Filing for bankruptcy may be caused by many different reasons regardless of you living within the United States or out of the country. However, you may see a more complicated process when it comes to living abroad.
Several rules have been established regarding chapter 7 and 13 bankruptcy for those who reside outside of the country. This is especially true for those without any assets within the US. In order for you to qualify for filing bankruptcy, there are a few things you need to understand.
Knowing If Bankruptcy Is Right for You
When you file for bankruptcy, you need to know if bankruptcy is right for you and that it is based on if assets are involved or owned by you. When you are living abroad and you still have outstanding debt, you may not even have to file bankruptcy because of the fact that creditors will not waste money or time trying to hunt you down.
Besides that, the creditor will need to file suit in the country that are residing in. Not only is this going to be a lot of money for the creditor to pay and invest in, but it is also something that many will not touch.
How Bankruptcy Protection Eligibility Is Established
Under the bankruptcy law, it is necessary to interpret “domicile” in order to establish whether or not bankruptcy protection can be obtained. If no assets are owned, then a judge will make the determination. This will be even more important for the time where you are planning to make a return to the US.
Living Abroad and Filing Bankruptcy
When it comes down to it and you end up living abroad but have assets left behind in the US, then you will likely not qualify for any type of bankruptcy regardless of having assets or not.
The bottom line is that if you do find yourself in another country and have left behind excessive debt in the US. In some cases, you won’t even qualify for Chapter 7 if you don’t have American assets. Regardless of that, you still should not have your debts unguarded. This also means you should not file bankruptcy if you are willing to face your debts by not worrying about defaulting.
In Conclusion
Although creditors will unlikely follow you to collect on your debt, or file an international suit, you may see other penalties that may linger for a long time. In order to be safe, it is best to get in touch with our office today to discuss your bankruptcy options and too see if you qualify.