Question Overseas and Bankrupt - Any Suggestions

[odium]

First, I am ashamed. I can't say this situation was caused by some extreme emergency - I just was not responsible. I admit it. I know it is my fault. I kept getting offers for balance transfers, checks that I could write for 0% interest for 6 months, etc. I really did expect to be able to pay them - but then things snowballed.

Before you yell at me on the forum for being an idiot - if I did not care - and did not feel some responsibility - I would not be on this forum - and would not be depressed about the situation.

I am broke, broke, broke!

I am from the USA and receive a VA disability pension direct deposited into a USA bank. My family and I moved to an Asian country 3 years ago and have not been back to the states since.

I have a wife and 2 young children.

I know have over $60,000 in CC debt from US banks. My credit lines on my cards were high when I left the states. I have no property or assets in the USA and also have no property or assets where I am currently living. I tried to start several small businesses here but they all failed.

My payments on my cards have now reached more than 60% of my income. I will never be able to pay them off and when I make payments - the balances are reduced by almost nothing. I have never been late but sometimes I robbed Peter to pay Paul.

I am considering stopping payments next month. If I stop making payments - I will have about $1000 extra a month.

If I lived in the states - I know bankruptcy would be an option - but I have not been there for over 3 years. I moved overseas from Florida. I think if I want to declare BK - I have to go back to the states and live there at least 6 months. Going back to the USA is expensive.

Sometimes I feel like I can't even breath anymore. I am so disappointed with myself. I got myself into a big mess! I have to do something or I will be depressed forever. I can't remember the last time I laughed or smiled.

I am a complete idiot!

[APL]

Hey - no one here is going to yell at you or call you an idiot. Thank you for your service to our country.

I don't have any knowledge of Int'l BK laws, but reading your post - I would suggest you stop making the CC payments, and start putting the minimum payment money in the bank or getting things your family needs. If your minimum payments are 60% of your income, that is not sustainable. I made my payments far longer than I could afford it. I used my 401k accounts, my savings, and in the end it still all fell apart and now I have nothing. If you're in another country, with a wife and 2 children to take care of, that needs to be your priority over meeting minimum payments if you're not expecting any significant change in income that would allow you to pay off your debt.

Good luck to you, please keep us posted.

[odium]

Thanks so much for the nice response. I am determined to find a way to get through this. It consumes 99% of my daily thoughts. I understand what you are saying and think I am going to stop making payments next month. If I save money on the side - hopefully some of the creditors will settle with me.

One creditor is the bank where my direct deposit VA check goes. If I stop paying them - they will probably close my bank account - then I will be in deep trouble. I guess I need to always pay this one.

Hopefully I can figure a way out - I don't think I have had one night of good sleep for over 6 months because this consumes my thoughts so much...........

[nokia123]

Thanks so much for the nice response. I am determined to find a way to get through this. It consumes 99% of my daily thoughts. I understand what you are saying and think I am going to stop making payments next month. If I save money on the side - hopefully some of the creditors will settle with me.

One creditor is the bank where my direct deposit VA check goes. If I stop paying them - they will probably close my bank account - then I will be in deep trouble. I guess I need to always pay this one.

Hopefully I can figure a way out - I don't think I have had one night of good sleep for over 6 months because this consumes my thoughts so much...........

If you stop making payments, I would switch banks. I would also after I switch banks make sure my money isn't sitting too long in the bank.

[done11]

Speak with an attorney...since you have no assets and get a disability pension , it is possible that you are protected from anyone garnishing your income. I guess someone could possibly come after any property you have abroad but from what I have read it is a ton of work and not likely to happen. Change your direct deposit to a different bank and move on.

[sunshinepa]

First things first, get a new bank account. Once you have that, get your check put into that account, make sure you have no creditor associated with the bank where the new account is.
If you don't own anything, they can't get anything! Stop making the payments.

Take care of your family first!

Good luck.

[kornellred]

You can't just "move" to an Asian country. You must be married to an Asian, and that makes it possible to actually stay wherever you are, correct? Why did you leave the United States? If you receive a VA disability pension, that means you were once in the Armed Forces and got banged up a bit while on active duty.

Of course, that is irrelevant to your financial situation. Your pension, in all probability, cannot be levied - just make absolutely sure that the US bank that handles your money is completely aware of that. There is nothing else that can be taken from you, should your creditors decide to initiate lawsuits.

As far as feeling bad about getting into debt - the sooner you stop paying your unsecured debt, the sooner you will get over it. It will dawn on you that you are just throwing your money away. It can be put to much better use than servicing debt that will not go away, ever. Fractional reserve banking has made bankruptcy a legitimate enterprise - the unsecured money the banks loan out never results in a subtraction from their accounting ledgers, so adjustments can be easily made to ensure the integrity of the banking institutions. How or why you actually got into debt is irrelevant - unless, of course, you did so with malice aforethought and never intended to repay it.