Overwhelmed by Debt? Whether it’s unpaid credit card debt or medical bills, you may feel like you can’t turn to. In fact, you might be so desperate that you think about extreme tactics – like leaving the country. If you are seriously thinking about uprooting your life to avoid debt, you probably have a few questions. How do you start over in a completely new place? And can debt collectors actually follow you to another country?
It might be tempting to leave all of your debts behind. But it’s not that simple – and it’s not always practical. We will walk you through the process as well as some alternatives so that you can make the right decisions about managing your debt.
Can Debt Collectors Follow You To Another Country?
Typically, when you owe money and fail to pay it, a creditor must pass judgment in order to enforce forfeiture. Judgments must be filed in the state where you live. If you move before starting this process, creditors may not be trying to find you and file you in the correct jurisdiction.
Leaving the country would make it harder for creditors. You could simply decide that it is too expensive to collect the debt while living out of the country.
However, if a judgment has already been filed, it may affect your ability to move around until you have paid the debt. For example, a judgment may allow a creditor to exercise a lien on your property or garnish your accounts. While they can’t stop you from leaving the state or the country, creditors can stop you from taking some of your assets with you.
Even if you manage to get out of the country, you may want to return one day. If you ever return to the US, you can still haunt the financial troubles you previously ignored. If you have bad credit, you likely won’t be able to qualify for an international credit card before moving abroad.
What happens if i move to another country?
So if you have a lot of debt, can you solve your problems by moving to another country? Probably not. Here are some examples of what can happen when you move abroad and ignore the debt you owe:
- If you move abroad, you will still be responsible for your student loan debt. You could have dire consequences if you choose not to make further payments on your loans. According to See news, Interest expenses can pile up and your wages can be garnished.
- If you have unpaid tax bills, you’ll want to keep paying them – even after you move out of the country. Ignoring your debt can result in your passport being revoked. This would make it impossible to travel any further. If you moved home and the IRS garnished your wages, it would be difficult to get funding or save the funds necessary to pay your day-to-day expenses.
Why is this strategy not working?
It sounds like an easy fix, doesn’t it? To avoid a collection agency and your debt, just move out of the country. But you might run into a few problems. Most people do not have the resources to start over in another country. Here are some roadblocks you might encounter:
You will likely need cash
You can’t just pack your bags and move anywhere you want. Becoming a legal residence often takes many steps, paperwork, and money.
Many countries require you to have either substantial income or enough cash to buy real estate or investments in order to establish legal residence. If you have a debt problem, you may not have saved enough money.
Establishing credit in a new country can be a challenge
Your FICO score does not match you when you are in other countries. It’s unique in the United States. According to Business Insider, many countries have their own version of a credit score with their own rating systems.
Even if you moved to another country to get a fresh start, you would have to work hard to pay all your bills and take out loans to meet your financial needs. It can also be difficult to get a credit card or mortgage in another country. You may need to save a lot of money instead of taking out a loan or using credit cards to make large purchases.
What exactly happens to your debt when you move to another country?
Ignoring your debt and trying to start a new life in another country can only create more problems for you. While you may not face the consequences immediately, you can face additional fines and interest upon your return home.
Returning to piles of unpaid debt can cause more problems than dealing with the debt upfront. Instead of running away, develop a repayment strategy to get out of debt.
Here’s what to do instead
- Take the time to outline all of your debts.Make a list of all debts so that you have a clear picture of what debts need to be paid back. It helps you stay organized and allows you to create a plan of attack.
- Keep paying your bills.Ignoring your bills won’t help, and late fees and interest will keep adding up. Instead, keep paying as much of your bills as you can.
- Make a budget.Not sure how to approach your debt? Start on a budget. That way, you can use your income as productively as possible. First, focus on bills and expenses that you have to pay.
- Think of a long-term repayment strategy.You might feel overwhelmed with all of the debts you owe. Relieve your stress levels by creating a long-term plan that works best for your situation. For example, you might consider consolidating your debt.
Don’t run away from your guilt – make a plan
Running away from your debt could be terribly tempting. But tackling your debt is probably better in the long run. If you are struggling with debt and find that it is negatively affecting your bankroll, then you should sign up for ExtraCredit. This solution helps you monitor and manage your credit and offers exclusive discounts on credit repair services from one of the leading credit repair providers.
The Post Office Can Debt Collectors Follow You To Another Country? first appeared on Credit.com.