If you originally set off for foreign shores with excellent loans, you might be worried that your good credit history “will disappear after a few years overseas. Lenders may find it harder to take legal action against you if you’re in another country. Your credit score isn’t immune from international debt either, so repaying everything you owe, even if it’s across the border, is your best course of action. While your credit score may not be international, your debt could be in this case.
What happens if you owe debts in another country?
If you move abroad with unpaid credit card debts, your creditors can send you to collect or file a lawsuit against you. While there is a chance that you can evade loans owed to your creditors, you should know that this isn’t the best thing to do. However, defaulting on your debts by moving abroad doesn’t necessarily mean that the debts you leave behind will disappear. This is due to an international network of tax authorities between European countries known as MARD or Mutual Assistance in the Recovery of Debt.
So if you manage to get across the border, your debt holders are unlucky, aren’t they? They simply take their hat off their head and throw it on the ground, stomp on it with a big “God damn it” and watch you sail off into the distance.
References:
- Will My Bad Credit and Debt Follow Me Abroad? – Consolidated Credit
- Tips for Leaving the Country With Unpaid Credit Card Debt | SoloSuit Blog
Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.