Bankruptcy-mandatory?
Hi! First I wanna thank you for the great idea with this site…my question is: if I have some unsecure debts(about 40.000 $)and I`m planing to go back in Europe,is it mandatory to fill for bankruptcy first?If I don`t do it now,I can do it later…in 1 or 3 or 5 years(if I`ll decide to come back)?Thank you!
Posted from: Ontario
It is not mandatory to file the bankruptcy prior to leaving, but in many ways it may make sense. Especially from a credit standpoint. IF you put off the filing for 3 to 5 years, then have to deal with it, you a bankruptcy will likely last 9 – 21 months and then you will have an R9 listed with the credit bureau for another 6 years, this total process could take you as long as 14 years to have your credit back.
The alternative is to file for bankruptcy now, be done in 9-12 months, relocate, and if you come back in another 5 years, then your bankruptcy will be close to being off of your credit history.
So you are not required to file the bankruptcy but it may make sense to do so sooner as opposed to later.