I’ve got around $5k credit card debt with BoFA and $10k with Amex. I also have $10k in my 401k, which I plan to take out. After taxes, I’ll use what’s left to pay off some of the debt, but I won’t be able to clear it all before leaving the country. What are my options?
If you’re leaving for good, just max it out! Don’t worry about it.
If you come back, well… you might be in trouble lol
If you’re gone for over 7 years, don’t even bother paying it off. The debt will fall off your credit report by then. Use the money for your new life in the other country.
Thanks for the advice! I’ll likely visit the US within those 7 years since I’ve got family and friends here. I’m not coming back to live, though. Does that change anything?
Not really. If you don’t pay, your debt will go to collections. If you visit the US, they may call you, but they can’t do much else. Just make sure you’re really leaving for good— don’t let the debt go to collections and then decide to move back in a year or two, or it’ll make things harder for you.
Debt stays on your credit report for 7 years, but that doesn’t mean you can’t be sued for it. You need to know the statute of limitations in your state, which might be longer than 7 years. Some states also pause the clock on the statute of limitations if you leave the country, so it won’t run out until you come back. You could still be sued later, even 20 years down the line.
That’s not entirely true. Most lenders sell the debt to collections, and the statute of limitations for credit cards is usually between 3-6 years. After that, they can’t sue you. Check out incharge.org for more info.
Some states have longer statutes of limitations than 6 years, and if you leave the country, the clock might stop running. Even if your debt gets sold to collections, they can still sue you and get a judgment. It’s not just about the big banks; debt collectors can be more aggressive.
The statute of limitations protects people from being chased for old debt. It doesn’t just pause because someone leaves the country. If a creditor fails to get you to pay in time, it’s their loss.
Actually, it does stop in some cases, like in Ohio. If you leave, the clock pauses until you come back. And if a creditor gets a judgment before the statute runs out, that judgment can be renewed and collected on for many years.
Okay, but realistically, who’s going to chase someone over $10k after they’ve left the country for good?
It’s unlikely, but possible. Debt collectors can still sue you even if the original creditor doesn’t care. It’s rare, but it does happen.
Fair enough, but I know people who’ve skipped out on bigger debts and never had any issues. So it’s possible to get away with it.
Yeah, I agree it’s possible, and it happens. But there’s always some risk involved.
Do you really think you can just leave and the debt will disappear? They can garnish wages even if you’re abroad.
Wages can’t be garnished internationally like that. Different countries have different laws.
Get another credit card, buy everything you need for your new life, and then leave without looking back.
You can’t just leave and expect to get away without paying. Most banks operate internationally, and they can track you down.
If you’re leaving for good and never coming back, might as well max out those cards before you go.
Are you working remotely for a US company? They can still garnish your wages even if you’re abroad.