Legal Question in Bankruptcy in California

Re: should I file bankruptcy?

I'm not sure you need to file. If you do not intend to return to the U.S. to live again, then its fairly unlikely that the creditors will chase you to Switzerland to collect the debt from you. You are what we often refer to as essentially "judgment proof" - having no property to levy, no income to garnish, and once you leave the U.S., it will not only be hard for the creditors to find you (unless you gave them your Switzerland address in the loan application, or gave family or friends in Switzerland as references on loan applications), but it will cost them a large amount of money to obtain a judgment here, then register it in Switzerland and attempt collections there. I am not an international law expert, but I'm not even sure, given Switzerland's stance on privacy and protection of its residents that a creditor can even register his judgment there and collect money from you in Switzerland. You may wish to consult with an attorney in Switzerland, but I think the odds of having this follow you to Switzerland are low.

What will happen is that the creditors will sue you, and will get judgment against you. Those judgments last 10 years, and can be renewed thereafter. Those judgments, unless the creditor takes the action of registering them in Switzerland or in other states in the U.S., are only good in California. If you never return to California, and never own property here, the liklihood is that they will never collect anything from you.

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