Legal Question in Credit and Debt Law in Australia
International Student Loan-Chasing
My husband and I moved here from Australia. I hold dual citizenship, for both here and there, and my husband is a Resident Alien here. I just completed a Master's degree in New York, for which I borrowed an outrageous sum of money, since consolidated to make the payments as low as possible. (We're artists, we barely scrape by). We had thought that the move to New York would be permanent but we now find ourselves terribly homesick. We are going home next year, but are worried about my loan; with the current exchange rate (around 60%)even the lowest repayment scheme offered would make life awfully difficult. If we were ever to default on my U.S. loans, could scary people come after us there? If so, what would be the perameters of their power? Also, could a default make it difficult to ever come back here in the future? And say, for example, I have an exhibition here someday and sell some work: would any future money made here vanish into thin air?
Thanks,
Splitsville
4 Answers from Attorneys
Re: International Student Loan-Chasing
It is possible for USA judgements to be registered and enforced in Australia.
The enforcement process could include bankruptcy.
Whether a creditor will chase a debt internationally will usually depend on the size of the debt and commerical realities of the cost of recovery against the likely actual recovery. I can't comment on that.
There are also issues relating to the location (finding someone who does not want to be found) of the debtor. This can be difficult and expensive - again these are commercial considerations that the creditor will weigh up.
I cannot comment on what might happen if you were to return to te USA.
There are limitation periods in Australia relating to the enfocement of judgment debts. The judgment is generally unenforceable after 12 years have elapsed from the time the judgment was entered. I have no knowledge of the corresponding position in the USA.
Re: International Student Loan-Chasing
I am sorry you have not enjoyed your time here. I hope Australia works out better.
There are two (2) questions here and I will answer each of them.
The immigration question is easy. The INS (the US agency that handles all government immigration issues) does not care about money matters. They don't care about your credit report. They only care about criminal activity, and owing money is not criminal in the US.
The second question is the credit/financial question. it is easy to enforce a US debt in Australia. The creditor merely has to make a motion to the Australian court. It is a standard document, just like it is here in the US. The Australian credit reports will not pick up all of your US debts, but they will pick up some of them; and that will affect your credit rating in Australia.
If I might suggest an action, Bankruptcy under Chapter 7 in this country is easy, inexpensive, and fast. And there are no, zero, none immigration consequences.
If you have any questions, call me. You are welcome to a consultation at no fee at my offices at 42 west 44th st., NY,NY. Please call for an appointment first. (646) 591-5786
Re: International Student Loan-Chasing
You have several alternatives. Please call my office at 718-888-3108 to schedule a consultation to discuss all your options which are to verbose to discuss via an e-mail.
Very truly yours,
Neil E. Colmenares, Esq.
Re: International Student Loan-Chasing
Your loans could be turned into judgments if you ignore them. The judgments might affect your assets in Australia IF the judgments are ever filed (domesticated) in Australia (if treaty exists for this-probably does). It is not a common occurrence that US judgments are docmesticated in foreign countries...it is expensive. NO atty will tell you to ignore the debt and there is no system in existance now to screen foreign nationals if judgments are entered, but If you are not coming back I would not worry much. Get rich and then pay!
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