Non payment on credit cards consequences????

Question

I just found out that my dad payed for mine and my brothers tuition fee by charging them to his credit card and incurred circa $250,000 worth of debt through various credit cards that he's not going to be able to pay considering that his business is only source of income (personal business) is in jeopardy.

Credit card companies constantly send out notices via mail, since they cant reach us because everyone in our household changed their cell phone numbers.

Are there any LEGAL consequences that he can face such as jail time or repossessing his vehicles or house???

Thanks.

he stopped paying his credit cards of August 06 ...

Answer 1

They will put a lien on the house if it goes that far. his best bet is to call a credit counseling place or file for bankruptcy if his business is already going under.

And yes, they can sue him.

Answer 2

Here's how it works.
The bank asks for it's money nicely.
Then not-so-nicely.
Then it sends it to a creditor.
The creditor threatens, abuses, screams, sends dirty letters, threatens some more.
The creditor passes it on to many more creditiors.
They all gang up, until you're afraid to answer the phone.
They take you to court.
You either pay up, or declare bankruptcy (saying you have NOTHING, no assets etc).
Bankruptcy costs money most people who need to apply for it don't even have.
They repossess whatever you have on lease.
Then they take what you own.
They continue to harass you.
Court again, if you are not bankrupt by now, the lawyers will make you so.
Your credit rating is 0: meaning you can't get a credit card, a loan, or even rent a U-haul.
Yeah, it's pretty ugly. And he's not very wise to get himself into that. My guess is that he figured it would be a better risk to put his own credit/money/life on the line than to have you put yours on the line by taking out a student loan to pay for tuition. It's a 'parent sacrifice' kind of thing.

The best thing you can do, is excel in school, win as many bursaries and scholarships as you can, and get to work right away so that you can afford to help dig him out of this hole.

Answer 3

Yes. Failure to pay a credit card company can result such actions. But it will go through court first. As for how much jail time...it depends on the entire situation. A couple of years ago they have changed the bankruptcy laws. So it will be hard for your father to file a chapter 11.

Answer 4

hmmmmyou arew donerign if there are any legal ramifications, yet you are receiving court papers in the mail? Sounds like you already ahve legal consequences. What you will probably find out is that his home has a lein on it (if he owns it) and as soonas he might sell it, the money will go to thowse lein holders. So, basically, unless he does something (like get a lawyer and figure out what to do), they weill eventually go after everything...home, vehicles, anything of value, including his business assets. Better use care.

Answer 5

I think it depend's on what they view as his intent, if he was making payments all along and fell on hard times, they probably will work something out, but he'll still have to pay....on the other hand, If he was running up credit cards with no intentions on paying, and the creditors can prove this in court.....I'd say it dont look promising for dad, sorry.....
creditor's will follow you beyond the grave.

Answer 6

It was very nice of your farther to use his credit to facilitate your education. You do not go to jail for owning credit card companies. However, they can sue and get a judgement against your farther--Meaning he can be exposed to wage garnishment and so forth.

Answer 7

thats a substantial amount of money, and it probably would have been better for him to take out a loan.

i dont think that he can go to jail provided he is making some payments. he will have bad credit, and if he doesnt pay it off in his lifetime, the debt may be passed to you and your brother.

Answer 8

non payment will definatley incur late fees and other fees.
but not jail time.
If he's in trouble with his bills he should call and let them know.
they can freeze payments based on hardships.
Set up smaller more affordable payment schedule. hope this help gl~

Hey I just found this site great info should help as well:
http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/Your5MinuteGuideToManagingDebt.aspx

Answer 9

Yup. You're talking about 1/4 of a million $$$. He's in deep doo doo unless he makes contact to work out payment.

Answer 10

every thing you mentioned is a possibility.. they can also garnish his wages, take any thing of value such as furniture house car stocks bonds, etc.. if hes that far into debt the only thing i could think of is declaring bankruptcy...