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NY/MA Attorney
NY/MA Attorney, Attorney
Category: Bankruptcy Law
Satisfied Customers: 16
Experience:  20 years experience practicing Bankruptcy law
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My husband and I lived in the US for over 6 yrs. We both went

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My husband and I lived in the US for over 6 yrs. We both went to school and both have US school loans. My husband is a dual citizen. We are both canadian citizens and have returned to canada to live. We incured a little under 30,000 in US credit card debit while going to school. We have no immediate plans to return to the US to live. What happens if we stop paying on our US credit cards? What can they do?? Would it ever interfere with traveling to the US for vacations or buisiness? We have no plans to stop paying our student loans. Can we declare bankrupcy in the US, while living in Canada? Please advise.
Thanks, Kim
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  NY/MA Attorney replied 7 years ago.
If you stop paying your credit card debt it will not affect your ability to travel in the United States. However, your creditors could get a judgment against you here and then pursue you in Canada. Also, if you ever own any property in the United States, ( for example real estate or bank accounts) your creditors could attach or seize those assets. You cannot file for Bankruptcy here unless you actually live here. For purposes of establishing venue the Bankruptcy law, 28 U.S.C. § 1408(1), requires that a Debtor have spent the majority of the 180 day pre-petition period in the Bankruptcy District in which her/she will file in order to qualify as a resident of that district. By not living in any District, there is no court which would have proper venue. Having said all that, it is probable that, if you simply stop paying your credit cards, your creditor will do nothing more than report you to the credit reporting companies. It is difficult (and expensive) to pursue people who move outside of the USA, and they may not bother.
Customer: replied 7 years ago.
So if I do still have bank accounts in the US to pay my student loans, the credit card companies can take money from my bank accounts... so if I plan to do this I would need to find a different way to pay my student loans???? Is this something that you would advise not to do or OK??? If I stopped all payments today, how many years would it take to clear our credit scores?? We may plan on returning to the US to live in 10 plus years?? Thanks for your time. Kim
Expert:  NY/MA Attorney replied 7 years ago.
You should close your US accounts because they will be easy for your creditors to find. It is hard to say how long this will stay on your credit report. If your creditors bother to sue you and get judgments they could be valid for up to twenty years. If not, they should be off of your credit report by the time you return.
Customer: replied 7 years ago.
What are the chances that they will sue?? No one credit card owed is over $11,000 dollars. Last question, promise :) Thanks for your help.
Expert:  NY/MA Attorney replied 7 years ago.
If I could answer that question I would be able to make a living playing poker in Las Vegas. Usually the credit card companies will not sue you, what they do is package your account with $10,000,000 or so of other ad debt and sell it. Sometimes these accounts are sold five or six times. Everything depends upon the company who ultimately ends up with your debt, some are very aggressive, some are not. If you are outside of the USA it will be more difficult, so there is a good chance that they will not sue you. Even if you ultimately get sued by one of these "bottom feeders" you can usually settle with them for short money. They will pay only 3-7% for your account; if they recover 15% of the debt, they are making money.
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