Credit Card debt

[uhurit]

$30k is a big chunk of change. 7 years is how long the **** will stay on her credit since the last delinquency entry on all 3 major credir reporting agencies. She will not be hounded overseas, but if she ever comes back before then, she is in deep trouble: collectors, possible lawsuits, wage garnishments and other unpleasant things.
After 7 years her debt will be sold to the junk-debt collectors, and they will contnue to hound her long after that

 

[milosz]

Are there any good online sources about bankruptcy - filing, pluses and minuses (aside from the obvious)?

I have several friends in trouble debt-wise (though none to the tune of $30k) and I'd like to lead them to good info. Everyone that pops up on Google is trying to sell something (either bankruptcy/debt management services, or financial planner NEVER DECLARE BANKRUPTCY info).

 

[erdawe]

If she flops here, what keeps her from flopping again when overseas?

 

[uhurit]

Originally Posted by milosz

Are there any good online sources about bankruptcy - filing, pluses and minuses (aside from the obvious)?

I have several friends in trouble debt-wise (though none to the tune of $30k) and I'd like to lead them to good info. Everyone that pops up on Google is trying to sell something (either bankruptcy/debt management services, or financial planner NEVER DECLARE BANKRUPTCY info).

Anything small (...none to the tune of $30K...) is not worth filing for bancrupcy for sure.

 

[teddieriley]

Originally Posted by JayJay

+1. She should consult with an attorney before she leaves the country. Some effort to handle this now would help in the long run.

Where is she going to get the cash to pay the attorneys fees? If the attorney is giving advice about her terrible finances, the attorney will certainly ask for a retainer.

 

[oneeightyseven]

Originally Posted by teddieriley

Where is she going to get the cash to pay the attorneys fees? If the attorney is giving advice about her terrible finances, the attorney will certainly ask for a retainer.

wouldn't he just give her the adive upfront and send her the bill afterwards, knowing that she would pay?

 

[sho'nuff]

You can't just file for bankruptcy on a whim because you decide to go abroad for awhile. Then anyone can do that. Filing for bankruptcy is not as easy as it sounds or as advantageous for you I hear. If I were the cc company I would easily figure she just wants an out on all the stuff she charged up.

Don't live beyond your means. Period. Too late to say that for her and that is not the topic of this thread but just worth mentioning once more again as others did.

 

[Phantom9309]

I want to say a couple of things first. I think the door to allowing people to pass judgement on your sister was opened the moment she considered running instead of facing the difficult circumstances she created. I normally try not to pass judgement on people in credit card debt until I know the whole story. Many people end up using their credit cards for health care and other important things that can lead them that sea of interest.

Now, does she have family in AU? I'm assuming she has family here so I suggest that she takes a real hard look at her spending habits and do a huge cut. She should expect to consume minimal leisure time that requires money for at least the next year. She should call her credit card companies to talk them into working with her. Either they will sell her debt to someone else which will cost them or they can take a smaller loss by figuring something out with her. Ebaying stuff to make a big payment wouldn't be a bad idea either. Anyways, good luck.

 

[JayJay]

Originally Posted by teddieriley

Where is she going to get the cash to pay the attorneys fees? If the attorney is giving advice about her terrible finances, the attorney will certainly ask for a retainer.
Good point, but at the very least she should try to work with the cc companies to design a repayment plan.

 

[KitAkira]

Originally Posted by teddieriley

Where is she going to get the cash to pay the attorneys fees? If the attorney is giving advice about her terrible finances, the attorney will certainly ask for a retainer.
Well, apparently she does have the money for a ticket to Australia (unless she pays for said ticket with the credit card(s) in question, in an ironic twist)

 

[IBJanky]

Just tell her to stay in AU for more than 7 years and it should all be erased from her credit record.

myke

 

[javyn]

Originally Posted by tiecollector

We can only wish this still happened.


You're joking right?

 

[Night Owl]

Originally Posted by Vault

Little advise needed here,my sister is moving to Australia for indefinite period of time.She has some credit card debt here in the US (probably in 20-30K range),she is unable to pay it off right now is wondering if the CC companies or debt collectors will chase her in AU.What could possibly happen while she is in AU,can her wages be garnished,etc?
thanks in advance

Is she hot because she could probably make 20-30k pretty quick, post pics

 

[FidelCashflow]

Originally Posted by IBJanky

Just tell her to stay in AU for more than 7 years and it should all be erased from her credit record.

myke

umm... you mean after filing for bankruptcy... right?

 

[jdcpa]

In response to someone's request for bankruptcy information. The Bankruptcy Court has some of the best information. See http://www.uscourts.gov/bankruptcycourts.html. The bankruptcy basics article is very thorough, though technical. I would start there. People will have different opinions on the benefits or risks are for bankruptcy; starting with an understanding what will happen is often beneficial. Again as I wrote before, this is NOT an easy option and it is highly likely she will not get a full discharge after the stay. Even if she did she would have to go through Ch 7 liquidation, which is very difficult. Also, the 7 year trick is likely not to work depending on how the CC companies choose to pursue this. They could just sell the debt to junk debt collectors. But even then either company could pursue judgments against her which are 10 year renewable terms. Lastly, if she hires an attorney. She is able to pay them from any money she has on hand because the attorney for the bankruptcy is generally a first priority creditor. (nice trick for bankruptcy lawyers). Good luck.