what do creditors come after you? I mean what can they do?

Question

If you have clothes from second hand stores and a vehilce worth $1000 and living on a student loan, what can they do if you dont' have the money? It is $480 and I dont have it (the internet wont' let me out of my contract and I am a full time student with 2 kids). I moved to another state and that company doesn't run their service to my state so I had to break my contract when I moved. What can the creditors acutally do? Take my kids bikes to sell them?

Answer 1

Be formal about. Even though they won't let you out of the contract, write them a letter about it, keep a copy and send it registered mail. If they still pursue the debt, send them another letter, copy it and send it registered mail stating you are living in another state, on limited funds with 2 children and all you can afford to send them is a dollar a week. make sure you continue to send them a dollar a week.
If for some reason they still send the debt to a collection agency, DO NOT PAY THE COLLECTION AGENCY! It is YOUR right under federal law to pay your original creditor. If you get a call or letter from a CA, send them a cease and desist letter stating you have a right to pay your original creditor and to cease their attempts to contact you. After that, they may legally only contact you once, or risk a law suit where you can get more than enough money to pay the debt off. You can find sample Cease and Desist letters on the Internet.
Otherwise, they can completely screw up your credit, which could REALLY hurt you down the line when you need to get a different car, rent or buy a house, or get a job (lots of employers are doing credit checks now).
Good luck and best wishes.

Answer 2

Starting from the least...

1. Report the account as a negative on your credit. Read just a couple posts on here and you will get a clear picture of what a effect a negative credit profile will have on you, now and in the future.

2. Turn the account over to a collection agency. Double the hassle, double the pain. Now you have two lovely marks on your credit, and an agency tends to be more proactive due to the fact that they make money only if you pay.

3. File a lawsuit to secure the balance with a judgment. Based on where you live, a judgment could be held over your head for 10 years with an additional 10 years upon renewal. It continues to accrue interest during this time, so if renewed it becomes double the original amount and interest is figured on that doubled amount. Your life circumstances may not be such that they would get much off of you (no, they don't take kids bikes) but that doesn't mean that your future self won't have plenty of assets for them to attach.

I guess what it all boils down to is if it is worth it to take a chance with your future credit and security. The creditor might even work with you on a monthly payment plan that you can fit into your budget. Or, maybe this is all just naysaying and the creditor will just forget about it and you will never hear of it again. Best of luck to you.

Answer 3

You are judgement proof, and for $480, it's likely they'll take no real action, other than report the bad debt on your credit reports. That'll haunt you for 7 years any time you want to get a credit card or loan. You'll only be able to get the worst loans with high interest rates, if you get them at all.

If you had higher wages, they could go to court and get a judgement, and then garnish the wages. However all that is very costly. Certainly not worth the $480.

Answer 4

First, learn not to sign contracts you're not going to honor... It's probably NOT worth their time taking another deadbeat to court, so other than collection calls when they track you down, chances are it's just going on your credit report... Hopefully. You will need to eventually step up to the plate and make good on this debt, and they aren't required to take this off your credit score even after you pay it off, just note that it was paid.
That being said, you do what you have to do to take care of your kids, right or wrong... they come first. At least in that regard you seem to be doing the right thing. ;)

Answer 5

They cannot do anything before they take you to court and win a civil suit against you. For $480 it is unlikely that they will do that.
They may try to harass you into paying. But, keep in mind that they are powerless without a judgment against you.
Also, there is something called "judgment proof". That means that you very few assets and your state's garnishment laws may protect you from wage garnishment and liens on the few assets that you own.
They can, however, report you to the credit bureaus where derogatory trade lines remain on your reports for seven years after last delinquency.

Answer 6

no they cannot take anything, they do not have collateral (you did not pledge your home or furniture as security saying you would pay it). it's just an internet contract, nothing to worry about there. the only recourse they do have is to report it to the credit bureau as a unpaid debt. when you apply for an apartment, cable, loans, etc. they will pull a credit report on you and see it. they may ask you to pay it to clear up your credit record before they grant you any new services. but you can rest easy and they will not hunt you down and confiscate your kids bikes - LOL! i hope things improve for financially.

Answer 7

They will take a percentage of what you get paid. Until the bill is paid. A court order will take it out you will have no choice.