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Unsettled debts: Can they file a case against me from my home country?

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  • Unsettled debts: Can they file a case against me from my home country?

    Question:

    I live in the USA. I left Dubai and migrated 3 years ago with unsettled debts (credit cards and personal loans). I don't have any work since then and do not have the capacity to settle them. Collection agents are coming to our house in our home country and even called our home phone threatening my family. I also received emails but I did not reply because they might trace my location and make problems with me. Also, I received emails from the Department of Foreign Affairs with an order of deportation. My question is, they can file a case against me from my home country? I will be deported or even put in jail when I go home?

    Answer:

    It is stated at Owe Money? Be Careful, or You Might End Up in Jail | Alternet as under:

    "Right, but they're not. They can't. In this country, owing money is not a criminal offense. It is in Dubai, where nearly half of the prison population is behind bars for defaulting on bank loans. But in the United States, incarceration for debt was abolished in 1833, and now debt itself is a mere civil matter. Sure, collection agencies want you to think the FBI cares whether or not you pay that Nordstrom bill. But they risk losing their licenses for so much as implying this, thanks to the U.S. Fair Trade Commission's Fair Debt Collection Practices Act, in effect since 1966."

    In the United States, incarceration for debt was abolished in 1833, and now debt itself is a mere civil matter. Owing money is not a criminal offense in USA but it is in Dubai.

    It has been stated at 18 USC § 3181 - Scope and limitation of chapter | Title 18 - Crimes and Criminal Procedure | U.S. Code | LII / Legal Information Institute as follows:

    "18 USC § 3181 - Scope and limitation of chapter

    (a) The provisions of this chapter relating to the surrender of persons who have committed crimes in foreign countries shall continue in force only during the existence of any treaty of extradition with such foreign government.
    (b) The provisions of this chapter shall be construed to permit, in the exercise of comity, the surrender of persons, other than citizens, nationals, or permanent residents of the United States, who have committed crimes of violence against nationals of the United States in foreign countries without regard to the existence of any treaty of extradition with such foreign government if the Attorney General certifies, in writing, that—
    (1) evidence has been presented by the foreign government that indicates that had the offenses been committed in the United States, they would constitute crimes of violence as defined under section 16 of this title; and
    (2) the offenses charged are not of a political nature.
    (c) As used in this section, the term “national of the United States” has the meaning given such term in section 101(a)(22) of the Immigration and Nationality Act (8 U.S.C. 1101 (a)(22))."


    The surrender of persons who have committed crimes in foreign countries shall continue in force only during the existence of any treaty of extradition with such foreign government by the United States government. However, credit card default is not a criminal offence in USA, therefore, you may not be extradited to Dubai for credit card default from USA.

    In Montalbano v. HSN, INC., Dist. Court, ND Illinois 2011 (- Google Scholar) it is stated as follows:

    "Personal jurisdiction comes in two forms: general and specific. Where the events that are the basis of the lawsuit do not arise out of and are not related to any activities within the forum state, the minimum contacts requirement is satisfied if the court has general jurisdiction—that is to say, jurisdiction stemming from the defendant's "continuous and systematic" contacts with the forum state"

    Even if the credit card default is outside your state of residence, on the basis of minimum contacts requirement the district court of the county where you are resident will have jurisdiction in the matter.

    In Viasystems, Inc. v. EBM-PAPST ST. GEORGEN GMBH, 646 F. 3d 589 - Court of Appeals, 8th Circuit it is stated as follows:

    "For an individual, the paradigm forum for the exercise of general jurisdiction is the individual's domicile; for a corporation, it is an equivalent place, one in which the corporation is fairly regarded as at home."

    It is further stated therein:

    "Specific personal jurisdiction can be exercised by a federal court in a diversity suit only if authorized by the forum state’s long-arm statute and permitted by the Due Process Clause of the Fourteenth Amendment. See Romak, 384 F.3d at 984.2"

    The individual's domicile will decide the court for exercise of general jurisdiction. However, specific personal jurisdiction can be exercised by a federal court in a diversity suit only if authorized by the forum state’s long-arm statute and permitted by the Due Process Clause of the Fourteenth Amendment.

    Further it is stated in U.S. Supreme Court Reaffirms Stringent Test for General Jurisdiction over Foreign Manufacturers – Martindale.com as follows:

    "General jurisdiction allows the defendant to be sued in the forum state, irrespective of the nature of the cause of action and of its connection with the defendant's forum-related activities."

    The defendant can be sued in the forum state, irrespective of the nature of the cause of action and of its connection with the defendant's forum-related activities.

    It is stated at Credit check: Debt sentence | GulfNews.com as under:

    ""UAE law deems it a crime when a cheque is returned due to insufficient funds," said Jafar Al Touq, a lawyer practising in the UAE for 26 years. "Those who think that sitting in jail without paying a loan is a temporary, short-term way out of debt are absolutely wrong. Otherwise, I will also do the same thing - borrow, then stay in jail for a while and keep the money."
    The process in a bounced cheque goes roughly like this: a customer defaults on a loan or credit card payment, the bank recovery team hounds him and submits his security deposit cheque (which will bounce). The lender then files a criminal case for the bounced cheque and the defaulter gets jail time.
    Though a subsequent civil case may not necessarily mean the defaulter stays in jail forever, Al Touq said: "He [the borrower] will stay in jail longer [than the original jail term]. It's the system's way of putting pressure on the defaulter. If there's reason to believe fraud has been committed then the judge will put him behind bars longer.""


    In Dubai, the defaulter for bounced cheque may get a jail term. If the money is not returned then the jail term may extend longer.

    Conclusions:

    1. In the United States, incarceration for debt was abolished in 1833, and now debt itself is a mere civil matter. Owing money is not a criminal offense in USA but it is in Dubai.
    2. The surrender of persons who have committed crimes in foreign countries shall continue in force only during the existence of any treaty of extradition with such foreign government by the United States government. However, credit card default is not a criminal offence in USA, therefore, you may not be extradited to Dubai for credit card default from USA.
    3. Even if the credit card default is outside your state of residence, on the basis of minimum contacts requirement the district court of the county where you are resident will have jurisdiction in the matter. Money judgment may be taken in USA.
    4. The individual's domicile will decide the court for exercise of general jurisdiction. However, specific personal jurisdiction can be exercised by a federal court in a diversity suit only if authorized by the forum state’s long-arm statute and permitted by the Due Process Clause of the Fourteenth Amendment.
    5. The defendant can be sued in the forum state, irrespective of the nature of the cause of action and of its connection with the defendant's forum-related activities.
    6. In Dubai, the defaulter for bounced cheque may get a jail term. If the money is not returned then the jail term may extend longer.

  • #2
    Re: Unsettled debts: Can they file a case against me from my home country?

    How about saudi law can they file a case in your home country?

    Comment


    • #3
      Can be extradited to Canada for personal loan default?

      Comment


      • #4
        Re: Unsettled debts: Can they file a case against me from my home country?

        Originally posted by mjuanitas View Post
        How about saudi law can they file a case in your home country?
        A person can be sued for a debt in the country where the debtor resides. And the often do.

        Comment


        • #5
          Re: Unsettled debts: Can they file a case against me from my home country?

          Originally posted by Unregistered View Post
          Can be extradited to Canada for personal loan default?
          In order to be extradited from one country to another, the offence must be a crime in the host country, the country where the person is residing or found.

          Being delinquent on a debt is a crime in Arab Middle Eastern countries, but not in Canada and the Western World. Therefore Canada would not honor a request to extradite someone to another country for an alleged debt because it is not a crime to be delinquent on a debt in Canada.

          On the issue of extradition, too, there must be a treaty between the two countries to extradite for crimes. Where such treaties exist, they are usual for serious crimes like murder, drug trafficking, sex trafficking, slavery, child pornography, major bank/ investor fraud, some of the crimes spelled out in treaties between countries.

          Of course, since an unpaid debt is a civil matter, not a crime in Canada, to the question of arrest much less extradition to another country -- the answer is, "No."

          Comment

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