Paying off a contract

They can insist he pays the sum in full the moment he quits.

Since that is likely not likely he has the money to pay that they no doubt wrote into the contract a payment plan of $200/week. Of course I have not read the contract but I am sure it is there. I am also sure that the OP didn't bother to read the contract before he signed it.

 

How about honoring the commitment you made and complete your contract as agreed?

In other words, keep your word.

 

Lets say it's in the contract and he did sign it without reading it. They can ask him to pay it all at once, he can refuse. They can then try to make him pay 200/week, which he can also refuse.

Now they can either take it to small claims court or they can sell it off to a collection agency. Option #1 is pretty unlikely but even if it's done he will end up with no hit on his credit rating and the judge will set up a payment plan he can afford. The object is to always find a path to repayment that is doable, not to break someones spirit. Option #2 is most likely. He'll take a small hit on his credit rating (assuming is rating is in decent shape now) and he'll be able to set up a much more reasonable pay schedule with the agency. As long as he makes those payments he'll be in the clear.

My point is, it's not a life changer. No one can make him make payments that are out of reach. 200/week is ridiculous.

Do I condone signing a contract then reneging on it's conditions? Of course not. I'm simply saying they cannot force him into anything.


Ed

 

This is one of the most pernicious urban myths regarding debt collection.

 

How about he pay what he can afford instead of what they "insist" he pay? I'm not advocating he not pay at all, that would be wrong. But no reason to not make the payments more reasonable either.


Ed

 

That wasn't the commitment he made when he signed the contract.

He needs to honor the commitment he made and stop trying to weasel out of his obligation.

 

Actually it's quite true once the debt is in the hands of a third party collector. For the original debt with the original lender, not so much.

Ed

 

They will still report him as delinquent and can still pursue judgment/garnishment against him. This "I'll just send whatever I can and they can't touch me" is a bunch of bull ####.

 

No, it wasn't. As he already stated 200/week wasn't in the contract, it's what he was told by an advocate AFTER the fact.

As seen here.


Ed

 

Personal responsibility today is about extinct. Approximately half our country believes it is OK to rack up debt and default and let somebody else pay for it while they are on their brand new smartphones and have 4k led tv with $200 mega cable bill with all the channels. It's the new way of thinking, sadly some of us are out of touch and still believe in the morality of things and get stuck with supporting the other half.