What happens if I don't pay credit card and leave country?
Quick Answer
Moving abroad with unpaid credit card debts may not look like a big deal, especially when you don't have assets your credit card issuers can seize. Nonetheless, your credit score will negatively be affected by your inability to pay the debt. And on your return, you'll be stuck with that impacted score.
You're still responsible for debt if you leave the country. If you stop making payments, it can ruin your credit score, and your creditors could also sue you to potentially garnish U.S. assets and wages.
CBP officers are not enforcers of court orders. And credit card debt is not a jail time inducing offense. So, getting arrested for debt is not something that you worry at the customs or elsewhere.
Typically, a credit score is only applicable within its respective country. If you decide to move to another country, you'll likely need to build a new credit score. Your credit score in the U.S., for example, probably won't affect your score when establishing credit in Germany.
While debt technically won't follow you abroad, you may suffer several consequences for trying to flee from it: you may be sued and have your wages garnished; your credit score will suffer; you may have to pay taxes on your debt. These are just a few consequences of leaving the country with unpaid debt.
In California, there is generally a four-year limit for filing a lawsuit to collect a debt based on a written agreement.
The good news, for our reader and for others in this situation, is that bad debt generally won't impact your ability to enter the U.S. or stay here. In fact, except in rare circ*mstances, you can't be deported because you can't pay your debt.
Failing to pay your credit card debt is not a crime. While not a crime, it does have serious consequences, like we mentioned above. After the lawsuit judgment, it is entirely possible that you will have a very difficult time obtaining loans, credit cards, and even employment.
Consequences for missed credit card payments can vary depending on the card issuer. But generally, if you don't pay your credit card bill, you can expect that your credit scores will suffer, you'll incur charges such as late fees and a higher penalty interest rate, and your account may be closed.
What happens to my debt if I leave the country?
Leaving the country doesn't absolve you of your responsibility to pay your debts. If you stop making payments, your creditor could sue you and garnish your U.S.-based assets. Your credit history will also take a significant hit.
Does credit card debt go away after 7 years? Most negative items on your credit report, including unpaid debts, charge-offs, or late payments, will fall off your credit report seven years after the date of the first missed payment. However, it's important to remember that you'll still owe the creditor.
Some debts, though, such as federal student loans don't have a statute of limitations. Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt.
It depends on the amount of debt and your travel plans
You should definitely hold off on vacations if you're dealing with, say, $25,000 in credit card debt. But if it's a smaller, more manageable amount, you can sometimes afford to be a little more flexible.
Unpaid credit card debt doesn't go away after seven years, but it's possible that no one can make you pay it. Debt is legally yours forever, but state laws on collecting debt limit what creditors can legally do.
The USCIS does not consider an applicant's credit score or financial history when determining eligibility for citizenship. However, if your financial situation leads to issues that could demonstrate a lack of good moral character, such as fraud or deceit, this could potentially affect your application.
Does debt follow you abroad? Although your credit history may not follow you when you move abroad, any debts you owe will remain active. It will be difficult for lenders to take legal action against you if you're living in a new country, but it is not impossible for them to try and recoup the debt.
Your lender will contact you to demand the missing payments are made. Then if you don't make the payments they ask for, the account will default. And if you still don't pay, further action may be taken, such as employing debt collection agents to recover the money you owe them.
Yes, the laws of the country, where the debtor is located, are applied for activities of international debt collection agencies. This is the reason why most international companies choose local representatives for entrustment of debt collection claims.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
Can a 13 year old debt still be collected?
In most cases, the statute of limitations for a debt will have passed after 10 years. This means a debt collector may still attempt to pursue it (and you technically do still owe it), but they can't typically take legal action against you.
Most credit card issuers won't forgive all your outstanding debt, but they will work with you on repaying with a different payment plan. They may also negotiate with you on the total amount you owe if you are severely delinquent.
Bankruptcy. Filing for Chapter 7 bankruptcy wipes out unsecured debt such as credit cards, while Chapter 13 bankruptcy lets you restructure debts into a payment plan over 3 to 5 years and may be best if you have assets you want to retain.
Credit card debt forgiveness is when some or all of a borrower's credit card debt is considered canceled and is no longer required to be paid. Credit card debt forgiveness is uncommon, but other solutions exist for managing debt. Debt relief and debt consolidation loans are other options to reduce your debts.
The bottom line is this: you can't go to jail simply for falling behind on your credit card debt, but you could go to jail if you have a judgment filed against you and you don't follow the court order. Avoid the situation altogether by dealing with your debt collectors before they take you to court.
