Had to post this - Student loan fugitives

[forextrades]

Tuition should have some correlation with the amount of money someone can expect to make with that particular degree.

A music major shouldn't be paying the same $ per credit that an engineering major pays.

 

[Fractals 'R Us]

Hypnotized chickens commentary here on youtube.....

http://www.youtube.com/watch?v=JCwl0jhmyyY

I was just realizing, if a person goes 7 years without making any payments then your record clears itself... get credit at 18 and get it as big as possible and default every seven years, you can do that 8 times in a normal lifespan... probably to a total of... who knows... um... 10 cards time $25k, quarter mil every 7 years or so... I certainly hope nobody is doing that... what a horrible thing!!

 

[forsalenyc]

Quote from Fractals 'R Us:

Hypnotized chickens commentary here on youtube.....

http://www.youtube.com/watch?v=JCwl0jhmyyY

I was just realizing, if a person goes 7 years without making any payments then your record clears itself... get credit at 18 and get it as big as possible and default every seven years, you can do that 8 times in a normal lifespan... probably to a total of... who knows... um... 10 cards time $25k, quarter mil every 7 years or so... I certainly hope nobody is doing that... what a horrible thing!!

maybe everything except the student loans......student loans never ever disappear. i wish they did though....got so many years of payment left...sigh

 

[Fractals 'R Us]

Ok, what if you got a lot of credit cards, took cash advances... oh never mind, they told me I would settle down some day, they were nuts!!

 

[Vinny1]

If one dies and has debts, must the debts be paid before the heirs collect their money?

 

[gnome]

Quote from Vinny1:

If one dies and has debts, must the debts be paid before the heirs collect their money?

Yes. Creditors get paid as part of the estate settlement process. However if assets are insufficient to satisfy creditors, they can't collect from relatives... except likely from a spouse.

 

[GermanTrader]

Quote from gnome:

Yes. Creditors get paid as part of the estate settlement process.

Quite right, which is why my folks divided their estate up before they died. No taxes, no probate, no sibling rivalries. And why I will do the same thing.

If the surviving parent does this a year or more before death, creditors have little or no case to claim assets now owned by the kids or others. Smartest way to do it.

Why don't all parents do this? Because they don't want to die. Emotions cloud logic. The wife's emotion controls her logic (which is her weak spot) since the husband often dies first. The kids don't support her giving everything away first, because they don't want to plan on her dying. But smart parents will handle their money in such a way to serve their heirs best and to leave them a good example.

 

[Mecro]

Quote from Vinny1:

I have a friend who just stopped paying his student loans about a year ago to Sallie Mae. He owes them about $30k. He just doesn't care about his loan and just refuses to pay.

Would they have to take him to court to garnish his wage?

Would they have to take him to court to garnish his bank account?

The creditor can go get a judgement, usually a default because the debtor does not show up. Then they can proceed with garnishing wages and your bank account, that is after they determine that you have no assets to go after.
States have laws regarding the wage garnishment, there are often limits and provisions to allow the debtor to survive. Similiar rules apply to bank accounts. Wage garnishment goes through the employer, bank garnishment goes through the bank. Both can be avoided and the game can be played indefinitely.

 

[Vinny1]

Quote from Mecro:

The creditor can go get a judgement, usually a default because the debtor does not show up. Then they can proceed with garnishing wages and your bank account, that is after they determine that you have no assets to go after.
States have laws regarding the wage garnishment, there are often limits and provisions to allow the debtor to survive. Similiar rules apply to bank accounts. Wage garnishment goes through the employer, bank garnishment goes through the bank. Both can be avoided and the game can be played indefinitely.

If you are self-employed, I assume they can't garnish your income somehow then?

 

[Fractals 'R Us]

They can go after your bank accounts, typically that is where your income stream is. People fend them off from that by not giving the bank account numbers but collectors use tricks like getting you to write them a check under some false pretense then they go straight over to the bank and lock things up...

The world becomes unreal, sort of, when you default, nobody will tell you the truth, the collectors will say anything, third parties don't want to help somebody that is defaulting, they see you as a criminal or something, good advice is hard to get even from the websites that specialize in it and Attorneys are not too helpful even, and most people hand out this conventional wisdom that they believe that is largely urban myth...