Dealing with debt when moving from UK to US

[jenniferjones101 19]

Good Afternoon VJers!

I'm in need of some advice. My UK fiance and I will be marrying in Vegas on April 14 and I will be applying for CR1 immediately after (sad he has to go back to the UK...) This will actually work out well for us since he will be able to work and settle all his "affairs" in the visa processing months. He has a significant amount of debt that was accumulated during his past marriage of 5 years that he got landed with - not much was in his ex's name and she is on disability benefits, can't work, and is on fixed income - in the amount of 18,000GBP. All of the debt is credit card debt (EGG, BarclayCard, CapitalOne, etc.) and is currently in a debt management plan with Gregory Pennington. He had settled with Gregory Pennington to have the debt paid for in 5 years (he's about 1 year into the plan now) but when he moves here, we will not be able to afford the 400GBP per month he is currently paying He also has his car which isn't paid off that we have to deal with (thinking about selling it but not sure if it's worth what is still owed)

We are hoping to get some advice on what others have done about debt when moving to the US and what options we might consider (i.e. bankruptcy, settlement, etc.) Any advice you all have would be greatly appreciated.

[nickbits 43]

I would probably have him declare bankruptcy in the UK, his credit won't follow to the US.

I paid off my wife's student loans but she had some credit card debt that was in collections. We just "abandoned" it as it was past the statute of limitations for legal action. She actually has good credit in the US.

Edited February 23, 2012 by nickbits

[Ban Hammer 13,508]

duplicate topics have been merged

[jenniferjones101 19]

duplicate topics have been merged

Thanks, Charles! I wasn't sure which area was most appropriate to find a response which is why I put it twice :/ Sorry if that wasn't the right thing. But thanks for clarifying!

[jayne d 12]

This may be helpful: http://www.bankruptcyhelp.org.uk/is_bankruptcy_right_for_me.asp

[jenniferjones101 19]

Thanks all for your replies so far. Any other experiences/advice are still welcomed!

[Glyn and Kathy 288]

Well, I would say don't have him burn bridges that he may need to cross at some point. Just putting it all aside and walking away is very tempting, but what if he decides at some point that he wants to go back with you? Hubby and I have been paying faithfully on our debt in the UK for the past 3 years. We've kept in touch with our creditors every time we've moved even here in the US. Its a good thing, as this past year we decided to move back to the UK to be closer to Glyn's mum who is ill and recently widowed. Our credit there is good so we don't have to worry. Maybe he can get in touch with the creditor and make some new arrangements that he CAN afford??? And sell the car and get what he can for it???

[UKGirl123 24]

I chose to go bankrupt after my house rented out and then the tenants stopped paying. I didn't have employment here and I had debts and the mortgage in the UK. I went bankrupt in March last year and my bankruptcy ends in a few days.

I was worried about it at first, but I was also worried about not being able to pay. Honestly, the best decision for me was to go bankrupt. It was pretty easy to do and because I was abroad I hired someone to file the petition for me (it has to be legal representation not a family member etc) and had to go to the Court in London as they cover the international what not and it has to be done in person (hence where the legal rep. does it for you).

If you chose this route I can give you the name of the company that filed for me and if you need advice you can contact me on here.

FYI It does cost to declare bankruptcy. About $1000 in fees etc. but that included the legal rep.