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Big debt in foreign bank

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Fajosst

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Jul 10, 2019
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#1
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I have a debt of 40K EUR in a Swiss bank.

I am from Brazil...I don't live in Switzerland, but I would like to know what the possible consequences are.

Can I be forbidden to go to Switzerland? In the European Union? Can I be arrested for this? What are the legal consequences?

At the moment I cannot pay the debt, I would like to know what kind of attitude the bank is likely to take.

If someone knows the Swiss civil code, it would be interesting to know how long it takes for the debt to "be forgotten"...thank you!
 
#2
If they have your address on file, they will send debt collectors after you where you live.

If it hasn't gone that far yet, you can try to contact the bank and work out a payment plan. If your financial situation changed (loss of job, business failure, and so on), that's something the bank will usually be understanding of. Having a customer fail to pay back a credit card or loan on time is part and parcel of running a bank. It happens all the time. Yours is relatively small, compared to people with housing loans or large business loans.

An unpaid debt cannot under any normal circumstances affect your ability to travel across the EU or Switzerland. Failure to pay a debt is not itself a criminal offense.

If it has gone to debt collectors, it's most likely too late to do anything with the bank. Instead, speak with the debt collectors about a payment plan.
 
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#3
Well, I'm reading about it.
Apparently the most likely thing is that they make a lot of calls, send e-mails, and after a while transfer the case to a debt collecting agency. A personal visit is very unlikely...

I don't have a fixed residence, I'm a digital nomad, I don't have assets, salary, etc...I believe there are chances of not having serious consequences.

The worst case scenario I see is a possible lawsuit collecting the debt, if that happens, I can keep $0 in my bank in Brazil to avoid possible freezing of the money (I don't have a house, car, etc that can be pledged).
 
#4
They cant do anything, they will just send threatening letters or hand the debt to an agency and if they cant reach you on your address etc they will just write it off. Mind you bank loans are insured anyway they will get their money back. The only other thing they can do is perhaps list you as a defaulter and that means if you ever try to borrow again you might not get a loan or credit card. This is the only threat but if you know you wont need to borrow again then you good. Tough on them they will get over it. Thats a small ammount.
 
#5
djaheim said:
They cant do anything, they will just send threatening letters or hand the debt to an agency and if they cant reach you on your address etc they will just write it off. Mind you bank loans are insured anyway they will get their money back. The only other thing they can do is perhaps list you as a defaulter and that means if you ever try to borrow again you might not get a loan or credit card. This is the only threat but if you know you wont need to borrow again then you good. Tough on them they will get over it. Thats a small ammount.
Click to expand...

that' s what I thought, thanks for the answer
 
#10
Fajosst said:
yes, it's gambling addiction, buddy...

does the fact of being a credit card debt change anything regarding the legal consequences you mentioned in your comment?
Click to expand...
No it's all the same unsecured debt, Credit card, overdraft and personal loan. They can't do anything to you and to sending baliffs to Brazil is a waste of time.

How did you pull off a 40K limit as a non resident.
 
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#11
Most jurisdictions have a 6 year limit. If you dont acknowledge the debt in writing or any any payment then the debt becomes statute barred. Typically if they know you are offshore for such a small amount then it's an email or phone call harrassment deal . After 6 years , although the debt is still owed, there is no legal recourse to collect and it will have disappeared off your credit score.
You can even get credit again in Switzerland at that point ..should you wish although probably not at the same bank.
 
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#12
CaptK said:
No it's all the same unsecured debt, Credit card, overdraft and personal loan. They can't do anything to you and to sending baliffs to Brazil is a waste of time.

How did you pull off a 40K limit as a non resident.
Click to expand...
sorry to take so long to answer, I just saw now

I had + 40K EUR balance in the bank
the more balance, the more credit
this is how it works with swissquote
 
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#13
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#16
Fajosst said:
sorry to take so long to answer, I just saw now

I had + 40K EUR balance in the bank
the more balance, the more credit
this is how it works with swissquote
Click to expand...
Is this then not some kind of margin trading account which you have already pre-funded?
Then they just take your collateral which is placed under them already.

I have a similar account but not in Swiss. Can take out cash for stocks and if I don't repay they sell my stocks (or if the stocks go down a lot).

There is a case for naked credit cards but I am not sure if you have one.
But nevertheless, you have not much to fear even if this debt is from a naked credit card which then puts you balance into -
 
#18
dragodrago said:
Are you referring to Swissquote’s secured credit card? If so, you should be fine as you already placed a security deposit and they will just take it if you don’t repay.
Click to expand...
My thoughts exactly. If they gave you 40k CC, you must have deposited that amount with the bank? If that is the case, they will just take your deposit and you are good.

However, if you scammed them out of 40k (somehow), they will for sure send debt collecting Agency after you. You must be careful as they might take your property if you have some and block your bank account in Brazil. If some funds touch your bank account, they will take it.
 
#19
Mark Rucken said:
My thoughts exactly. If they gave you 40k CC, you must have deposited that amount with the bank? If that is the case, they will just take your deposit and you are good.

However, if you scammed them out of 40k (somehow), they will for sure send debt collecting Agency after you. You must be careful as they might take your property if you have some and block your bank account in Brazil. If some funds touch your bank account, they will take it.
Click to expand...

Really? It's very difficult. Do you think Brazil has double treaty with Switzerland for confiscating your funds...Hmmm, sounds weird. And, of course, there sould be a court order preceeded by judge decision on that
 
#20
Just send swissquote a updated proof of address for your new residence in Timbuktu.

However I am interested how this debt happened. I know a few brokers lost money when oil futures prices went negative as it wiped out their clients equity in their portfolios for example. IB lost $88m during that time but mostly due to their platform not coping with negative value...lol.
 
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