While economic refugees fleeing debt serfdom by moving abroad has not become commonplace, it is gaining popularity as more American debtors get "creative" about how to get out from underneath the crushing weight of debts they can no longer afford. But is it really wise to flee your financial troubles by moving abroad? Probably not.
Below are three good reasons why escaping your debts by moving abroad is not a good idea:
- Your debts will not go away. Even if you move abroad and live in a foreign country your American-based debts will not disappear. A matter of fact, your creditors may have even more power because they will be able to file lawsuits and get judgments with impunity while you're living abroad. Don't think they can sue you while you're living abroad? Think again, creditors can and will sue you in your last state of residence and will try their best to get judgments and grab any U.S. based assets you may have. Don't you think filing bankruptcy or at least looking into your bankruptcy options is a much better move than running and hiding? We think so, bankruptcy will help you discharge those debts, giving you a fresh financial slate whether your move abroad or not.
- While it is rare, some creditors located in foreign countries will order a copy of your U.S. credit report. Even if it is a rare occurrence, why take the chance of having your past credit mistakes ruin your future in a new country. Remember, you can file bankruptcy from anywhere, even if you live abroad. If you cannot pay your debts, then filing Chapter 7 bankruptcy may be the best option for your situation.
- Finally, even if you have no intentions of returning home now you just never know when life will require that you return to the U.S. Don't leave a financial mess behind when you move abroad, only to face it again when you come back years later. If you know that you cannot afford to pay your debts you need to seriously consider your bankruptcy options. If you file for bankruptcy before you move abroad you will at least have a clean financial slate if/when you return home.