Would bankruptcy be a problem?

Anne,

As far as I'm aware of, there is no way of getting out of that meeting. I know that doesn't help, but they won't allow your attorney to speak on your behalf. If you don't show up they will reschedule the meeting. If you miss that next date, your case will most likely be dismissed.  The meeting takes all of 5 - 10 minutes and then you're out of there, very rarely do the creditors show up.  Paying the airfare to the US is a lot of money for a 5 minute meeting.

Ack. I was afraid that was the case. Maybe that's why no attorneys are returning my calls/emails. Blah. Don't know WHAT to do about that. Going for a meeting is totally out of the question. Waiting until we go back means waiting a good year and my cc is already in collection. I need to win the bloody lottery....

I work for a financial services company and everyone is correct...your US credit history does not follow you here.  Even though Experian and Equifax are the biggest names in the credit reporting field in both countries, they do not share country information.

Not sure how much debt you are in but if you are hesitant to claim bankruptcy in the US....just remember that once you are making money over here in the UK....for every £1 that you make at the moment it turns into $1.88....almost two for one...so its easier to pay off your US debt. I only say this because I am taking advantage of the exchange rate to not only save to move back to the US but to pay off those terrible credit cards!   

What's the best way to pay them off from there?? Do you convert currency, or have a US account, or what??? I'm trying to figure that one out!

That sux, Anne, cuz seriously the 'meeting' lasted about 5 minutes.  I had gotten all worked up about it, but it was nothing.  The creditors never showed up, my attorney just rifled through some papers. 

I might be mistaken, but wasn't there a change to the bankruptcy laws passed this spring?  I thought there are certain portions that you can not wipe out any more like medical bills and some loans.  I don't know all the details, but if you thinking of using bankruptcy to clean everything us before you move, I don't think that will work any more. 

Does anybody know any more about this?

That sux, Anne, cuz seriously the 'meeting' lasted about 5 minutes.  I had gotten all worked up about it, but it was nothing.  The creditors never showed up, my attorney just rifled through some papers. 

Bah. That totally figures. I would SO love to do it and then not have this all hanging over my head, but I'm at a loss of what to do. I may try to get things rolling again later in the summer as dh and I are going for a visit at the end of September - but the timing would have to be just right 'cause there's no way I can afford to go again - the meeting would have to happen while I was there anyway....  

I know you can't default on student loans at all. Not sure about anything else, though I DO know that the laws have in fact changed pretty recently. I'm only interested in declaring re. a couple of enormous credit card debts.

DH would LOVE to live in Calif. for a while - I'm not at all keen, but coming back to a bunch of debt before being able to declare bankruptcy is one (of many) reasons for my not wanting to go....

I used to have a good link outlining the new law changes in simple terms, but I can't find it now. The most important info is if anyone is thinking about filing for bankrupcty, you need to do it before October 17, 2005 when the new law goes into effect. After that date, getting a Chapter 7 ('Fresh Start') bankruptcy will become virtually impossible. If you have the ability to pay at least $6,000 of your total debt over 5 years, you will automatically be put into a Chapter 13 repayment plan.  If I can find that link, I'll post it.

I used to have a good link outlining the new law changes in simple terms, but I can't find it now. The most important info is if anyone is thinking about filing for bankrupcty, you need to do it before October 17, 2005 when the new law goes into effect. After that date, getting a Chapter 7 ('Fresh Start') bankruptcy will become virtually impossible. If you have the ability to pay at least $6,000 of your total debt over 5 years, you will automatically be put into a Chapter 13 repayment plan.  If I can find that link, I'll post it.

    

Thanks for the heads up, tanis!  Mine was for medical debt, divorce and a long period of unemployment after dot.bomb.  My mom's got friends whose dependent children have been in accidents and needed mulitple surgeries/treatments and just their 'share' with good insurance was in the tens of thousands of dollars  .

Out of curiosity, tanis, any idea what happens to folks who had debts and just left?  I know a dual citizen who racked up some serious credit card debt, but went back to Europe (he has no intention of living in the US again and doesn't visit, as his family is all in France again).  This was about 10 years ago he left. 

Out of curiosity, tanis, any idea what happens to folks who had debts and just left?  I know a dual citizen who racked up some serious credit card debt, but went back to Europe (he has no intention of living in the US again and doesn't visit, as his family is all in France again).  This was about 10 years ago he left. 

I'm not sure. I've looked around for anything relating to the US citizen/foreign resident quandary and have come up empty. There probably is something in the laws somewhere but I haven't waded through the whole thing yet. Right now it's pretty simple because you don't have to provide a lot of stuff, just put it on the schedules and off you go. Under the new laws, you will have to submit wage slips, last 3 years worth of tax returns, bank statements, etc. plus you have to attend credit counseling before you are even allowed to file.  The best thing to do would be for him to contact a bankruptcy attorney and see what the options are.

I agree.  Munchie, if you're reading and still considering bankrupcy, now's the time to go for it. 

I didn't have to provide much, tanis.  Just my 'assets' - which were none as I owned no property, had no savings or investments, and was driving one of my boyfriend's cars.  My debts.  And my income - which I didn't have b/c I was unemployed. 

TBH, the biggest stress was before I finally contacted an attorney and got the ball rolling.

Now that I know about the deadline I will have to bring it back up to hubby. He had stopped thinking as he thought in the end it would be to hard to go through. I just worry as we have a house and are not ready to go back to the UK for the time being.

I was able to get a UK American Express card just after moving over here, solely based on my having a US Amex card. So that is one case where credit sort of does transfer over.

Well, I was able to get two credit cards here and I had a bankrupcy in the US.  No problems at all.  Been able to get loans as well. 

As for people leaving the U.S. and leaving debt, there is a statute of limitations on the debt.  Limitations vary by state.  Here's a helpful website about U.S. debt:  http://www.fair-debt-collection.com/  If you're outside of the statute of limitations, there's not much they can do.  Of course, you'll not have a clean reputation with the company you defaulted on, but they don't have much to stand on after the statute of limitations has expired.  I think there are exceptions for things like student loans, child support and a few others. 

Here is a website with the text of the Fair Debt Collections Practices Act:  http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

I've had to deal with this myself, having had debts run up in my name by the ex.  I paid everything possible, but had to just let others fall by the wayside.  My debt trouble started in 1992, and my credit reports were clear when I bought my car in 2001.  Even if you can't pay them all off, they won't haunt you forever--although it felt that way for me at times.