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    What happens if an illegal alien has huge credit card debts in the US and is deported? Or what if the alien moves to another country like Canada? Will the creditors run after him?
    I know this is about credit and collection issue; but it's also relevant to immigration because one's credit status in the US might affect his move to another country.

  • #2
    What happens if an illegal alien has huge credit card debts in the US and is deported? Or what if the alien moves to another country like Canada? Will the creditors run after him?
    I know this is about credit and collection issue; but it's also relevant to immigration because one's credit status in the US might affect his move to another country.


    • #3
      Banckruptcy Court is not related to Immigration.
      Ask any practicing Attorney if you are in doubt.

      An alien, legal or illegal, LPR or USC must settle the debt by either:

      1. Paying it off.
      2. If unable to pay off- filing for banckruptcy in Court.

      One's credit score or credit record does not affect one's ability to move to another country, but it affects one's ability to get a credit from prime lenders at low interest rates.


      • #4
        Very well said. But, what if one is deported even before he could settle his debts? How can he file BK in another country? For many, they would just ignore the debts since the US creditors cannot find him especially if the debts are not that huge. But, they can always use a third party collection agency to run after the guy. Right?


        • #5
          If one owes 100 million dollars then certainly there would be a big hunt, otherwise forget about it.

          However, it is imperative to settle the debt one way or another.

          If one was deported before settling it and is outside of the country , then one could still pay off the amount owed or contact a backruptcy attorney and ask if it is possible to file the case from abroad, granting attorney full representative rights.

          I am not an attorney.
          Ask the one.


          • #6
            Yup - if you owe 100 million dollars, they will find you. Otherwise - no. If you move to another country, you will have a different Social Security number and your credit will work from that country. They do not use your credit from another country. Just as in the US, they do not use your credit from another country. (There are a few exceptions ie, if you are Canadian, you can request your credit information be used in the US for aquisition of credit and vice versa - but the request must be made and you have to give your Social Security #.) This is one of the reasons immigration can be so difficult - you have to start all over again.

            The moral thing to do is pay off your debts - but if you have no morals or do not plan to come back to the US - you are basically scott free. The cost for a third party agency to track you down in a foreign country is VERY expensive and difficult. Even if they obtain a judgement, they will look for you in the US but rarely will go to another country. US laws do not cover the other country and vice versa.

            This is why criminals leave the country!!! And the Grand Caymans exist!

            You certainly can pay your debts from a foreign country. Contact your debtors and make arrangement for them to take money from an American bank account - you can request payments be deducted from the account and you can make arrangements to transfer monies from what ever country you are living in into that bank account. Many American banks have affiliates overseas. You can make arrangements with your creditors to pay so much on the dollar, or forgo interest payments. They are usually just thrilled you are going to pay somthing.


            • #7
              If his debt is from a major credit card company, I wouldn't bet on him being able to avoid paying, or having a record of his default showing up and biting him in the a** some day. These companies are global these days, and buying up more every day.


              • #8
                Not paying one's credit bills is not a criminal offense but a civil case. Worst scenario is that his credit gets screwed and stays there for 10 years now. But if he's deported from the US and cannot return to the US for at least 10 years, he has nothing to worry about right? There's a distinction between intending to pay and willfully not paying. When one is deported, how can he think about his credit bills in US given the traumatic and painful experience of being removed from the country? However, some major credit card companies have business in other countries. An example is the Capitol One which has branches all over including Canada. So, if you owe them money, then it's hard to get your application for credit card be approved. There's cross referencing. And if you're applying at a department store and its creditor that issues card is the same company that you owe back in the US, you shall be traced and maybe they can pursue the collection.


                • #9
                  Actually, they only use the SS# you provide along with your current name address etc. They do not and canot possibly cross reference every name that comes across their desks. If they could do this, there would be no identity theft! And statutes of limitations are different for every country. (ie Canada works on a 2, 5, and 7 year plan). The credit card company can only act within limitations of the country/state in which they are located.

                  If they can't locate Osama and they have the very besst this country can offer trying to find him, what make anyone think some rinky d i n k creditor will/can locate you for your $2000 credit card debt?


                  • #10
                    But you know what? Listen to this true story. Someone I know migrated to Canada from the US. He had about $15,000 credit debts from one US visa company. The creditor was able to locate him and used a collection agency in Canada to sue him.


                    • #11
                      For owning money to credit cards, you have two perspectives to look at. First, the credit card's ability to collect the debt. The ability is limited to how effective it is able to collect the money owed either in the US or in the country where the immigrant now stays. For instance, in South American countries, it would be very difficult to collect, because of the lack to find the person, while in developed countries it may be far easier. You may also be dealing with the collection laws in that country and the legal processes. Again, less developed nations tend to have a more relaxed law of collecting the debt and far more restrictive of one obtaining the credit. In developed countries it tends to be the opposite.

                      Then you have the perspective of income, that is when the credit card company cancels the debt. Under IRC 61, that cancellation of debt is considered income, generally. Two notable exceptions would be either the person filed a petition under 11 USC or the person is insolvent. This issue may be dealt with the person's next of kin or spouse, who is left holding the bag (figuratively speaking). At that point, and depending on how much the debt is, IRS may take action.
                      "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre


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