Moving abroad while in a Chapter 13

[TooMuchCredit]

I may have an opportunity to move overseas. I am 1 year into a 5 year Ch. 13. My car is included in my Ch. 13. I also am stripping my 2nd mortgage.

They've been applying my entire payment to the car, so if I sell it I would get the balance. Of course I would have to go through my lawyer to get permission to sell it. I would use the proceeds to buy a new car overseas.

The house is tricky. The strip doesn't really take effect until the plan is complete, so the 2nd is still an issue. I guess I could work with the lawyer to see if the 2nd will allow a sale and just be happy with the amount they are going to get through the plan.

The other option is to just rent out my house. But if I don't get a renter, I could be in a pinch.

When I leave my current employer, I could cash in my 401K and pay off 3/4 of my 1st mortgage. The tax penalty would not make that attractive though.

I also would have to figure out how to pay the trustee. I will not be paid in dollars, so I might have to wire funds to my bank in the US, let them convert, and then pay as usual via cashiers check.

Another option is To walk away completely and let the case be dismissed. But then I would run into collection issues when I come back. The company i would work is based in the us as well and would be afraid my wages could be possibly be garnished.

Decisions. Decisions. It's all very preliminary. The opportunity may fall through, but i am just trying to get my ducks in a row in case it happens.

[Flamingo]

I would assume you would be moving overseas due to a higher paying job or better financial opportunity. All that would have to be taken into consideration also as to the outcome of all this. Since one cannot base a Chapter 13 on events that have not yet taken place since you have no paperwork as to costs, finances, payroll, etc. of your scenario, until you get something firm in hand that this will actually take place it is difficult to advise as to anything. I would suggest that as soon as you have something definate on this to speak immediately with your attorney because even though you would be moving overseas, you are still a US citizen and responsible for payment of your Chapter 13 and if your income increases while overseas, a lot has to be taken into consideration. Best of luck to you...

[walkthaplank]

Are you sure that you will be able allowed to move to this other country? Many western countries won't grant a visa to a person if they have too much debt. We had some friends who had borrow money from parents to pay off a lot of debt before they were allowed to move to Canada.

Something to be mindful of anyway.

[BigJohn]

How long do you plan to be out of the country?

Will you get a work permit?

[TooMuchCredit]

I would be getting a permanent visa. I would be their indefinitely. I see nothing in the visa application information that indicates they do a credit check. You have to rpvide a police record check but bk/debt would not be on that.

[shark66]

Are you going to be away past the SOL on your unsecured debt?

BTW, most western countries have absolutely no interest in your financial situation as long as your job pays the bills in your new location. Credit checks/reports - at least in the sense they are being (ab)used in the U.S. are completely foreign to the most of the civilized world...

Good luck.

[TooMuchCredit]

Are you going to be away past the SOL on your unsecured debt?

BTW, most western countries have absolutely no interest in your financial situation as long as your job pays the bills in your new location. Credit checks/reports - at least in the sense they are being (ab)used in the U.S. are completely foreign to the most of the civilized world...

Good luck.

No, not past the SOL and the company's main HQ is in the U.S. so I would still have to worry about Creditors pursuing me and garnishment. So I do not want to put my Ch. 13 at risk.

This is an opportuity that will not present itself again. I am about to just quit my current job regardless as the pressures are just no longer worth it.

[shark66]

I don't know whether the location of company's HQ would make a difference...but am very tempted to say "no".

In my limited experience, if you're being paid over there it's next to impossible to have your wages garnished by a judgment from here...a lot of stuff will vary depending on the actual country in question, but for the most part that is the bottom line...even issues like child support don't cross borders easily...

Good luck.

[BigJohn]

You might want to check if work permits are required in the foreign country.

If you have some place in the US to call home, so it appears you are in the US, you might be able to dodge the creditors.

[nozar]

Very curious how this turned out if OP is still around.

I'm in a similar predicament, and was told that the Statute Of Limitations "tolls" (is put on pause) if you leave the state.

[justbroke]

nozar re-opening an old thread is generally prohibited. You are better off to open a new thread and just "mention" the original poster using the @ symbol.

As you may know, leaving the jurisdiction of the court will toll nearly all debts.