Unpaid Credit Card Debt: Consequences for Overseas Filipinos and their Families

Question:

I received a demand letter from a bank concerning a 12-year unpaid credit card. I am not living in the Philippines anymore. Will it affect anyone in my family if I don't pay it, or if I visit the country?

Answer:

Statute of Limitations:

Time Frame: The Civil Code of the Philippines sets a statute of limitations on collecting certain debts. For written contracts, such as credit card agreements, it is usually ten years.
Legal Standpoint: If the debt is truly 12 years old and no legal action has been taken within that period, the debt may be considered "stale" under the statute of limitations.

Consequences for Family:

Not Directly Affected: Generally, your debt is your responsibility and should not legally impact family members, unless they are co-signers or guarantors of the debt.
Harassment: However, debt collectors might attempt to contact your family to locate you, which could be distressing for them.

Travel Consequences:

Immigration: There's generally no immigration impediment linked to private debts, unless a criminal case for fraud has been filed and a hold departure order issued.
Legal Risks: If a civil or criminal case has been filed, it's possible that a warrant for your arrest exists. This could be acted upon when you return to the Philippines.

Legal Options:

Negotiation: Contacting the bank to negotiate terms for settlement is an option, although the age of the debt might complicate this.
Legal Advice: If you're unsure of your legal standing, consult a Philippine lawyer to understand the specifics of your situation.

Conclusion:

The age of your credit card debt may place it beyond the statute of limitations for collection, but this doesn't guarantee that you or your family will be free from hassle or legal consequences. The specifics of your case, including any legal actions taken by the bank, will be critical in determining your risk.

Disclaimer:

This article is intended for informational purposes only and should not be considered as legal advice. Consult a qualified attorney for advice tailored to your situation.