Q: Will debt follow you overseas?
I retired in poor health and my wife and I moved overseas leaving behind 133k in consumer debt we can never pay back regretfully. All I have is my small government pension (Fers) and my wife has no income at all. I know the debt collectors are preparing to sue us based on our mail we get from the USA once per month. Should we save up enough money and travel back to file bankruptcy or just let them sue us? We have no other assets but my Fers Pension which is deposited once per month in my US credit Union. Is that exempt? What would your advice be? Thank you.
A: Stay out snd don’t do anything until and unless someone finds you and serves you, which most likely will never happen. If it does, then you may want to come home and file bankruptcy bc most of your assets listed appear to be exempt.
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A:
If you are living overseas and considering whether to address the consumer debt left in the United States, here are some considerations:
1. Debt can sometimes be enforced across borders, depending on the country and the creditors' resources and determination.
2. Federal pensions, like the FERS pension, are generally protected from garnishment for consumer debt, but there may be exceptions, especially if you have funds deposited in a general bank account.
3. Returning to the U.S. to file bankruptcy is an option that could potentially discharge unsecured consumer debts, but it would require you to be present for certain legal proceedings.
4. Bankruptcy could offer a more definitive resolution to your debt issues, but it's important to weigh the costs and logistical challenges of returning to the U.S. to file.
5. Letting them sue could result in a judgment against you, which might complicate future U.S. visits or financial transactions.
6. Consult with a U.S. bankruptcy attorney, perhaps one who can communicate with you electronically, to understand the full implications of filing and to explore the protection of your pension.
7. Examine the specifics of the country you reside in regarding its treatment of foreign judgments and debts.
8. It’s also wise to consider the long-term implications, including any future plans to return to the U.S. or potential inheritance you might leave behind.
Every situation is unique, so tailored advice from a legal professional is vital.
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