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 is. 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 or buying properties. 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 could find yourself stripped to the bone.

Consult An Accountant 
Your best bet would be to hire an accountant. They can assess you better than any lawyer in Argentina. In fact, when it comes to understanding taxes, and laws concerning the AFIP (Argentina's version of the IRS), an accountant is your best shot. 

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