Teach3r

We need to relocate back to the UK as my father-on-law is v. sick.... We have just got dual citizenship.... we will be handing the keys back on the house (negative equity by crca $60,000 - we bought in 2007!!!!) and also on the car.... I'm not worried about the house as that is whats hapening around the country... but what about the car payments? Is it worthwhile filing bankruptcy? Will this affect us re-entering the States with our USA children? Any suggestions / info would be great.

footiemum

I'm in the same position, facing foreclosure and have a leased car. I am moving back in June and wondering what my best options may be. Hope you get a response!

Teach3r

Not looking good so far... suggestions would be (from my reasearch) to ask for early sales price, acquire another loan out from another bank, pay off original loan, sell car and then pay off as much as pos from 2nd loan...

Looks like we will be using money from the car we own out right to cover the difference .

Keep me up to date with your going ons.

footiemum

Well I'm wondering if I'm better off seeing a credit counselor and wrapping everything up into one giant bundle? I don't want to move home to England and leave my debts in America for others to clean up, but I need to somehow sort out the easiest way to manage the lot.

Teach3r

The car debt cannot be put into same deals as foreclosures - a friend of mine who went through foreclosure etc. and had car repo still has to pay the acr off...

JAJ

So what happens to the negative equity in your house after the bank sells it? Does the law in your state allow them to sue you for the difference?

If you have a source of income and/or other assets then you need to pay your debts.

If you have neither income nor assets your options then become:

1. Ask creditors to settle the debt for less than the amount, if they give you something in writing confirming full and final settlement. Keep that piece of paper for ever, in case a collector comes after you later; or

2. Bankruptcy will generally wipe the slate clean (taking all your assets and income, with exceptions, and clearing your debt, again with exceptions) and allow you to start over at zero.

I would never suggest simply abandoning your debt as that is more likely to come back to hurt you later on. Find a financial counselor in your state experienced in dealing with bankruptcy and related matters.

peterbr

As per my point of view just take twice advice by some best Debts attorney or manage your problems. They give good guideline and give better way to out current problem. I think this is the best way for you.

punktlich2

I am a retired N'Y bankruptcy lawyer. More info is needed to offer an opinion. 1) US state of residence: California & some other states do not allow deficiency judgments. Florida (but only to US citizens, permanent residents & bearers of indefinitely renewable visas) has generous homestead allowance. Texas too has good homestead allowance. Other exempt items: pensions, some annuities & life insurance; tools, for some states maybe a car & gun & Bible.

(A US judgment can be sued on in the English county court, and vice versa. Be careful and always defend cases brought by creditors against you in the old country. You may be able to defeat them on jurisdictional or procedural grounds and it is unlikely a US creditor would sue on the merits (rather than just on a US judgment) in the UK. Although he can, it's usually too expensive and unfeasible to bring witnesses & evidence.)


A US debt discharged in the USA will be unenforceable, uncollectable anywhere in the world. If you file bankruptcy in England, a US debt is not discharged, just unenforceable in the UK.

US Bankruptcy Code specifically prohibits fed, state & local gov't from discriminating against you. Private parties may do so for up to 7 or 10 years. It may be hard to get a subsequent security clearance. Or maybe not: depends on agency. It is irrelevant to immigration matters.

A bkcy-discharged debt, or one forgiven while you are insolvent, does not give rise to US income tax as debt forgiveness income. Otherwise it does, although if you are no longer resident and taxable in the USA this may be irrelevant. (but in certain cases there is "expatriation to avoid tax" presumed, and taxed, if you give up a green card or US citizenship.