2 situations

[destin]

Hi. I was talking with my friend and we were not sure what happenes if:

1) Somebody carries a balance of, let's say, 15k $ on few credit cards and this person dies. Who is responsible for that payment (if there is no other things that bank can take over, like for example car, house etc.)

2) Somebody carries a balance of 10, 20, 30k $ and he/she leaves to Mexico or whatever and never comes back? Who is going to pay that. Is there any way to hold that person accountable even outside of the USA?

 

[CalifLawyer]

Hi. I was talking with my friend and we were not sure what happenes if:

1) Somebody carries a balance of, let's say, 15k $ on few credit cards and this person dies. Who is responsible for that payment (if there is no other things that bank can take over, like for example car, house etc.)

2) Somebody carries a balance of 10, 20, 30k $ and he/she leaves to Mexico or whatever and never comes back? Who is going to pay that. Is there any way to hold that person accountable even outside of the USA?

US Law Only - WHEN POSTING A QUESTION, YOU MUST INCLUDE THE NAME OF YOUR STATE​

 

[Debt Guy]

You really should post your state -- some answers are state specific. Some general answers to your questions are:


1) Somebody carries a balance of, let's say, 15k $ on few credit cards and this person dies. Who is responsible for that payment (if there is no other things that bank can take over, like for example car, house etc.)

A. Assuming that no other person is obligated on the debt by signature (a joint applicant for example ) or is obligated by state statute (a spouse in a community property state), then the debts of the decedent are paid from the estate, if any, of the decedent.

2) Somebody carries a balance of 10, 20, 30k $ and he/she leaves to Mexico or whatever and never comes back? Who is going to pay that. Is there any way to hold that person accountable even outside of the USA?

A. Yes. No. Maybe. The answer is very complex. First, when you leave the US, in most states the statute of limitations tolls (or stops running). That means the debt lives forever. Second, you could still be sued in the US and a judgment awarded. Judgements are even nastier and last longer. Third, it is possible to be sued outside the US but you must be sued in the courts of the country in which you reside. That is expensive and complicated and is rarely done. However, with the ever expanding and pervasive credit reporting system, we are moving more and more toward a global credit reporting system. Equifax today includes parts of Europe. It is becoming more difficult to hide from one's credit history.

Finally, I cannot imagine any intelligent person moving to Mexico "forever" just to get out of some credit card debts. Just file bankruptcy and stay home where you can drink the water.