Legal Question in Credit and Debt Law in California

Debt

My wife and I are currently in Australia, and are planning on moving back to where I am from, California. If we left, lets say, 20k debt here (in credit cards/car loan) can they come after us overseas? Thank you for your time.


Asked on 5/13/03, 8:39 pm

2 Answers from Attorneys

Sheldon G. Bardach Law Offices of Sheldon G. Bardach

Re: Debt

The law requiring States of the United States is similar to the "Full Faith and Credit" required of states to each others judgments. The legal theory is called Comity. The U.S. has treaties which require mutual comity to be given the judgments of all countries involved. I am afraid that you will have to make some arrangement with your creditors, which might be easier once they know you are leaving Australia, because although comity allows them to come after you, it is not an easy process. Some arrangement should be makeable.

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Answered on 5/14/03, 11:21 am
Tim Wishart McMahons National lawyers

Re: Debt

short answer: yes.

Australia has reciprocal arrangements with other jurisdictions (including the USA) for enforcement of judgments.

You also need to consider who you are proposing to leave owing money to. This could impact on your credit rating if, for example, you owed money to a major bank or credit provider.

At the end of the day the creditor will make a commercial decision on how hard it wants to chase you.

The limitation period on debt is 6 years but on the car loan that will run from when the final payment was due.

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Answered on 5/13/03, 8:48 pm


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