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Brit in New York (10yrs) - Crippling credit card debt - Need help (Bankruptcy/Return to UK)

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dan_UKinNY

New member
I'm a British citizen (early 30's) living in New York with crippling credit card debt - I'm in a terrible state and desperate for a solution. I need to move back to the UK (permanently) in the next few months - but I don't know what to do. Please help!

What are my options if I'm unable to manage the debts -
- Bankruptcy?
- What would happen if i just walked away? (not that I want to do that)
- If I'm in the UK and cant pay - can they chase me in the UK and collect the debts from me there?

A bit of background/detail:
I've been living/working in New York for the past 10 years. I earn a relatively good salary, but over the past 10 years, much to my shame, the reality has been that time I've been gradually spending beyond my means - without realizing the precariousness of my financial situation and the compounded burden of ever higher interest charges and payments.

Current Unsecured Debt (I've never missed a payment):

Credit card debt ~$50,000
Consolidated loans - $25,000

Monthly interest/payments:

Interest - $1,500 per month
With monthly payments of about $2,800

I would be so very grateful for any help or advice anyone can offer.
Thank you!

Dan
 


FlyingRon

Senior Member
Best bet would be to speak to a bankruptcy attorney. They can start this if you are residing in New York at the time the case is filed, even if you subsequently leave.

Once you stop making even the minimum payments, your credit will be trashed. Heading to the UK won't cure that. If you walk away, eventually, you will be sued. If you ignore the suit, they'll get a judgment against you. Yes, collecting it from you if you are in the UK and have no US assets iss going to be difficult.

However, since you seem to not be insolvent here as you're making the minimal payments, I'd suggest a non-profit debt counselor first.
 

Mass_Shyster

Senior Member
I had a client that I helped with a bankruptcy. At one point he had a large credit card debt with bank A. He did all of his banking at bank B. Turns out Bank A bought Bank B. The agreements he signed with both bank A and bank B allowed bank A to withdraw the money owed from his account at the former bank B.

Fleeing to the UK may or may not prevent your creditors from getting their funds. If your debts are discharged in bankruptcy, they cannot come after you.

Out of curiosity, what is your income?
 

dan_UKinNY

New member
Thank you both - I've arranged to speak with a debt counselor and am doing everything I can to cut out unnecessary spending etc.

My current salary is $135k - which I appreciate isn't a small amount; however living costs in New York City (rent: $2900 p/m, high cost of food/groceries, transport etc) plus the relatively high tax rate, leaves me with a much smaller / nonexistent disposable income.

I've taken a look at Chapter 7 / 13 bankruptcy, but I believe my earnings are too high for chapter 7.. though would need to look into how 13 might work. I've been utterly stupid and been trying to tred water for several years now, all the while slipping deeper and deeper into the hole.

The likelihood, is that due to family circumstances with my father back at home... I'll likely need to move back to the UK permanently in 6 months. If I were to lose my job here in the US - Would I be able to get some sort of protection from bankruptcy?

I hope I'm being clear and coherent here... Just so worried, don't know what to do and so ashamed of myself!
 

HighwayMan

Super Secret Senior Member
My current salary is $135k - which I appreciate isn't a small amount; however living costs in New York City (rent: $2900 p/m, high cost of food/groceries, transport etc)
Maybe in Manhattan, but not in the outer boroughs. You can spend a lot less than $2900 a month for an apartment. Transport? Expensive? How so? Public transit is relatively cheap.
 
The big credit card companies have records world wide.
I moved to the US in 96 from London and all I did with my cards (Visa & Mastercard) was change my address. Even though the cards were issued via Barlcays in London nothing else changed.
Get an attorney because you can't run away from debt that easily anymore and your credit score, or lack of, will follow you.
 

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