I'm trying to help my brother out with his credit. At 20, he owes thousands in everything from medical bills to bounced checks to unpaid CD club dues. His current attitude is to ignore the 2-3 collection agency letters that arrive for him daily. Since he has had his mail forwarded to my house during a recent move, I now get the associated collection calls...hooray for reverse phone directories. I am trying to convince him that he needs to either file for bankruptcy or go into credit counselling before someone gets a judgement against him and starts garnishing his wages. He naively feels that they can't do any such thing if they don't know where to find him. So, I am looking for two specific pieces of information from you experts: 1) How overdue or high must a balance be for someone to bother garnishing, or does it just depend on how rabid the creditor is? 2) Is BK a realistic option for someone so young and so over his head? OK, so I lied, I guess I'm looking for three pieces of information... 3) They CAN garnish him, even if they don't have current contact information or employment information, right? I assume creditors have access to the same new hire reporting database that the family court system utilizes to track down deadbeat parents who job hop to avoid child support. Thanks again for all the great advice...I learn so much by reading these posts, but nobody else seems as screwed up and determined to hide as my silly boy!
1*.He naively feels that they can't do any thing if they don't know where to find him. 2*Is BK a realistic option for someone so young and so over his head? 3*I am trying to convince him that he needs to either file for bankruptcy or go into credit counselling mireland *********************** 1*He's to late they already have him screwed - he just don't know it yet. 2*Only as a last resort after all other options have been exhausted. Same goes for CCCS Which is almost as bad or worse than BK. 3*Better make sure there no other way first. THE END ** *** ** LB 59 """"```--~~~~~~~~~--```'""'''
Rabid the creditor... It IS realistic, but is he broke or just irresponsible, or doesn't understand money management, etc? Depending on what is going on, it may not only hurt him as it is the 10yr kiss of death, but it may not teach him anything... With a couple of exceptions, they have to sue him before they can garnish him...if he has ignored all this, I would be concerned that he has or will ignore court summons. Does he understand if he ignores one of those, he will lose period? Or does he think if he doesn't show up they can't get a judgment? Mind you - I'm not judging your bro, I'm just concerned that he is young and dumb, and BK or CCCS won't TEACH him financial management for the future. BTW - I have a handy dandy 2 x 4 out back if you think that might be the way to go
lbrown59, In what way is CCCS worse than BK? Are you judging both options on their effect on one's credit score, or on the overall outcome? I have no experience with either, so just looking for a more expanded opinion. In this case, I think credit score is the least of our worries. keepmine, The debt was primarily incurred while he was in AZ, but he's in NV now. When did he last pay? I find that question amusing, simply because in most of these cases, we're talking about medical bills, bounced checks, magazine subscriptions, etc. that he never actually paid...just signed the obligation to pay and then ignored all subsequent bills. They range in age...probably the oldest being 3 years (though questionable as he was a minor) and the newest being six months old. Thank God he's bounced so many checks he can't get a checking account anymore. jlynn, Don't apologize for judging him...I do it on a regular basis, and I'm SUPPOSED to like him. He his young and dumb, and his biggest problem right now is that when he gets a little money in his hands, he either pays something that "MATTERS" (cell phone, rent, cable bill, high-speed internet bill) or he just blows it. For him, there is no perceived value in paying off an old medical bill, for example. He doesn't perceive that his creditors are capable of doing anything more than sending letters and calling, and especially since HE'S not the one getting the mail and phone calls right now, that's not even an annoyance. Neither his credit score nor the morality of paying one's own responsibilities appears to matter to him. The handy dandy 2x4 is sounding like a great option, but I suspect that his first judgement, which I now see as unavoidable, will have the same effect. Dare I hope that losing 25% of his paycheck to pay for a $15 bounced check to Pizza Hut (now grown with fees and legal costs to God-knows-what proportions) will be the wakeup call he so urgently needs? At least I have the sense now that bankruptcy isn't the answer--I'm not as worried about the effect on his score (already sub-500), but I think it would give the wrong message. He got here through his own stupidity and irresponsibility, not because of some uncontrollable life circumstance; giving him a clean slate would just reward that behavior. Thanks again, all.
I can say that at about the same age BK turned my whole life around. My debt was mainly from a medical issue and a doctors mistake. That, combined with a lot of debt from school had me way over the edge. Don't brush off BK just yet. I am not saying that BK is a good thing, or that it is the right thing, but it got me out of a horrible situation and taught me a lesson I will never forget. Unlike in my early twenties and late teens when I could get any credit card by signing my name, after BK I had to EARN every card and LOC. I also had to think twice (or even three times) about every purchase (not only because of what I had learned but because of low limits). Because of what I went thorugh then, I am extremely credit-wise now. I manage my money very well. I am just at 30 and not only sit in a very good spot now but have a definate plan for my future and retirement and invest a good portion of my earnings. If you think he can learn from the situation, and it appears to be a viable option for him, don't be scared of BK. It does not 'kill' you for then years as most would lead you to believe. I had my first house just over a year afterwards and a credit card the month after I discharged. However, if you think he will 'abuse' it, simply get more credit afterwards and do it all over again, it's probably not a good idea. Hope this helps, Shawn
A minor can't enter into an enforceable contract. You and he need to figure out what bills he incured prior to turning 18 and, send a too bad, not legally responsible letter. Demand that collections stop and the item be deleted from his credit file. Here's Nev. bad check fees. STATE: NEVADA â? INTEREST RATE Legal: 2% Over Prime Judgment: 2% Over Prime STATUTE OF LIMITATIONS (IN YEARS) Open Acct.: 4 Written Contract: 6 Lease: 4 Domestic Judgment: 6 Foreign Judgment: 6 BAD CHECK LAWS (CIVIL PENALTY) Amount due, protest fees three times check amount not more than $500, or less than $100
Re: Re: Advice for a young man in DEEP **MANY people have reported that they could NOT get a 100% secured credit card 2 years post CCCS...they MUST accept mortgage rates ABOVE 10%...and they have not had much success having the CCCS notations removed from their credit reports... BK is not good by any stretch of the immagination...BUT at least people can get a 100% secured card 2 years post BK and home loan under 10% YMMV
At 20 years old, he may not appreciate how these CA accounts and other debts will hold him back. Maybe not now, but one day he will probably want to buy a house, and then he will understand when his credit is so lousy a lender won't give him a mortgage and he will be restricted to renting......at least until he repairs his credit. If any of these creditors get a judgment within the SOL, they can keep renewing these and any of his assets/bank account/wages could be at risk, almost for an indefinite period of time as long as the creditor continues to renew the judgment. I don't know the likelihood of a creditor obtaining a judgment against him at this point. It depends on a lot of things, none of which are certain. But, IMHO, seems that at 20 years old, his income wouldn't justify a judgment and the fact he has no assets would likely discourage a creditor from going through with obtaining a judgment. Also, with a lot of CA accounts reporting on his reports, it might make him look like an noncollectable dead-beet, which would discourage creditors again from getting a judgment. He **might be judgment proof**. But then again, if he owes A LOT OF MONEY, that is more incentive for the creditors to obtain a judgment. Whether a creditor will seek to obtain a judgment or not, is never certain, only that they must do it within the SOL. HTH
It is not uncommon for a 20 yr old to get into debt... thats when I started getting into real troubles. After 7 years of credit hell and virtually no credit, I have no desire to be back there again. If the debts are below 2K or so, the likelihood is that he will not be sued (no guarantees of course)... my highest was 5K unsecured CC, and they never got a judgement. If he goes the way of CCCS, he is going to have to be responsible enough to make a monthly payment to CCCS and it doesn't sound like thats going to happen (didn't work for me at that age either). My point here is... if he doesn't WANT to get his credit situation together now, then its not going to happen. Best to let it go and let him learn his own lessons about credit and money management (of course you can be open if he asks your advice). PS. If he doesn't want to get the calls and letters from CAs...have him send out cease and desist letters.
If he doesn't see the harm in what he's doing then he won't be concerned with taking care of these issues either with CCCS or with Bk. Let him make his mistakes and he'll grow up eventually. In Ga, if you bounce a check they'll arrest you and collect that way. I'm guessing that'd wake him up. anyway... If you don't want to see the daily issues of his life, have his mail forwarded to his current address (or get him a po box for 6 months). Tell creditors he doesn't live there and if they continue to call you can send a cease and desist (it lets them still sue, but not harass you/him anymore). Until he's wanting help, you can't really do much. As for bk or CCCS, there's no point unless he stops acting irresponsibly. When he wants things to be better is when you start making decisions on how to make them better. Once you get there, I would agree CCCS is a waste of time. I know of nobody who has gone through it who would recommend it. If he is in so deep that he need a bk, let him do it before he tries to accumulate assets as he gets older. In the interim, bad credit is his best friend. He can't accumulate any more debt because nobody will give him any.
on the medical bills ---- was he covered by insurance at the time? don't mean to pry, but if his medical condition can be considered a disability, he might be able to get medicaid, which can be retroactive in picking up previous medical expenses. tboy
lbrown59, 1*In what way is CCCS worse than BK? Are you judging both options on their effect on one's credit score, or on the the overall outcome?I have no experience with either, so just looking for a more expanded opinion. In this case, I think credit score is the least of our worries. keepmine, 2*When did he last pay? I find that question amusing, simply because in most of these cases, we're talking about medical bills, bounced checks, magazine subscriptions, etc. that he never actually paid...just signed the obligation to pay and then ignored all subsequent bills. They range in age...probably the oldest being 3 years (though questionable as he was a minor) and the newest being six months old. mireland 1*Both score and reports.Which can affect the the overall outcome? of both CCCS and BK. 2*Not meant to be amusing as it could have an effect on the best approach to take.
if it were me...and i had to do it over, i'd have filed bankruptcy right away..especially if i knew there was no way i could pay the debts i had accumulated. as for the checks..you should pay those ASAP. the way it is in texas, is they go to the DA..he gives you a chance to pay (like 10 days or something) then it goes to the judge..once it goes to the judge..you are screwed. even if you pay you still have to go through the court process.
At 20 years old, I needed an older brother to set me help set me straight. My friends and peers certainly weren't going to help. Some time ago, a C'Netter described his intercession into his sister's financial life for her own good. He first took physical control of her income. Paid the bills that were payable, put a small amount away in a savings and allowed her a token amount of discretionary funds--walkin around money. It was the only way to stop the immediate problem of her burning her money or throwing it in a black hole. Sounds like your brother might similar tough love. At 20, he seems a little too young to comprehend the differences between behavior-induced bankruptcy and circumstancial bankruptcy. And IMO, CCCS and the like are not good options either. They often exascerbate the problems. I've gone through a BK and I've used CCCS in the past. I didn't fully appreciate the bankruptcy until I took personal inventory of my circumstances and the behavior that led to some of them. Your brother's going to need a crash course in financial maturity; today's credit industry is much less forgiving than it ever was. He's gonna have to confess his irresponsible behavior, accept the consequences that may come and move forward toward paying what he's responsible for. Once he makes that commitment, credit clean-up gets a little easier.
