Bankruptcy in U.S when living in the Philippines

I would contact a bankruptcy attorney. How much do you owe and do you have assets?  If it's a small amount and dont care about credit score, then walk away. If you owe big money and walk, the creditors can go to court and take money from any accounts in us banks, probably seize any tax refunds and so forth.

@Dusty Johnson under US Federal Bankruptcy Laws you must reside in the US or its territories.  Must appear  at all court hearings and be present upon final judgment hearings.

Walking away from your legal obligation to pay your creditors is a very bad decision,  make a settlement with creditors normally at 50 , 60, 70  percent  of the amount of the debt.  It's better to settle this before leaving the US for the Philippines.

There is also another option to consider, IF ,you walk away your assets, if any,house,bank account etc. may and can be either seized or a lien placed upon them to satisfy the debt, and or if you are receiving a pension the debtors may elect to garnish your pension in order to satisfy the debt. In any event a bankruptcy  lawyer is probably the wisest choice to navigate those waters. Once clear of this try hard to vanquish and make as small as possible your carbon footprint going forward.

@Dusty Johnson

Dusty,  I sent you a private message in your expat mailbox.

Be careful with taking advice on an open forum,  you are going to get a lot of stuff people read somewhere, read my message,  then check with an attorney for confirmation.

    There is also another option to consider, IF ,you walk away your assets, if any,house,bank account etc. may and can be either seized or a lien placed upon them to satisfy the debt, and or if you are receiving a pension the debtors may elect to garnish your pension in order to satisfy the debt. In any event a bankruptcy  lawyer is probably the wisest choice to navigate those waters. Once clear of this try hard to vanquish and make as small as possible your carbon footprint going forward.
   

If  your only income is social security and pension, nobody can touch it. If you have a house, sell it and rent. Make sure you sell any new cars. Then if bankruptcy is not possible, walk away and do not feel guilty as society expects, you have been through it all, you gave them all you had, f#@k them. I have NO IDEA what carbon footprint has to do with this other than nice virtual signaling by the commenter.

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@danfinn wrong and ridiculous advice,  Social Security regardless of the type can be garnish by court order.  Walking away from your legal obligation financial debts is not the best way to deal with your financial situation.

Consider consulting with a US attorney that specializes in your particular situation.  Unfortunately some people hete on the forum are not really concerned about you or your personal situation.

Social Security and Social Security Disability Insurance (SSDI) can sometimes be garnished to pay money you owe to the government, such as back taxes or federal student loans, and money you owe for child or spousal support.Aug 28, 2023

This is the only times social security can be garnished. This is by federal law.

Pensions and 401k’s are not so protected.

Again, OP, be very cautious of advice you will get from this thread. What you are asking about is extremely complex,  and requires a ton of research and consultation with experts,  not amateurs.

https://www.consumerfinance.gov/ask-cfp … 20support.

@blacksheepjuno abousaly Social Security regardless of the type can be legally garnish by any local, state or federal court. 

The only pension that can not be garnish is a VA disability, that's it all other pensions can be garnish regardless of the US state you live in.

    @blacksheepjuno abousaly Social Security regardless of the type can be legally garnish by any local, state or federal court. 
The only pension that can not be garnish is a VA disability, that's it all other pensions can be garnish regardless of the US state you live in.
   

    -@Hwydaddy

Wrong. My quote came from a government website.  You seem to quote yourself.  I’ve consulted with tax and bankruptcy attorneys.  I’m not an attorney,  and I’ll bet you’re not one either.  You’re just a typical know it all.  Again, to the original poster,  don’t trust amateur know it all’s who think bluster and huff and puff will make them believable. Do your own research, consult with experts, and don’t base your decision on half baked advice from the morality police or the you can get away with anything side. You won’t find the perfect answer here.

    @danfinn wrong and ridiculous advice,  Social Security regardless of the type can be garnish by court order.  Walking away from your legal obligation financial debts is not the best way to deal with your financial situation. Consider consulting with a US attorney that specializes in your particular situation.  Unfortunately some people hete on the forum are not really concerned about you or your personal situation.   

OK , you just lost a fan 😂by calling my advice "ridiculous". You have demonstrated no standing to say things like that about anybody here. Personally I wouldn't be upset if you just dissapeared but I suppose you have much more drama to create before you depart...but you will go, you guys always do.

Now, anybody can get a court order for anything if they have a good lawyer. If we assume your court order was obtained,

"The key to making sure your federal benefits are legally protected from being frozen or garnished is to use direct deposit to put the money into your account or prepaid card. You can sign up anytime to have federal benefits direct deposited to your bank account or loaded onto a prepaid card.

Money from these government programs is protected:

Social Security benefits

Supplemental Security Income (SSI) benefits

Veteran’s benefits

Civil service and federal retirement and disability benefits

Servicemember pay

Military annuities and survivor benefits

Federal student aid

Railroad retirement benefits

Financial assistance from the Federal Emergency Management Agency (FEMA)

Your bank or credit union must automatically protect two months' worth of benefits."

Walking away from debt is sometimes the only choice a person has left, for example, with unforseen medical bills. Now, it is possible for a man with 10 gallon hat to only be familiar with life at home on the range but most people are somewhat streetwise and know the realities of personal debt and many are familiar with friends, family or just regular people who have lost everything. That's right, @wackadaddy and this has nothing to do with anybody's financial situation. Damn, you cowboy trolls are mean 🤣

From the consumer protection financial bureau:

Generally no, debt collectors aren’t allowed to take money you receive from Social Security or VA directly from your bank account or prepaid card. Before that is possible, they have to take legal action and you’ll be notified.

Before a debt collector can take Social Security or VA benefits, they must sue you and win a judgment against you for the amount you owe. Then, the debt collector must get a court order that tells your bank or credit union to turn over money from your account or prepaid card. This is called garnishment.

The key to making sure your federal benefits are legally protected from being frozen or garnished is to use direct deposit to put the money into your account or prepaid card. You can sign up anytime to have federal benefits direct deposited to your bank account or loaded onto a prepaid card.

Money from these government programs is protected:

Social Security benefits

Supplemental Security Income (SSI) benefits

Veteran’s benefits

Civil service and federal retirement and disability benefits

Servicemember pay

Military annuities and survivor benefits

Federal student aid

Railroad retirement benefits

Financial assistance from the Federal Emergency Management Agency (FEMA)

Your bank or credit union must automatically protect two months' worth of benefits

The debt collector is permitted to garnish money in your account that is over two months’ worth of benefits. If your account has more than two months’ worth of benefits, your bank can garnish or freeze the extra money.

1. If you keep less than two months worth of your social security in the bank,  they can’t touch it.
2. In order to sue you for monetary damages, you must first be served. You live in the Philippines.
3. If you are taken to court,  this government website even provides information to help you remove the garnishment, and gives a sample letter for you to send to your creditor.

Dear [Debt collector name],

I am responding to your contact about a debt you are attempting to collect. You contacted me by [phone/mail], on [date]. You identified the debt as [any information they gave you about the debt].

Please record that my income comes from protected federal [Social Security and/or VA] benefits. These benefits are generally protected from garnishment to pay a debt owed to a private person or company. If you forward or return this debt to another company, please provide this information to them.

Thank you for your cooperation.

Again, get expert advice, do your own research.

https://www.consumerfinance.gov/ask-cfp … 20support.

@danfinn

100% agree. Hwydaddy joined the forum way back in Dec., 2023,  and already wants to be a bully. It will be nice when he disappears, or gets into it with Coach53,  lol

I recommend a bankruptcy attorney.  I have filed chapter 13 twice due to life events and attorney's advise. Life is a business and has inherent risks.

Let the attorney advise you on your best options as the laws change over time.

Good luck.

Hello everyone,

Please note that I have put aside some posts from this thread.

The posts were removed as they were very disrespectful towards members. However, they claim that some information posted on this thread are not correct.

I would request members to double check the infos shared for the benefit of participants. For the rest, we (moderation) have taken action.

All the best

Bhavna

****

The website I quoted from is consumerfinance.gov

consumer finance . gov, so it doesn’t show up as a link under review.

All the information I provided was from

consumerfinance.gov

@blacksheepjuno

Hello, thank you for the link. His post have been removed.

Could you please send me the complete link ? I will add it to the post

Thank you

Bhavna

https://www.consumerfinance.gov/ask-cfp … 20support.

Here it is, Bhavna

    How can you declare bankruptcy in the U.S if your living in the Philippines and can't make an in person  appearance  ?  On small amount can you just walk away ?
   

    -@Dusty Johnson

Welcome to the forum Dusty.

Some good info coming in from members and hope you have a successful outcome.

Only a suggestion but if it's a small amount as you mentioned why not simply negotiate with the creditor a percentage or payment arrangement over time rather than going through the bankruptcy debacle.

Good luck.

Cheers, Steve. 

@Dusty Johnson Check you Messages for a reply.

Dusty Johnson asked. . . .How can you declare bankruptcy in the U.S if your living in the Philippines and can't make an in person  appearance  ?  On small amount can you just walk away ?

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All that advice and suggestions.

How much do you owe your creditors?

(A) A little & can't pay?
(B) A little and don't want to pay?

(C) A lot & can't pay?   

(D) A lot & don't want to pay?

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(1) Besides thinking about bankruptcy, consider is it worthwhile for a creditor to sue you?

(2) Do you have enough assets for your creditors to come after you?
(3) If your assets consist of money in a bank account, they must find it first.

(4) A precautionary move, open another bank account in Podunt Hollow.

(5) Change your phone number

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After all those threatening letters & telephone calls your account will be written off and sold to a collection agency. They can harass you for 20 years, first by threatening letters, then phone calls.

There is a statue of limitations on debt collection by the original creditor. Never pay a collection agency anything, because the clock starts over for a new statue of limit of limitations.

If you happen to engage in conversation with a collection agency tell them to prove the debt is real and to provide the details in writing.

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After seven years all the negative info at the credit bureau will be erased.

Been through it twice also, and I agree with all memebers above in advising to seek out a attorney. Also I could be mistaken but I believe the court will provide one if you can prove you cant afford one.

But I do believe its mandatory for you to attend, I remember it was a big deal being there in person and a must was in providing a physical SS card and not just a #. Good Luck

@danfinn What I was eluding to in regards to the CF, there exist somedebt collection "Blood hounds" that their sole satisfaction is to hunt down and harass  outstanding debts. they are like Duane "Dog" Chapman., swearing to leave no stone un-turned. By leaving no trail (CF)to follow you cant be caught and thereby be harassed.