# US Bankruptcy



## Miner (26 Jun 2006)

A relative of mine has been an illegal in America for a number of years.  He's just had a spell in hospital over there costing just over 100k which he can't pay.  His job over there has also ceased.  He's planning on jumping ship and returning to Ireland to retire.  Can he file for bankruptcy in the US or what options does he have?


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## jhegarty (26 Jun 2006)

Miner said:
			
		

> A relative of mine has been an illegal in America for a number of years.  He's just had a spell in hospital over there costing just over 100k which he can't pay.  His job over there has also ceased.  He's planning on jumping ship and returning to Ireland to retire.  Can he file for bankruptcy in the US or what options does he have?



would not put him on the radar for homeland security ?


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## bond-007 (27 Jun 2006)

He has been  in hospital that is enough to be on the radar for Homeland security, unless he is using an assumed name and social security number.
Whats the worst they could do? Deport him?

Best option would be to slip across the border into Canada and fly home.


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## ClubMan (27 Jun 2006)

Presumably he might not be able to return to the _US _without hassle if he reneges on outstanding debts/bills?


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## Miner (27 Jun 2006)

He doesn't intend returning to the US.  If he does come home can the creditors chase him?


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## MOB (27 Jun 2006)

I would recommend that he get the advice of a good american lawyer.  If he simply jumps ship, then it is perfectly possible that the debt might be pursued in Ireland.  Certainly, if he owes the money, and if it was pursued here, the Irish courts would enforce it.


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## OnTheMove (28 Jun 2006)

I imagine the creditors would 
a/  Go after him in Ireland( assuming they know he is in Ireland) and get court order/judgement against him
b/ Enforce the court order
     Not sure about b if he had limited assets.  I think they might write it off as the costs of recovery may well be greater than the sum owed


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## nelly (29 Jun 2006)

sure how would his creditors prove it was him? he was working under assumed Social security number and name? - i would say don't bother with Ireland - try somewhere in the EU with a decent healthcare system.


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## mell61 (30 Jun 2006)

Re the bankruptcy bit, I notice that the legislation changed last year in the US re who could g bankrupt.
Previous to last Oct, you could go bankrupt and debts were cleared and you couldn't get credit for 5 years (i think it was something like section 13).
Since last Oct the legislation is that if you declare bankruptcy you can only take the above option if you have earned less than the median salary for your state in the previous year (i think its only 1 year).  If you are over the median they put you onto a different bankruptcy status (seomthing like 7), which is actually a 5 year repayment program, and no debts are wiped.    Its like a managed credit repayment program.   Apparently its creating a lot of concerns for debtors in the US, as many seem to have viewed bankruptcy as the 'get out of jail' card!

(Blame watching Suze orme finance programme while on vacation there a few months ago, the bankruptcy issue came up a couple of times).


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## ClubMan (30 Jun 2006)

Surely the fact that he's illegal precludes the bankruptcy or any other legal option?


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## mell61 (30 Jun 2006)

Probably not, homeland security is one ballgame, money and capitalism is another!


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## ClubMan (30 Jun 2006)

But surely any bankruptcy proceeding would involve some examination of the individual's tax affairs and if they are illegal then...


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## bond-007 (30 Jun 2006)

Yes Indeedy, Clubman. Homeland Security will be on the case faster than you can say orange jumpsuit. Thread carefully.


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