Thinking of Renouncing Your Citizenship to Escape Your Debts?
The thought of ditching your debts and moving to another country may be a nice fantasy, but there are pitfalls. In this article, we’ll talk about it.
Record Number of People Renouncing US Citizenship
It seems as though more and more Americans than ever before are turning their backs on their homeland and renouncing their citizenship. According to the latest figures, the number of those giving up their US passports in 2015 skyrocket to 18 times as many compared to the totals from 2008.
While immigration into the US is a hot button topic for a myriad of reasons, there is an increasingly growing number of people eager to get beyond what they view as Uncle Sam’s greedy fingers. Why would anyone in their right mind willingly leave the US? The most common reasons are tax laws. Let’s face it: few countries can compete with the US when it comes to the notion that the last person entitled to your hard earned money is you. The US government has it down to a science. In fact, through laws like the Foreign Account Tax Compliance Act (FATCA), the US will tax you your income wherever it’s earned. Also, if you owe taxes to the feds, the IRS now has the power to cancel your passport.
The Good and Bad News About Your Debt if You Decide to Make a Run for the Border
While it will definitely be more difficult for your creditors to collect on your debts if you make a run for it, rest assured that your credit will be ruined. Now, the good part about that is that a credit review will most likely not be part of the entry process for your destination – even if you have filed for bankruptcy. The bad part is that establishing credit in another country is much harder than it is here in the US, which means you’ll probably have to stick with cash for your purchases.
Consequences of Renouncing Your US Citizenship
Before you start booking airfare, you need to know that it’s an irrevocable decision. Also, you’ll no longer:
- Enjoy unrestricted travel into and out of the US
- Be able to vote in US elections
- Have US government protection and assistance while traveling overseas
- Be able for your children to have automatic citizenship if they’re born outside the US;
Facing Crippling Debt and Looking for Answers? Call The Oswalt Law Group
Dealing with debt can be paralyzing for some. If you’re in that situation, you should know that there are host of options available to you. Call us here at The Oswalt Law Group for a free initial consultation. Our number is (602) 225-2222.