Unable to pay?

In December 2013 I got my last savings, which I spent the half of on visiting my ex. The rest I spent on fixing my computer and helping out my family. However, I took 2 loans to cover the Christmas and my family, I've been loaning them money and I had to keep my family from knowing I wasn't getting a fast income.

Now, things have changed and I'm now in a very bad situation. I have no money and I can't pay the loans back.

I've done the good thing and stayed in contact with the companies and I've kept them up-to-date with what's going on. Right now, I have the option to "stall" my case with one part, they're very kind but it's a loan that has now been tripled 2 times.

I'm fiercely looking for a job and I'm trying EVERYTHING to just find some cash.

I know it was stupid to take the loans, but I honestly thought I'd be fine to pay it back, but nope, things just have to get in the way.

Does anyone have any experience with not being able to pay back?

In the US we don't generally have personal loans without giving up collateral and, if you can't pay back, whatever you put up to get the loan gets taken by the loan holder (house, car, whatever has been pawned, etc.). I don't know how they do it in Denmark.

Nat92, sorry that you got yourself in financial trouble. I know sometimes companies will work with you to pay and even cut the loan in half if you just make an effort to pay. I would keep trying to find work. Or if you have anything that you could sell to raise the money, I would. I hope things work out for you.

Thank you, I was kinda looking into that. So far, they've been very understanding.

(1) The only thing I know of is to file for personal bankruptcy. You'd have to check to see if the facts of your case qualifies for personal bankruptcy. If if you are eligible for it, you will still have to make a judgment as to whether it will be helpful to you.

(2) I think most people who file for bankruptcy hire and pay an attorney to handle it. However, there is no law requiring the hiring and using of an attorney.

(3) I believe that there are some good web sites out there that explain the personal bankruptcy process. As I understand it, you must find which court to file in, fill out the right form, and submit that form to the clerk of the court. I think there is a filing fee that you must submit at the time you file the form. I imagine that there are web sites and books (perhaps by Nolo Press) that explain a "do it yourself" way to file for bankruptcy.

(4) There is no need to feel ashamed about filing for bankruptcy to get creditors off your back. GIGANTIC and small businesses DO IT ALL THE TIME! In 2008, gigantic banks and General Motors got BILLIONS of bail out dollars given to them by the Federal Government, and the executives of those places still took many millions in salaries after running their companies in to the ground. In America, financial disasters are possible. So, bankruptcy is there for that, both for individuals and for corporations.

(5) Don't be intimidated about filing for bankruptcy. It really is a just a matter of filing out a form correctly. If you've ever done your own tax forms, you can probably do a bankruptcy filing too.

(6) Also there are legal document preparation companies. They cost, but might be cheaper than an attorney. They help non-lawyers fill out legal forms correctly, or, so they say.

(7) I just don't know of any other way to make a debt like this go away, well, except getting a job and getting on some kind of repayment plan with the creditor.

(8) I'm sure you know about the various nonprofit organizations that help debtors negotiation repayment plans with creditors. Some of them are called "credit counselors." Some of them may be scams. But some are legitimate. Do your research.

(9) Just a tip: Don't trust your creditors or collectors working for them. Yes, keep in touch. But don't assume that they are "nice guys" and that they will follow the law. So, above all, be careful about what personal information you give them. You never know what they might do with it. They may start requesting that you give them all sorts of personal information, such as your driver's license #, your SS #, names and addresses and phone #s of friends and relatives, the name of your doctors, the names of your children, the year and value of your car, the value of your house, the medications you are taking, the pharmacy you use, where your kids attend school, where you attend church, etc. Bill collectors in general have a LONG and SORDID history of doing illegal, unethical, and truly HORRIBLE things to people who own money. You can always just decline to give them info that they request. Probably it would be best to say, "I'll get that to you later," but then never do. Yes, they may threaten you. But so what. All the bad things they may threaten to do to you they will do ANYWAY if they want to and if the think it is worth if for them. Most of what they threaten they will never do, since it just isn't worth their time and effort.

(10) I believe most debts become un-collectible after 3 years, due to the statute of limitations. That is, they will be unable to get a court to issue a judgment against you after 3 years (from the date you took the loan, I guess, or perhaps from the date you made the last payment). But they can still send you threatening letters forever claiming you must repay the money. And they can still sue you, even after 10 years or more, but if you show up in court (as you should), you can just prove to the court that 3 years has passed, and the court will dismiss the suit. But if you never pay the debt, the "ding" on your credit report will last more than 3 years. I don't know the exact number of years. I assume plenty of web site explain this.

(11) You perhaps could find an attorney who would, for FREE, assess the basic facts of your case and tell you if bankruptcy is available in your case, and if it would be beneficial. An attorney might offer that service for free, in the expectation that you would then hire him/her to file the case for you. But you could then just go and file it yourself. Just a thought.

I have unpaid debt from college loans, and I don't really plan to try and pay it since it really is not in my budget. Things are probably rather different in the U.S then Denmark, but for that issue I can send the collections agencies a letter demanding they do not contact me further....then they would have to cease communication but can still seek legal action like taking it to court, thing is that would probably cost them more than I owe so I doubt they would.

Maybe the better way to handle it is save up and try and pay....but I don't see how that is fathomable. So yeah not entirely sure the best way to go about paying a debt, but I have the experience of owing back loan money.

In the U.S. every state has its own statue of limitations. In Texas for example, it's 4 years. Some are even longer.

Once the statute of limitations has passed, then TomThomas is correct. If you are sued & go to court over a debt, then as long as you are able to prove that you are past the statue of limitations, the case will be dismissed. So keep your paperwork.

Generally speaking, bad credit marks stay on your credit for 7 years. Collections stay about 7.5, & bankruptcies can stay on either 7 or 10 years, depending on which kind it is. A judgment (when you are sued & the other person wins) can stay on your credit 10 years or more, because some states allow judgments to be renewed, meaning a new period of x years for this to continue being on your credit.

I hope this information helps someone.

Unless you get a job and start making payments, your credit score will be bad and take time to rebuild; which will hurt you in the future. I am more concern on your spending habits. Spending your savings on visiting your ex, taking out two loans for covering Christmas and loaning money to family members was a bad financial decision and I hope you can learn from this. Not paying, is only giving the company the possibility to profit more from interest. Going bankrupt or settling things in court is no win win situation. Good luck and i hope you can find a job soon!!!