Overseas question

[cm23]

Hi, my wife who is a US citizen has amassed a lot of debt, mainly medical bills and school loans altogether she owes about $40,000 she consider filling for bankruptcy but she needs to be present for the court hearings which isn't possible at the moment. She'd like to clear the debt but it's just too much and she haven't got the money.

My question is what would happen if she didn't pay any of the debts? After we leave Thailand we'll be living in the UK, she's never going to be living in the states again, so what's the worst thing that could happen?

[HHM]

Even if she filed BK, nothing would happen with the school loans, they can't be discharged in BK.

In reality, if she simply stopped paying, nothing meaningful would probably happen. Eventually, she will probably get sued in the state of her last known residence within the US and they will get a default judgement against her. But that is probably the end of it. It would be rare, indeed, for a creditor or collection agency to attempt to track someone down overseas. But that judgment would appear on her credit report, etc, and I suppose, given the close ties between the US and UK, if someone really wanted to enforce the judgment in the UK, they probably could.

[nc73]

Even if she filed BK, nothing would happen with the school loans, they can't be discharged in BK.

In reality, if she simply stopped paying, nothing meaningful would probably happen. Eventually, she will probably get sued in the state of her last known residence within the US and they will get a default judgement against her. But that is probably the end of it. It would be rare, indeed, for a creditor or collection agency to attempt to track someone down overseas. But that judgment would appear on her credit report, etc, and I suppose, given the close ties between the US and UK, if someone really wanted to enforce the judgment in the UK, they probably could.

Had a meeting with my new lawyer today and I posed the same question. I got the same thing that HHM said from the lawyer. He says they probably won't come after you.

[cm23]

I had a feeling that was the case, thanks for the quick response.

[cm23]

Another question, I've reading about Chapter 15 does this apply to our situation?

[HHM]

Probably not...Chapter 15 applies if you file BK "outside" the US. For example, if your spouse filed BK in the UK (under UK law)...you could file a chapter 15 petition in the US to deal with US creditors.

However, chapter 15 is really designed for multinational corporations (but it can be used by an individual if needed).