Hi...nice forum, thanks for allowing me this place to research and VENT! Here's the story; My brother (50), while laid off from work, managed to injure himself rather severely. He has no insurance, he's broke and he's currently living off every CC imaginable. He has an excellent credit history and continues to get new cards almost weekly. The problem is...I don't think he intends to ever pay them!! He has mentioned "moving out of the country" and I have informed him that he can run but not hide from creditors and also could end up in jail. He shrugs this off and is just really angry at the world. His wife is not on any of these cards but I worry about her and the kid. She says they owe "close to $100,000" but my brother just won't stop. I think divorce is forthcoming. I think they have around 300,000 in equity (their house) and that is in his name. Won't the creditors take his house (and equity) and force her and the kids to the street? Will her credit be trashed as well??? Could they both end up in the slammer? Trying NOT to get involved is much harder than I had hoped. Thanks in advance for yout thoughts and suggestions.
First of all, regardless what collectors will tell you, there's no such thing as debtor's prison. They won't go to jail unless it's something like unpaid child support or bad checks. If she is not a joint account holder, she is not liable for the debt. If she is, she will be liable as well, divorce or no divorce. The creditors could take him to court and get a judgment. Whether they can force the sale of the house depends on your state laws. In many states, they can put a lien against the house. That means that when it's sold, the lien would have to be paid from the proceeds of the sale. But in many states they cannot force the house to be sold.
Thanks for the reply, Hedwig. They are in Hawaii and I think Hawaii's laws are pretty tough on this stuff and assume this is why he would leave the USA. Is there a site that would say for sure? Surely he can't just keep taking cash from his cards....this seems akin to bad check writing to me.
I think she will leave before it gets to that point. He loves her and as sensible as she is...I think his desire to make her comfortable is atleast partially to blame for his mess. Anyone else have anything to add? I'm not telling him that there is "no debtors prison" because that fear may benefit him...but could he lose his house?
You'd have to check Hawaii laws to know for sure. Even if they can't force a sale, if there's a lien against it that has to be paid when it's sold, then they wouldn't get anything from the sale.
Thanks again, Hedwig. Any idea of where one could find such information? I really need to get her some info....then bail on this before it hurts my marriage as well. It's just really sad. 3 years ago he was on top of the world, now he's anti-social and not much fun to be around.
She could probably consult an attorney where she lives. Many of them give a free initial consultation. Also, check the state web site for state statutes. Or contact the state Attorney General's office and ask them where the information is available. Most states have at least something online. If she lives near a university with a law school, they probably have a law library. Some of the professors may also be able to point her in the right direction.
Sorry Hedwig but in Massachusetts we do have *debtors prison* : ( What I mean by this is if you do not go to court and ignore payment they will arrest you and also recently a lawyer who owed a client money and said he did not have it is in jail for not paying : )CapeCodTimes.com - Federal judge will free Birchall from Cape jail Massachusetts has antiquated laws for sure. Woofer
