Credit Card debt

Little advise needed here,my sister is moving to Australia for indefinite period of time.She has some credit card debt here in the US (probably in 20-30K range),she is unable to pay it off right now is wondering if the CC companies or debt collectors will chase her in AU.What could possibly happen while she is in AU,can her wages be garnished,etc?
thanks in advance

Originally Posted by Vault

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Little advise needed here,my sister is moving to Australia for indefinite period of time.She has some credit card debt here in the US (probably in 20-30K range),she is unable to pay it off right now is wondering if the CC companies or debt collectors will chase her in AU.What could possibly happen while she is in AU,can her wages be garnished,etc?
thanks in advance
She doesn't plan to repay her debts? Has she talked to the cc companies to work out a repayment plan?

Let's just say that she is not able to make any payments,at this point,she wants to know what may happen to her.I do not know whether or not she will make payment,maybe at some point in the future,but is it possible that CC companies may sue her even if she is not in the country or just chase her in a different country?

They won't chase in her in another country, but if she comes back to the US, her credit will be ruined.

They will throw her in debtor's prison no matter where she is located.

Originally Posted by teddieriley

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They will throw her in debtor's prison no matter where she is located.

We can only wish this still happened.

Basically, repo guys will come and claim anything of value possibly. Her credit will be ruined and wages possibly garnished. She should look into filing for bankruptcy, it's the in thing.

I still don't get how people can get $30,000 in credit card debt. At what point does someone go," well, horrible 18%+ high interest rates without a means of repayment is the thing for me!"

It is likely a good idea (though a bit late) to seek a financial planner and/or bankruptcy attorney. Even thought it is painful to actually face the problem, this will be much better if she does so early. She could at least go to AU knowing there is less uncertainty back home. (of course it may be with horrible credit) Bankruptcy, however, may not be easy; the ability to get a total discharge has become more and more difficult.

I would recommend against just letting the cards go. Usually the card companies will let the interest accrue for a period of time. Then they will cancel the cards and sue. Once they sue, she'll have to appear in court. If she does not appear (i.e. in AU) the companies will take default judgment against her. Then they may even record these abstract judgments around your state to try to foreclose on property she owns. (may not be an issue if she does not have property or has no credit to buy property). The judgment will usually last 10 years (often renewable).

Of course this is all the worst case scenario. But she should definitely consult some financial and legal advice before simply leaving the country. Especially if she isn't 100% she can stay abroad.

Good Luck.

Originally Posted by jdcpa

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But she should definitely consult some financial and legal advice before simply leaving the country. Especially if she isn't 100% she can stay abroad.

Good Luck.
+1. She should consult with an attorney before she leaves the country. Some effort to handle this now would help in the long run.

Originally Posted by Vault

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Let's just say that she is not able to make any payments,at this point,she wants to know what may happen to her.I do not know whether or not she will make payment,maybe at some point in the future,but is it possible that CC companies may sue her even if she is not in the country or just chase her in a different country?

Really?

Can she make cellphone payments?

I'd file bankruptcy, might as well get out it out of the way so you have the chance of getting some credit later in life..

You hear of people in much worse shape than $30K, why is "your sister" so against paying it down? It doesn't have to be paid off overnight. Live inexpensively for a year, then move on.

Originally Posted by Zintintin

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I still don't get how people can get $30,000 in credit card debt. At what point does someone go," well, horrible 18%+ high interest rates without a means of repayment is the thing for me!"

lol

Originally Posted by Pennglock

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You hear of people in much worse shape than $30K, why is "your sister" so against paying it down? It doesn't have to be paid off overnight. Live inexpensively for a year, then move on.



lol
With this approach the cc company may even forgive part of the debt. It seems to me that if she makes an effort to work with the companies, that they'll work with her and she'll be better off in the long run.

"your sister" is a marsupial.

Could you please post her information so that everyone here knows to never take her at her word?

As said above, her credit will be ruined. I don't think they can do anything across borders, but if she ever comes back here she'll have to deal with it. The cc companies aren't just going to decide to forgive tens of thousands of dollars in debt simply because she's not around for a while.