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Moved to Australia, Default on Car Loan

The last post in this topic was posted 2669 days ago. 

 

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My husband and I have moved to Australia. He had a loan on a car in Illinois, and the car is worth maybe 1/4-1/2 of the remaining loan value of $15,000. A friend of ours returned the car to the credit union with a note saying that he is defaulting on the loan (it's only his name on the loan.)

 

The bank emailed him and said that they would like to talk (to work out a payment plan I'm guessing), and that returning the car doesn't absolve him from the loan.

 

He wants to default on it...and no longer pay the remaining balance.

 

What is the best way to go about this given that we now live 10,000 miles away.

 

Thank you in advance for any advice!

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My husband and I have moved to Australia. He had a loan on a car in Illinois, and the car is worth maybe 1/4-1/2 of the remaining loan value of $15,000. A friend of ours returned the car to the credit union with a note saying that he is defaulting on the loan (it's only his name on the loan.)

 

The bank emailed him and said that they would like to talk (to work out a payment plan I'm guessing), and that returning the car doesn't absolve him from the loan.

 

He wants to default on it...and no longer pay the remaining balance.

 

What is the best way to go about this given that we now live 10,000 miles away.

 

Thank you in advance for any advice!

 

I'm not sure I understand the question. What is the best way to default? Default = not paying, which he's already doing.

 

Whether or not that's very smart is an entirely different question.

Edited by cv91915

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...

 

He wants to default on it...and no longer pay the remaining balance.

 

What is the best way to go about this given that we now live 10,000 miles away.

It seems as if the default part has already been taken care of.

 

At this point they'll go through the process of selling the vehicle and try to collect the deficiency balance from him. I doubt they'll get him in Australia though.

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...

 

He wants to default on it...and no longer pay the remaining balance.

 

What is the best way to go about this given that we now live 10,000 miles away.

It seems as if the default part has already been taken care of.

 

At this point they'll go through the process of selling the vehicle and try to collect the deficiency balance from him. I doubt they'll get him in Australia though.

 

If you are planning on moving back to the US, you may want to research if moving out of the country stops the clock on the SOL.

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I wonder if there will be an issue just visiting the U.S.? Anyone know of issues depending if they're U.S. or Australia citizens (or both)? Whatever the outcome, I feel it would be best to keep your accounts current no matter what country they're in. Circumstances may change and you may need to move back to the U.S. That car loan can come back to haunt you.

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You won't have any issues visiting the US. A civil judgement or a bad credit rating have no bearing on one's citizenship or the ability to live or travel abroad.

 

I agree that it's certainly preferable to leave a nice situation in your "home country" to return to, but I don't think one car loan default is going to be that big of an issue. They'll probably try to collect on whatever the deficient amount is. Worst thing I can imagine is that some family members might get some obnoxious calls on your behalf...


Enjoy Australia! :)

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I wonder if there will be an issue just visiting the U.S.? Anyone know of issues depending if they're U.S. or Australia citizens (or both)? Whatever the outcome, I feel it would be best to keep your accounts current no matter what country they're in. Circumstances may change and you may need to move back to the U.S. That car loan can come back to haunt you.

My thinking as well.

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...

 

He wants to default on it...and no longer pay the remaining balance.

 

What is the best way to go about this given that we now live 10,000 miles away.

It seems as if the default part has already been taken care of.

 

At this point they'll go through the process of selling the vehicle and try to collect the deficiency balance from him. I doubt they'll get him in Australia though.

 

If you are planning on moving back to the US, you may want to research if moving out of the country stops the clock on the SOL.

 

Leaving the jurisdiction does indeed stop the SOL clock in its tracks. It restarts when the defendant returns to the jurisdiction of the court.

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He will be sued in IL and they will get a default judgment against him when he does not appear in court or answer the summons. He will probably be served by publication, since he left the country. The bank will then be awarded costs and legal fees per the loan contract terms, which will be added to the total.

 

They will then hire an attorney in Australia, send him the package, and file to domesticate the judgment for enforcement through the Australian court system. I assume they enforce judgments the same way they do here.....bank levy, garnishment, seizure of personal property. He will wind up paying for all this, so the bank won't hesitate to spend their money doing this.

 

Maybe you should consult with an AU atty to see what you may be in for.

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I think you should contact the credit union and work out a payment plan. You moved to Australia and I assume your working there. What's wrong with just settling your debts in the States? They may say we want the entire amount in one shot, ect ect, but I'd at least see if you can work out a payment plan.

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H

They will then hire an attorney in Australia, send him the package, and file to domesticate the judgment for enforcement through the Australian court system. I assume they enforce judgments the same way they do here.....bank levy, garnishment, seizure of personal property. He will wind up paying for all this, so the bank won't hesitate to spend their money doing this.

 

I'll go ahead and take "things that will never happen for 500" Alex.

 

If you never ever plan on returning to the US you're good to go. If you plan on coming back ever, I would work to prevent a judgement if I were you. A local CU is a lot more likely to sue than like COAF or santander or something. I would let what happens happen and settle it off at some point.

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...

 

He wants to default on it...and no longer pay the remaining balance.

 

What is the best way to go about this given that we now live 10,000 miles away.

It seems as if the default part has already been taken care of.

 

At this point they'll go through the process of selling the vehicle and try to collect the deficiency balance from him. I doubt they'll get him in Australia though.

+1

 

And your relatives might get calls about it for a while.

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Before I decided to file for bankruptcy back in 2009... I had consulted an attorney because I sort of did the same thing. I moved to Denmark but I had all these debts in the US and I was like what should I do? I couldn't sell my house cause it was 150k upside down and my credit cards etc... multiple attorneys actually advised me that I should just walk away and never look back. Saying that they would never come after me in another country. However, this didn't sit very well with me and I was extremely hesitant to just walk away from everything.

 

My move to Denmark had been planned to be permanent but low and behold, it didn't work out and we ended up moving back to the US. I had ignored the attorney's advice and continued to pay my bills while I was in Denmark. And I am certainly glad I did because we had completely unforseen events happen that forced us to come back to the US. If I had just walked away, I would not be anywhere near the credit situation I am in now (a good situation). So, I ended up filing for Bankruptcy instead of defaulting on a TON of debt.

 

Now, you are only talking about a 15k car loan (are there other things as well?) ... you can certainly do whatever you'd like, but I strongly advise against leaving bad debt in your home country. Can you be 100% sure you will never need to live here again?

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cputrwz- That was your sixth sense that you relied on because it sounds like it really did work out a lot better for you. I'm glad it did. I think the OP just wants to say heck with it and move away. As you know problems never go away. They just sit and wait and then smack you in the face when you least expect it, LOL.

 

side note- I'd love ot live in Australia myself or England and maybe 2 or 3 other countriesbut that's it. maybe someday :)

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I wasn't going to respond to this post as I doubt that the OP will be back, however, in general terms-- We live in a World that is connected in every way. This includes credit ratings. If someone defaults in the USA and moves to another Country it is more than likely that their credit history will follow them wherever they go. If they are looking to buy a car or a house or get a new credit card so they can buy one of those big bush knives, their credit records with Equifax or Experian or Transunion will follow them wherever they go. And yes, there are collection agencies in Australia who are not bound by the FDCPA and who may have some collection tactics that would make the "skip artist"s life much more uncomfortable than any possible lawsuit or judgment would.

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Also, they didn't say what bank this was. All the majors probably have branches in AU. That makes it very easy for them to domesticate a judgment and collect it there. I'm sure they've all done this in the past.

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Also, they didn't say what bank this was. All the majors probably have branches in AU. That makes it very easy for them to domesticate a judgment and collect it there. I'm sure they've all done this in the past.

Extremely, extremely doubtful. Even if there happens to be a bank there operating under the same name, you can rest assured that it operates under a local entity in order to comply with local banking regulations. The branches of international banks are extremely disconnected... not to mention some piddley charge off for a few grand isn't going to matter enough to anyone? How much do you think they're going to spend on legal expense to chase somebody?

 

Other than some annoying calls to family members, and a nasty lil blemish on his credit report if he comes back, nothing is going to happen...

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