# Bankruptcy in USA - can he leave to come to Australia?



## towbro (Jan 5, 2013)

Hi there, all. 

I have a fiance who, because of the economic downtown in the US, has been struggling to pay off debts and is considering applying for a Ch 7 Bankruptcy petition to wipe the slate clean. 

Initially I was going to move to the US, but after careful consideration, we both believe that his moving to Australia is better for the both of us. 

My question is twofold: if he goes ahead and applies for bankruptcy, will the US forbid him from leaving his country during the 7-10 years of the bankrupt period?

Additionally, will this affect his ability to relocate to Australia? On the face of it, he is eligible for a visa to relocate to Australia, but we are uncertain whether his bankrupt status in the US will impact. I have done a search on this excellent forum and it seems that this should not affect his ability to apply and (hopefully) obtain a visa to come to Australia. But it's the first part of my question above that we're struggling to find information about. 

Thanks, y'all.


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## stormgal (Sep 30, 2009)

First, I am not a financial advisor by any means.

Filing for bankruptcy and moving overseas may be a dumb move on his behalf (strategically speaking). But it all depends on what kind of debts they are.


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## kevinh_nguyen (Jun 23, 2012)

towbro said:


> Hi there, all.
> 
> I have a fiance who, because of the economic downtown in the US, has been struggling to pay off debts and is considering applying for a Ch 7 Bankruptcy petition to wipe the slate clean.
> 
> ...


Filing bankcrupcy & moving to Aus are 2 different things. Filing on chapter 7, you will need 30 days after the filing date to go to the court. If everything is ok, the court will discharge in the same date. Then you can move or live anywhere you like. Unlike Aus, they forbid u to travel out of the country like 3 years or something.
Advise him to speak to the lawyer asap to prep the case. Chapter 7 is simple & easy to file as long as his income < 45k
Good luck


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## towbro (Jan 5, 2013)

kevinh_nguyen said:


> Filing bankcrupcy & moving to Aus are 2 different things. Filing on chapter 7, you will need 30 days after the filing date to go to the court. If everything is ok, the court will discharge in the same date. Then you can move or live anywhere you like. Unlike Aus, they forbid u to travel out of the country like 3 years or something.
> Advise him to speak to the lawyer asap to prep the case. Chapter 7 is simple & easy to file as long as his income < 45k
> Good luck


Thank you, Kevin. Can I just clarify what you meant (we WILL see a lawyer as soon as we can afford it, but for now, we're just trying to wrap our heads around potential issues) -- you say he would be able to move or live anywhere he likes... but he can't leave the US for about 3 years? That is, he can move or live anywhere in the US but not overseas?


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## kevinh_nguyen (Jun 23, 2012)

towbro said:


> Thank you, Kevin. Can I just clarify what you meant (we WILL see a lawyer as soon as we can afford it, but for now, we're just trying to wrap our heads around potential issues) -- you say he would be able to move or live anywhere he likes... but he can't leave the US for about 3 years? That is, he can move or live anywhere in the US but not overseas?


Let me rephase it:

1. If he did not file bk, he sill can move & live overseas without any restriction. It just a bad credit showing on his credit history. Bad credit in the States is normal. It s not a misdemeanor or felony charge against him. So don't worry about it. There is no record in the police dept or fbi.

2. If he file a chapter 7, After he get discharge, he can move and live anywhere he likes including overseas (no restriction at all)

3. I said in Aus, after you file bk, Aus goverment forbid you to travel overseas about 3 years but not in the States.

3. Speak to the bk lawyer in the US is free, you only pay the fee when you are ready to do it. I believe the fee is about $1,600.


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