Escape From Debt By Moving To A Different State?

Debts are plaguing. Many times you don’t plan to get into it, but circumstances get in the way. And when you are trapped in debt, it is not only embarrassing, but it does try to steal your peace of mind. You often feel like your creditors or debt collectors are all over you all the time trying to get what they can from you. It is overwhelming. Knowing you currently do not have the means to pay them off can be frustrating.

 

On the other hand, moving to a different state is refreshing. For most people, a move means a chance for a fresh start. So there is the temptation to want to move as a means of escaping debt. But the question remains: Is it possible to escape from debt by moving to a different state?

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No escape, really

When you move without leaving a forwarding address or contact information for your new location, it does only a temporary good. It can only give you a break from the constant contact your creditors make to remind you of your debt. In the long run, there is really no escape.

 

What about your credit score? When your creditor reports your debt to a credit reporting agency (like Equifax, Experian and Trans Union), and your debts are recorded in your credit report, it will have a negative impact on your credit score. And you know what that means. It follows you everywhere you go. Getting loans will be difficult, and sometimes other things like insurance or rent, too.

 

If there is a court ruling against you that shows you are legally responsible for the debt in the previous state, when you move, your creditor or collector can file a copy of that judgment in your new state where they seek its enforcement and the court will send a notice of the filing to you. In some states the process may be complicated for the creditor, but ultimately, they will still get to you.

 

What to do

If you have genuine reasons why you have to move, your debt should not keep you back. However, you can deal with the issue by getting an attorney that is good at debt negotiation and credit repair. This will cost you some extra bucks, but can eventually help you reduce your mountain of debt. Only make sure the person you hire has experience and good success record on the matter.

 

If the move is out of concern for your debt, after negotiating with your creditors, you may decide to look for states and cities with the lowest cost of living, where you can make something good out of a modest income. This works well when you have a work you can do anywhere you are. With the extra savings at your new location, you can begin paying off your debt.

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