Australian Debt

[moonsecrets]

I used to live in Australia, as an Australian citizen, and ended up with a credit card debt of almost $7,000.

 

I was paying this while I was in Australia, but later moved overseas to study and didn't have the cash to make even the minimums (I was living in Taiwan, which is quite a low-income country).

 

In January I went back to Australia to visit family. I received a letter from the bank saying that my account had gone to collections and would stay there unless I paid $500 (a phone call to collections informed me that I only had to pay $250 to get the account back under the maximum and out of collections). I paid. I then looked into declaring bankruptcy (not an option for an Australian resident overseas) and a personal loan to reduce the interest (also not an option for an Australian resident overseas). So I've kinda been screwed.

 

Since returning to Taiwan, my fiance told me to just leave it, but I'm a little worried. I changed my Australian address to my Taiwan address to avoid my parents getting any letters (I was registered at their address) and had no contact for about 6 months. Now I've just gotten a letter telling me my debt (with fees & interest) is almost $7K and this has gone to collections.

 

I don't think they can actually do anything to me here according to Taiwanese law, and I have no assets in Australia at all (apart from my superannuation which I'll never get anyway, because I'm Australian (so you don't get it when you leave) and won't be retiring there).

 

All of my assets (my motorbike) and papers in Taiwan are under my Chinese name and using my UK passport (which I initially used to apply for Australian PR when I was a child). I also have a third western passport in my name.

 

I have two questions:

 

1) Can they do anything to me in Taiwan? What is likely to happen?

2) What would happen to me if I returned to Australia to visit? What if I returned using a foreign passport?

Australians can be made bankrupt for debts exceeding $5,000; bankrupted Australians are not allowed to leave the country and can be stopped at the airport. I wonder how that works if I'm not an Australian when I return?

Edited July 28, 2011 by moonsecrets

[cerberusalert]

1) Can they do anything to me in Taiwan? What is likely to happen?

Not unless there are reciprocal agreements between Taiwan and Oz which I very much doubt.

 

2) What would happen to me if I returned to Australia to visit? What if I returned using a foreign passport?

Nothing, it's a civil matter not a criminal one so immigration won't even know about your debts. So you can safely travel using your Oz passport.

 

Was there a gap of six years where you made no payment or written admission of this debt?

 

Were you resident in the Northern Territories?

[moonsecrets]

Thank you for your reply!

 

There has not been a gap of six years yet; the last payment was made in January of this year (2011). So there's still a long way before it's SB.

 

I was resident in Queensland.

 

As for the overseas travel, I'm worried about being declared bankrupt in Australia in my absence. Bankrupts in Australia are assigned a trustee and need written permission to leave the country, and can be put on a 'no departure watch list'. I'm not entirely sure if you can be made bankrupt when you're not resident, though.

[cerberusalert]

I don't think they can bankrupt a non-resident, besides which at a guess it would cost them around $1500 to do it and considering the amount they are claiming given the cost to them it would not be viable, particularly as they won't be guaranteed payment or whether you have any assets.

[moonsecrets]

Thank you... that puts my mind at ease!

[krios]

Just a note about your superannuation. First it is protected and secondly you can claim your super once you reach the preservation age for your super plan. You do not need to live in Australia to do this. Preservation age is different depending when you first started paying into the fund. Mine for example is at age 55. You can check with the company that your payments were made too.

Also if you give up your Australian nationality you can claim back the super as soon as that happens.

 

Also, just so you know. It is illegal for an Australian national to enter Australia on another passport. A visa can not be issued to an Australian National. I dont know i they would notice at the airport but not worth the risk?

Edited July 28, 2011 by krios
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