Fighting in the Jungle

Hey Scott,

My mother and her partner owe money left, right and centre -- in fact the sheriff is chasing them for more than $100,000. But they live in a caravan and are ‘on the run’ (not so much Bonnie and Clyde, more like postcard bandits). So both my brother and I are having the sheriff roll up at our houses looking for them. And we regularly receive letters from banks looking for them. What can we do to fix this situation? 

Fiona

Hi Fiona,

I see your postcard bandit analogy, and I’ll raise you.

They remind me of Hiroo Onoda.

Hiroo who?

He was a Japanese soldier in World War Two, stationed in a jungle in the Philippines.

Unfortunately, no-one told him the war was over, so he spent 29 years in the jungle believing it was still going.

In the same way, your mum and her partner still believe they’re fighting a financial war against their creditors.

The reality is that if they’ve got a sheriff chasing them they’ve already had a court judgement against them.In other words: the war is over, and they are the casualties.

The creditor has 15 years to chase them for the debt (well, in Victoria, other states differ). And during that time the creditor can enforce the debt by seizing their goods, garnishing their wages, or forcing them into bankruptcy.

So what can they do?

Well, they can pay the debt off in full (though that’s unlikely), negotiate to pay the debt off in instalments, or raise the white (financial) flag.

Regardless, the sooner they can call in the cavalry -- in the form of their local community-based financial counsellor (1800 007 007) -- the better.

Scott