Bankruptcy and the Risk of Incurring 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 try to re-enter the country. 

Word of Advice 

If you’re an expat and have become a resident, or have dual citizenship, live within your means. Be careful about jumping into any business ventures or buying properties. 

Don't fall for any quick schemes. There are plenty of con artists in Argentina. 

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. 

You should also be aware of this annoying little fact. Even if you pay off your credit card debt, the company will continue to charge you monthly fees which will accrue and turn into a larger debt overtime.

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.