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What happens if I no longer have items to which the retailer has a security interest?


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I have substantial debt, mostly in bank credit cards. Not reading the contracts carefully, I also have debts with Best Buy and Lowes, which apparently keep a security interest. I am 73 years old and live only on my social security and $125/month from freelance writing. The SS money goes into my checking account, and I cash the $125 check. I talked to an attorney, and he told me it was foolish for me to declare bankruptcy because that is for people wanting a new start. I do not want a new start. I am concerned about the secured items. I am moving to Mexico in January, and will ship most of my belongings there. I will no longer have the secured items in my immediate possession here in the states. What will happen if Best Buy and Lowes insist I give the items back?

Thank you.

simonize

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I highly doubt that Best Buy or Lowes will demand anything back. If they did, they probably wouldn't be able to sell them for what it owed.

Since I saw you're moving to Mexico, I thought I'd also make you aware of a couple of one thing...

** Maintain an American mailing address. Once your creditors learn that you have departed the country, the debts can be tolled (meaning that if you ever come back to the US, it will be as if you never left). I have a PMB in AZ for that very reason.

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Just curious. There was one time a number of years ago when I was offerred a job in Bermuda. We were wondering what would happen to the debts.

So, what happens if they get a default judgement against you when you are out of the country, but have an American PO Box?

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I was going on my usual visitor's visa and apply for the FM3 after I get there. Every book I have read indicates it is a mistake to apply for it in the states.

I have a furnished apartment in Mexico, and I thought I would ship my smaller items ahead. Now that I think about it, that might not be the best idea. The shipment would arrive before I do, and I can see a customs nightmare, plus duty.

I know I have to have an FM3 before I can open a bank account. I already have a Mexican ID with my apartment address on it. Do you think I should apply for the visa before I leave?

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You could apply for the FM3 visa there... just be prepared to wait in some major lines. I went with a friend a couple of months ago, and we waited almost 6 hours before seeing a clerk, who stamped a few things and told us to go wait in another line...

I never did bother with an FM3 only because I have dual citizenship. I paid a small "fee" to expedite the necessary stuff (passport and ID).

If you maintain an FM3 visa for 5 years, then you too can apply for Mexican citizenship.

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In don't know if this should be a new thread. I've never joined a forum before. My question is this: I understand the bank has to hand over money to a creditor who sues me and garnishes my bank account. The only money in my bank account comes from Social Security. I can make the creditor give it back, but there is a lot of red tape involved. My account is never more than $850. What is your experience with this situation, and how would you suggest I handle it since I'll be out of the country?

Thanks.

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