I have about $30,000 in unsecured debt that I accrued during college (credit cards, loans...). Now I'm working overseas and don't make nearly enough to pay minimum payments. So I've let everything slide for 6 months (not proud of it). Recently my relatives have been getting calls from collection agencies looking for me. I don't plan to return to the US for at least another 7 years, which is the time delinquencies are reported to the credit bureaus, so I'm not too concerned about my credit score. But I am concerned about my relatives being bothered by their attempts to locate me, since they don't know about my debt. What would happen if they decide to sue me? How likely is it that they'll sue me if I have no personal asset of any value, no employment (that they know of), and they can't find me? How would they serve me with the lawsuit? I don't wanna seem totally irresponsible, but I can't possibly repay the amount (even in monthly payments) in my current situation.
2006-12-13 16:02:42 · 10 answers · asked by Swooned 1 in Business & Finance ➔ Credit
I just wanted to clarify that I am currently overseas and don't plan to acquire any kind of credit or loans in the next 7-10 years.
2006-12-13 16:24:26 · update #1
Your credit is screwed for about 7 years until the record is expunged from your credit history. During those 7 years, no bank or creditor will finance you and your ability to secure any loans or credit cards will be gone. If you file for bankruptcy, the record stays for 10 years. If the creditors serve you with a court order and you decide to leave the country instead of answering the court order, they can get a warrant for your arrest, which means that as soon as you decide to come back to the USA, you will have federal marshalls waiting to arrest and extradite you to the state in which you are being sued. Think about what you are doing and if you are willing to become a fugitive. You cannot simply run away from being sued, because the courts will find you and issue summary judgement against you, and most likely will arrest you for failing to respond to the court order.
2006-12-13 16:07:44 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If they can't find you or your income stream you are CLEAN; the judgement expires in 7 years.
If none of your family co-signed and you are an adult then it could be considered HARRASSMENT!
The initial loaner sold your debt to a bottom feeder, also know as factoring, for maybe a dime or less on the dollar. If they collect the FULL amount they are looking at $27K pure profit and they are NOT going to vanish easily.
There is some collection person chasing a $2.7K commission and the bosses are PUSHING. They will probably push it to a judgement and you just no show.
Now here is the BAD PART! If you were under legal age when you incurred the debt they MAY be able to go after your parents successfully and file a judgement agaist THEM, THAT WOULD SUCK POND WATER BIG TIME! If that happens do NOT come HOME because your parents and family are going to be PISSED!
Little lecture...you got the education, playing where ever you are playing and left DEBT that your FAMILY may have to assume on your behalf.
Just THINK!
Happy Holidays,
J
2006-12-13 16:27:50 · answer #2 · answered by jacquesstcroix 3 · 0⤊ 0⤋
If they sue you and obtain a judgment, you need to understand that California judgments are good for 10 years and can be renewed indefinitely. They also accrue 10% interest. If you have bank accounts or other property hear, a judgment creditor could go after it. In they do file a lawsuit and get a judgment, the amount due on the judgment would double to $60,000 after 7 years.
On the other hand, the creditor may do nothing. If they do not file a lawsuit with 4 years after your last payment, the claim is time barred.
2006-12-16 13:20:49 · answer #3 · answered by Carl 7 · 0⤊ 0⤋
They really can not do much. Tell your relatives to say you move to California and they never hear from you and if they keep calling they will turn them into the FBI for un-due harassment. Make sure they get the name and phone number of those calling and the time. If they call back, turn them in and sue them for mental duress. That help your relatives make some extra cash. In time the Credit Card Company will write it off as a loss as they do the Millions in Credit Card Fraud when cards are stolen. True, your credit be screwed, but, credit just a scam that plays on the Ego of people and those who want it now and then be too broke to have any more.
2006-12-13 16:16:09 · answer #4 · answered by Snaglefritz 7 · 0⤊ 0⤋
Well actually that is a myth about the 7 years. It will follow much longer than that, because once the original creditor gives up on trying to collect a debt it is then sold to another collection company whom then starts the cycle all over again. Here is the good news for you...Since it was unsecured debt you might have a chance. I would suggest to contact Lonnie at l.burgen@rmcninc.com Let him know that David B referred you but just talk with him and he could probably help and make it go away and save your credit too... Good Luck...
2006-12-13 16:15:54 · answer #5 · answered by D 2 · 0⤊ 1⤋
The only thing you will have is bad credit if you don't pay off the balance. With your balance being $550.00 It would make since just to get a part time job and pay it off then to ruin your credit. Did you know a lot of big companies will not hire you if you have bad credit. Your credit rating affects your life on a daily basis. If you can't handle your own affairs how can you handle theirs it make since.
2016-03-29 06:37:23 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Depends on who is your creditors, how much for each and, how agressive they are.
Some creditors will write it off if they can't find you for sometime. That will stay for 7 years.
Some will go to court. If the court can't find you but, you have somekind of value(bank account, employment), they will garnish that.
Some will sell it to the other agency. This will be long before they give up(if ever).
As for your parents, they can simply ask for the name and business that is calling you. Then ask that they never call again.
It's the law, they have to stop calling if they're asked to stop(you, yourself can even tell them to stop). Once you tell them to stop calling, they will have to use other means to get to the debt.
2006-12-13 20:03:34 · answer #7 · answered by Tenny S 4 · 0⤊ 0⤋
Why cant you come back for enough time to prepare and file for chapter 7 bankruptcy? That would be the wisest thing to do.
2015-01-08 13:30:40 · answer #8 · answered by Dec07 1 · 0⤊ 0⤋
I dont own anything..rent a house..have a car that is paid for and I had ajudgement against me for $1000
go to www.moneymanagement.org they can help answer your question accurately.
2006-12-14 00:54:14 · answer #9 · answered by Samantha 2 · 0⤊ 0⤋
Jail time.
2006-12-13 16:09:53 · answer #10 · answered by Repeat Offender 2 · 0⤊ 0⤋