Living Abroad - Should I Let My Credit Cards Go into Default

Brokemofo · #1 08-12-2009, 10:30 AM

My question involves collection proceedings in the State of: CA

Hello, I have been living in Germany for over 2 years now and have about 12,000 in CC debt, which originated at my last address in California. I don't plan on moving back to the States again and I'm unable to make the minimum payments to my CCs. If I went into default, could they somehow garnish wages from my account based in Germany or follow me here? Also, if I did go into default, would it stay on my record for 7 to 10 years? And if so, what happens after that period? Does it go away or will the interest have accrued and the debt still there?

I want to take care of this responsibly but again, I am unable to make payments at all right now to them.

Thank you very much for you time,
Brokemofo

Credit repair · #2 08-14-2009, 08:06 PM

I don't think they can garnish your wages paid by a German company, they can obtain a judgment, good for nothing if you are not around and don't have any assets in the US, but certainly it will go on you credit report, your American credit report, the system in Europe is totally different, if you are not planning on coming back for the next 7 to 10 years I don't see a problem. If you give and keep updated your German address to the embassy, register to vote or with the census bureau there is some guys specialized on overseas collections that can find out you phone number an aggravate the heck out of you over the phone but that's about it

Carl.-

Brokemofo · #3 08-15-2009, 12:41 AM

Thank you for the reply. After considering my options, I might go with a debt management plan as sh#%ty as it is because although I am payed directly to my german bank account, the parent company is actually based in Denver, CO, so I think that I would be screwed if I went into default. Since I would be paying slightly less than I am now if I went through a debt management program, I would be payed in full in 4 years / 4 months which is not the best news, but at least it's the honest way to go and it wouldn't be hanging over my head. More imporantly it will give me some peace of mind when I return to the states to visit family and not have to worry about some bench warrant as unlikely as that may be for $12,000.

Thanks again for your reply. I should probably suck it up and do whatever it takes to pay off the debt, which is looking like the best option right now.

Have a great day Carl.

Brokemofo