Friday, October 26, 2012

Bankruptcy – The Risk Of Incurring Serious Debt In Argentina

In the U.S., bankruptcy is the only way out of serious financial debt, but you can’t do that in Argentina. If you open up a business and it fails, you’re responsible for the debt incurred. The same goes for personal debt like credit card, car payments, or utility bills. You simply can’t declare bankruptcy here.

Consequences
If you fail to pay your debt, you could find yourself unable to leave the country until the debt is repaid. This depends on how big the debt is and how outstanding it. If you’re already out of the country when your bills become delinquent, you may run into problems when you re-enter the country.

Word of Advice
If you’re an expat and have become a resident or a citizen of Argentina, live within your means. Be careful about jumping into any business ventures. If you plan on opening up a business, have a back-up plan in case it fails. Be careful. Pay your dues. Know how taxes work in Argentina and how to pay them or you will be stripped to the bone.


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