pay them or file for bankruptcy.
I guess really, there's nothing to be won or lost by you going overseas somewhere as is right now...but you betta bet your a$$ that upon your return, you will return to the same debt/collectors so the problem will still be there, just matter of how you are going to deal with it. But I don't see that any judge will throw you in jail. If you owe taxes, that's diff. story but for cc debt, no.
Yeah, I agree. I thought about this a little longer, and I find it hard to believe that someone could go to jail for private debt. Just make sure you keep up on your taxes and then go wherever the money is. If it's here, stay here. If it's abroad, go there. There's also nothing to stop you from staying overseas permanently. You can certainly pay U.S. debts from abroad and maintain a U.S. credit rating - just in case you want to move back someday or want credit for U.S. assets.
It sounds like the OP is making this look like a more dire situation than it is.
Thanks for the awesome replies instead of being flamed and bashed! I really appreciate it!!!!!
So, how long before they sue me if they decide to. I defaulted end of June, beginning of July from the original creditors such as Capital One, HSBC this year on 8 different cards the highest balance in the 4k range for a total of 25k among the 8 cards. Will I be sued in 1 year if they decide to? I plan to leave abroad mid next year. Anyone know the average time from first default date to civil summons/lawsuit at your door??
THANKS!!
What if I owe credit cards (25k among 9 cards) and I want to go abroad to work for several years. I have paid these cards for some time and recently stopped, I had the intention of paying but I am drowning now, so the fraud issue is out of question.
No it isn't. The fraud issue relates to information you provided to obtain credit.
That is a common tactic now used by creditors in bankruptcy court. If you misrepresented the facts when completing a credit card application, you have committed fraud, and the debts are thus excluded from bankruptcy, and then you are forced to pay them through liens, judgments and wage garnishments.
Quote:
Originally Posted by klf2008
I know that the debt will be there if I leave, passed to collections, and I can be sued, and that there are statue of limitations. When I come back I can deal with all of this.
Okay.
Quote:
Originally Posted by klf2008
The problem is that I am worried that due to my extended absence, the court will serve me and say that I was served (they just publish it in the paper, or leave it at your door and say you were served) and then a judgment is issued due to default.
The solution to that is to move and leave no forwarding address. Better yet, on your way out, take a Greyhound to Texas, stop for a day or two and get a driver's license (use a clever bogus address), then get back on the bus and head to JFK. If you already live in Texas, then get off in Philadelphia and get Pennsylvania driver's license, then head on to JFK (it's usually cheaper to fly out of JFK to Europe and Africa than it is from elsewhere).
Quote:
Originally Posted by klf2008
Then they subpoena you from what I understand for "discovery" to see what assets you have. I hear that this is the one where if you don't show you are in contempt and an arrest warrant is issued??
In order for service to be good service, you have to live at the address. Publication is typically limited to probate action, although a few states do permit service through publication.
Quote:
Originally Posted by klf2008
So, in a nutshell, not paying your unsecured credit cards and leaving town for a few years = jail.????
No. If you're served by the court for a Debtor's Examination/Hearing, it will be done by a court appointed process server, probably a county sheriff's deputy, who won't waste his time serving at the wrong address. As soon as he realizes you don't live there, he'll inform the court and the case will be dismissed for want of service and/or for want of prosecution.
Quote:
Originally Posted by klf2008
So am I stuck here in Florida? I cant move abroad? Can anyone get a concrete answer to this? I have found nothing on the net. Thanks!
No. If you have $1,200 laying around I'd recommend getting certified to teach English as a second language, as that would give you an additional opportunity to live and work abroad.
Since you're in Florida, I'd take a bus to Texas, get a driver's license (which will make you a Texas "resident" and allow you to take advantage of the 4 year statute of limitations, plus state collection laws) and then head to JFK and fly out.
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