How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
9968427
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

I come from the United Kingdom and now reside in the US. I

This answer was rated:

I come from the United Kingdom and now reside in the US.
I have NOT been bankrupt or never intend to be. I have communicated with ScotsLawPro a few times on my query and seek additional advice/guidance.
I left a debt in the UK which i had difficulty paying but commenced payment again. However after a dispute I stopped paying because i was advised that UK debts were not enforceable in the US and would not affect my credit rating in the US. I have been called today by a debt collection agency in the USA chasing this UK debt. it's been transferred and they tell me that I do not agree to a payment plan it will affect my credit rating in the US. The payment plan is okay and not an issue to me. However if the other one chases it will cause me problem.
The one transferred is with MBNA UK, obviously they have ties to MBNA US but the other one is a UK bank with no ties to the USA. Can they do this and what could happen if I don't comply.I will pay but only if I legally must.
Hello,

A debt may be enforced in the US if a lawsuit is filed and a judgment is entered pursuant to US law in a US court. This is regardless of where the debt arose.

Let me explain.

A judgment rendered in the UK cannot be enforced in the US absent a second US proceeding to "domesticate" the judgment. However, a judgment for a debt that arose in the UK may be enforced in the US if the creditor properly obtains jurisdiction of the US court and prevails in an action in the US court. Residence of the debtor in the US is a basis for jurisdiction in the US.

That said, a UK creditor may file suit against you in the US based upon your US residency and obtain a judgment enforceable against your US assets.

I hope that the information which I provided was helpful to you. However, if I have not fully answered your question, please post me back on this thread with a clarification.


Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER

Customer: replied 7 years ago.

The one with MBNA I fully intend to settle as per the proposal. It's not an issue.

 

however I look at the other one i need to ask the question.

 

How likely in your experience or knowledge would it be for this to be domesticated in the US or indeed the UK creditor filing a law suit against me in the US. Would this be very costly for them to do this. What is the minimum I could do to prevent them taking any action?

 

I am correct in assuming that unless there is a court proceeding it will not adversely affect my credit rating in the US

Hello,

UK creditors typically do not file suit to collect debt in the US unless the amount of the debt justifies the expense and they believe that the debtor has the funds to pay the debt. It is a simple cost/benefit analysis as in any other lawsuit.

The debt can be reported on your credit report in the US. However, you can challenge the debt and likely have it removed from your report if that occurs.
Customer: replied 7 years ago.

okay thanks - only another few questions -

 

1) How long would it take for a UK Creditor to file a suit in the US on this subject.

2)What is the minimum i can do to prevent them from taking action.

I'm willing to offer to pay a minimal amount.

 

To put my cards on the table........ I have been in dispute with these creditors and they have not been very flexible with me and i was told by Scots Pro Lawyer that the debt was not enforcable in the US, so I decided to leave and ignore it, again the advise given.

 

I have a great life here in the US, comfortably financially, getting married next year and

planning to start a family. I refer to question 2 .... I can offer to pay a nominal fee but will not be able to make what they would call minimum monthly payments without it serioulsy affecting the quality of my life. From this perspective if I offered to make nominal payments would that prevent them from taking action.? or do you recommend anything else.

Customer: replied 7 years ago.

one more for you

 

When I get married I will be moving into my fiancee's house, it's her house and her asset , I have and will have no claim on it. in this case will her house be classed as an asset. if so how can i avoid this.

Hello,

Consider not working with the creditor at all at this time. If you make a payment the statute of limitations may begin to run anew. The SOL is a defense to bar old stale actions. I do not know what the SOL is in your case as it would take some analysis and research.

If they file suit against you you can work out a payment at that time.

Your finance's house is not your asset. It is her pre-marital asset. Additionally it is fully protected by Texas homestead law from creditors.
Customer: replied 7 years ago.

so even if they do file suit .....it's not too late to work out a payment plan. ?

 

Thanks for your advise you've been a great help.

 

 


so even if they do file suit .....it's not too late to work out a payment plan. ?

That is correct. And in Texas, wages and homestead are protected.

Thanks for your advise you've been a great help.

My pleasure. Please request me directly if you need additional assistance.

 

Thank you,

FLAandNYLawyer

Customer: replied 7 years ago.

I'm sorry but I have two more question and in need of simplification to ease my mind.

It's good to know that in Texas wages and homestead are protected.

 

So by working out a payment plan will also protect the only assets I have which is my car and household goods?

 

So all in all ..... there is a lot of time and water to go under the bridge before I need to get into a payment plan which in the end would protect any assets I have?

 

How long would it take for something like this to actually register in the US ?

 

 

So by working out a payment plan will also protect the only assets I have which is my car and household goods?

yes

So all in all ..... there is a lot of time and water to go under the bridge before I need to get into a payment plan which in the end would protect any assets I have?

yes

How long would it take for something like this to actually register in the US ?

It may never actually happen. However if it does, you will be served with a summons and complaint and have 20 days to respond.

Please click ACCEPT/BONUS so that I can get credit for my work


Ellen and 4 other Bankruptcy Law Specialists are ready to help you

Related Bankruptcy Law Questions