Can I leave the country with an underwater mortgage and unpaid debt?
Selling an underwater home or car before moving abroad means taking a financial loss because the sale price won't cover the remaining loan balance. Leaving with these unpaid debts leaves people facing unresolved financial liabilities and uncertainty about the long-term consequences.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
Found another way around this?
Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.
Can I leave the country with an underwater mortgage and unpaid debt?
- 1Voluntarily surrendering the property and car to the bank before leavingDid this help you?
- 2Emptying bank accounts associated with the debts to prevent freezingDid this help you?
- 3Attempting to settle or pay down balances before departureDid this help you?
- 4Boarding an international flight despite outstanding debt, allowing the account to go to collections.Did this help you?
- 5Just pay your debtsDid this help you?
- 6Ignoring communications from creditors and debt collectorsDid this help you?
- 7Planning to call the credit card company to negotiate settlement options or hardship plansDid this help you?
- 8Considering moving funds or checking accounts overseas or to different financial institutionsDid this help you?
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“I'm an American who moved to Latin America a year ago. I had a Chase card with, unfortunately, a high balance (30K) since losing my job. I was making the minimum payments until about Spring, but can longer do so.”source ↗
“They have emailed me to say they are charging the card off in October. I have no assets in the US but do have small retirement accounts plus my spouse's social security (our only income). We have no plans to move back to the USA ever.”source ↗
“I'm curious if they won't let me settle how will they sue/serve me in a foreign country? Any tips on how to handle this? It is the first time I have ever not paid a bill.”source ↗
“I’m planning to move to Spain next year.”source ↗
“selling my house would mean taking a loss because I owe more on the mortgage than what I could sell the house for.”source ↗
“I still owe money on the loan, and if I sold it, I would likely get less than what I owe.”source ↗
“What happens to debts like these that I realistically won’t be able to fully pay off before I leave the country?”source ↗
“Hi, I have a PayChekPLUS prepaid card issued by Darden Credit Union, and my balance is currently negative $1,257.49.”source ↗
“Can i leave the country without paying it and what will the consequences be”source ↗
“i am a non-US citizen leaving the US soon and probably won’t return for 7-10 years. I have a Darden PayChekPLUS prepaid payroll card that is currently -$1,257. If i leave without paying it, what realistically happens?”source ↗
Where this came up
People with this problem also raised
- 6How to pay off multiple small short-term debts and loans efficiently
- 2How to handle a car shortfall after finishing debt review
- 2How to quit a volunteer project that's a mess
- 10Should I use my savings to pay off student loans?
- 3Will it be too late to start investing once I’m debt-free?
- 5Is it normal to feel guilty about leaving your wedding early?