QUESTION

Should I bother to file bankruptcy from outside the US or just wait until I move back?

Asked on Jun 17th, 2015 on Bankruptcy - Michigan
More details to this question:
My situation is that I owe ~$10K to Discover. I have been living overseas for several years. I have no plans to move back (but, 5 years from now, who knows). A suit was filed and I was found against. I have no assets in the US nor in my country of residence. (I rent, no car, etc.) So, my questions: 1. Should I bother to file bankruptcy from outside the US or just wait until/if I move back? 2. How does the statute of limitations on debt work in the US? Does it "toll" while I am outside of the country? 3. After it passes what happens? Collection efforts stop but the debt it still outstanding?
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6 ANSWERS

Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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For $10,000 in debt, I would never recommend bankruptcy for anyone. If you want to try to settle this debt, have cash ready to wire if you ink a deal with the creditor & expect to settle for $3,000 - $4,000. If a lawsuit has been filed and a judgment was entered, the SOL no longer applies. The SOL only applies to debts in which a creditor has not sued. The life of a court judgment is much longer than the SOL and it is renewable, giving the judgment, like a vampire, near immortality. While it sits, in accrues interest which can easily double the amount you owe in a very short time.
Answered on Jun 22nd, 2015 at 11:26 AM

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Commercial & Bankruptcy Law Attorney serving Powell, OH at Ronald K. Nims
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The statute of limitations stops a creditor from filing suit after the deadline has passed. Since they already filed the suit, the SOL makes no difference. If you have no plans to return to the U.S., why spend the money. They are unlikely to attempt overseas collection.
Answered on Jun 22nd, 2015 at 12:18 AM

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It is very hard to file a bankruptcy from outside the United States. In most jurisdictions, the statute of limitations is tolled while you are outside the united states. I think you might as well defer filing a bankruptcy until you resume residence in the US. This advice might change if your creditors tried to sue you while you live abroad.
Answered on Jun 19th, 2015 at 11:06 PM

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Bankruptcy Attorney serving Cleveland, OH at Benson Law Firm
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You will have to attend a meeting of creditors locally here in Ohio so you can wait until you return. If enough time passes, your judgment and other debt may be beyond the limitations period and, perhaps, you won't have to file bankruptcy at all.
Answered on Jun 19th, 2015 at 7:44 PM

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Bankruptcy Attorney serving Schenectady, NY
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I would just wait until you are back here unless you stand to inherit some money in the future.
Answered on Jun 19th, 2015 at 7:43 PM

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Appellate Attorney serving Grosse Pointe Farms, MI at Musilli Brennan Associates, PLLC
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A judgment is good for 10 years and renewable for additional 10 year terms. Deal with this. $10k is too small an amount to bankrupt for and if you do the will order payments.
Answered on Jun 19th, 2015 at 7:42 PM

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