US Debt - DR Condo

[alexw]

That's true, but no so true for a collection agency - They have means of making one's life miserable. Now it is not likely they will not come either, but if he owes as an example say $60K and they bought that debt then they have a big desire to collect - sending someone here (if they actually could skip trace him) to have a "chat" might be something that is not beneath them, and they most likely have Dominicans in their employ who would be wiling to come see if they could collect something.
Back in the US there are certain rules they must follow and you can get rulings against harassment.
I doubt even a collection agency will come after an old-age scofflaw in DR.

Personally I find it offensive someone would run on his own bills, because those credit card company's losses get passed on to more responsible people in the form of higher interest rates and fees. I am guessing it is between $50K & $60K since you say your debt exceeds the value of your apartment ? In any event - you obviously decided you would never pay at some point as the monthly debt was growing, and if fact you likely charged more recklessly - sounds like you have already decided to become a deadbeat.

To be so judgmental without even knowing 5% of the facts is such a testament to your true character. Please do better

 

[playacaribe2]

You said it is super easy - just a publication in a newspaper. Or to pin the summons to the front door. Piece of cake. And the house goes to them. For just two or three thousand dollars of credit card debt. Super-easy money.

Nowhere in my responses did I say that. I merely pointed out that when you indicated the person must be served in hand, that there are other ways to obtain good service for a summons i.e., publication in a newspaper or leaving it at the persons last and usual address.

Every creditors threshold of how much they will spend to collect has many variables that vary by debt owed, costs to collect, location of the asset to be liened or seized.

I have never known that homes of Americans have so little protection from credit card predators.
Thank you very much again for your time and expert clarifications!

Debtors have multiple protections on their personal residence available to them against creditors in the form of bankruptcy, homestead laws, or the obvious pay what you owe or establish a workout plan with the creditor.

If you have a personal residence in a strong homestead state such as Texas, Florida, Kansas, creditors cannot seize and sell your personal residence..........no matter how large or valuable it may be. Burt Reynolds, the actor, and the Hunt Brothers of Texas who tried to corner the silver market were the poster children of homestead law protection in their states of residence.

It is not an easy process and was never meant to be........but coming full circle.....the answer to the OP's original question is YES............"Do US banks have the right to seize my apartment through the DR legal process"


Respectfully,
Playacaribe2

 

[playacaribe2]

I posted this yesterday but the post never showed up:

Thanks for responding Playacaribe.

If I had set my screen name as Lawn Spreader it would have been just as confusing but maybe worth a chuckle.

Great organization:

US driver's license expired
CC Bills to Miami address, a DR re-mailer service
I work on contract
Taxes in order, filed from my DR address
US bank account with the Miami address
SS direct deposit in US bank account (can SS be attached?)
Will and testament in DR (no US assets)

So no current US connection via drivers license.
CC bills do provide a US connection/address in Florida (for suit purposes)
Does your work contract also provide a US address?
Taxes filed from your DR address gives potential creditors a DR address to pursue.
So you do have assets in the US (bank account). No SS cannot be attached...it is judgment proof, but other income can be...and the potential creditors could try to levy on your bank account to find this out.
Will and testament in DR.........at this point you need to see if your descent and distribution to heirs/friends/family comport with DR law.....but understand that when/if you pass....SS will be notified where and when it occurred..........giving creditors an opportunity to know when and where other assets may be located.

I'm not thinking of avoiding the CC debt. My work has always been feast or famine. When it returns to feast all debt will be resolved.

Have you thought of at least trying to make minimum payments (not an ideal solution, but it keeps the creditors at bay).

I just don't want to resolve it in the short run by handing over my castle..

The process of seizing/liening overseas assets can be long and expensive, so for the short run, you appear to be ok.

Thanks to all who have responded. I love scratching my head straining to understand some posts.

Good luck to you in resolving the matter favorably.


Respectfully,
Playacaribe2

 

[Fabio J. Guzman]

U. S. banks can and have gone after properties of their debtors in the DR after domesticating the judgment against the debtor in Dominican courts.

 

[DRob]

I'm a US citizen. I've had legal residency in the DR for 15 years. I own an apartment in a condominium complex free and clear.

I'm 72 years old and have recently developed some minor health problems which do not appear to be life threatening.

I am collecting US Social Security retirement benefits.

I have US credit card debt that exceeds the value of my apartment.

Four months ago my other source of income collapsed and I am working to develop alternative sources of income since I am unable to make debt payments.

Do US banks have the right to seize my apartment through the DR legal process?

Right.

Some...interesting thoughts here.

Anyway, I ran this by one of my partners, who does restructuring work, this morning. More facts are needed to give you a precise answer. That said, the short answer to debtor/collections questions is that yes, more likely than not, a creditor will be able to reach out and touch your assets in the DR. This is done through a process called "domestication," which means they obtain a judgment in the states, then get the applicable DR court to recognize its validity.

There are no treaties or other legal agreements between the US and other countries to do this, but most other nations have local laws creating an optional provision. The US and DR have good relations, so it's not at all uncommon for domestication efforts (going either way) to be successful.

My general thoughts on this would be to

1. Negotiate with the lenders, in good faith. Presume they can find you, because they frankly can (they have fairly sophisticated tools, and given your type of debt, you likely have an electronic paper trail miles long and a football field wide), and playing "catch me if you can" seldom ends well for the debtor.

You have what is known as "unsecured debt," which means if you were to file bankruptcy, they would likely be at the end of the line when it came to getting their hands on your home. They're fully aware of that, and as such may be inclined to cut a deal, often for (quarters) on the dollar.

2. If they do come after you, understand what's happened. The bank has written off the debt, and sold it to a collections agency, generally at a deep discount. They will also be heavily motivated to cut you a deal, because even reducing the debt by a third or more nets them a profit.

3. If they do sue you then consider speaking with the attorney assigned to that matter. Your debt has been transferred to their desk, and they are often able to cut deals a normal collections agent can't.

4. Finally, if they go and obtain a judgment back home, then domesticate it (all this takes time, btw), consider consulting with a bankruptcy attorney. Chapter 13 is a form of bankruptcy that allows you to come up with a repayment plan in exchange for being able to pay your debts and keep your house.

As stated earlier, in a BK, the unsecured CC debtors are the last to get paid, as taxes (and other similar "priority creditors") and other types of debts will come first. The plan is based on your ability to repay, which, given your relative income, means much of the CC debt may eventually get discharged.

Anyway, those are some general guidelines on how things work up in the US, which will be at play here. All the DR will be doing, if anything, is permitting any judgments reached up here to be applicable down there. I'd get ahead of it, if at all possible.

That said, whatever Mr. Guzman opines about DR law, I'd advise you to follow it and govern yourself accordingly.

Best of luck.