Can USA bank send collection agency to recover money in India

30-Jul-2023 (In International Law Law)
I am asking this question on my friend's behalf. My friend is under extreme financial crisis and personal problems. He moved back to India 4 months back since his visa got expired. . Currently he has unpaid credit card debt of 75000 dollars, belonging to multiple US banks. And he doesn't has any ability to pay the same. Kindly answers the below questions:- 1) Can any judgement passed in USA against him on this matter in his absence be valid in India? Because he will not be able to attend any court hearings to explain his circumstances . 2) Is there any option for settlement, just in the case if some international collection agency contacts him in India? 3) Does bankruptcy filed in India, help to close this matter? 4) He surely can't pay back the amount of 75000 USD. What are the best options he has right now? Kindly advise. 5) Till date he hasn't been contacted by any collection agency while being in india. Can any collection agency track him/contact him in india?
Answers (4)

Answer #1
529 votes
Yes of course judgement passed in USA will be valid in India. However he must file for bankruptcy in India. That would help him. And yes you can of course settle the matter through international arbitration. Kindly contact a lawyer
Answer #2
748 votes
What was his statua in USA/ visa category?
How many years he was in USA?
1. Any judgment passed in usa can be execute in india followed by legal procedure.
2. There is option for settlement available., I have to check ur complete case file/detail baat remedy available as per our case.
3. U can file bankruptcy in USA , if u intend to file bankruptcy in india , u have to clear hurdle ( difficult in india, easy in USA).
4. We can appear for him in USA to defend his case/ file bankruptcy/ settlement.
5. Yes any collection agency can file a case against him for record or execute the order of USA court in indian court.
Pls fix a meeting with all documents and case detail , ao that best remedy/ advise can be given .thnx
Answer #3
834 votes
If you do not make credit card payments, it’s all recorded and it can be taken against you. 750000 $ is certainly a big amount. If they have to make any action against you, they will have to first run by their courts/or take a permission.

They may also directly file a case against your friend before courts here in India.

A case may be filed and non appearance may lead to ex parte case. But during the time of enforcement of that judgment here in India, we can prove that we were not served with a proper notice.

There are certainly options of settling up which I suggest the best. Any lawyer may also make an offer to settlement to the correspondences exchanged between the parties.
Answer #4
595 votes
Ex parte judgement can be enforced under the provisions of CPC. Sanjeev Magoos judgement. Bankruptcy can be invoked. But given the situation the best option could be arbitration in this matter. Yes can be tracked through diplomatic channels via invoking insolvent code under the United States treaty on IB of which india is a signatory.

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at and has been responded by one of the Divorce Lawyers at to address the specific facts and details.

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