Help legal Question

Ok, normally, I would sooooo steer away from posting such personal and private info online, but I am really really worried and I just can't tell Rod about this at all (will explain later) Anyhow, I know some of you have worked or do work in lawyers offices or maybe some of you have personal experience and can help me out here.

Ok. Deep breath. Ages ago, my Mum went guarantor (sp, I know) on a loan for a car for my SIL (stupid, I know, I so wouldn't have advised her to do it, but...)with a finance company. Anyhow, as I could have predicited, they have defaulted on the loan, and wound up gettting the car reposessed around september/october last year. now, I would have known nothing about this (quite gladly, too) had my poor mother not rung me absolutely distraught in tears when she got the repo notice in the mail, as the finance company couldn't get in touch with my bro and sil. I texted him and asked him to please get in contact with mum, as she was very upset, and it was fairly urgent. Anyhow, that turned to sh*te, and he really had a go at her for telling me, and stopped her from seeing his kids etc and was generally very nasty for her telling me because we are "rich and smug about money". I told him I couldn't give a rats about his financial situation, but I was pretty upset that mum had been put in this position, especially as dad was dying at the time, and money was very very tight for them. Anyhow, he *said* it had been sorted out, and not to worry etc. So I didn't. Anyway, (and I'm not meant to know about any of this, because we are smug and rich) a couple of weeks later, car gets repoed, they only got $1000 for it at auction as it had no warrant, rego and was basically a wreck, so there was an outstanding balance, which they assured mum they were going to keep paying. In the same week, they get kicked out of their house for not paying rent (!! and they both have good paying jobs, and earn twice as much, if not more than mum does) once again, I *don't know about this*
Anyhow, long story short, mum gets a demand in the post yesterday from finance company for $2000 owing on car. now, of course, she knew she would be liable for this if this situation happened when she signed, but she was stupid enough to believe they were going to pay it! (she should know my brother better than that, but anyhow..)
Mum is on the widows bene at the moment, and is doing housekeeping and ironing to just get buy, as anyone who is on a bene knows how little you get. She ends up with about $54 a week after rent, so the cleaning and ironing keep her afloat *just*. I know this is *just* as we loaned her and dad the money to get up here and into a house, well, Rod did, hence why I can't tell him about this, as he is itchy about getting this back in the first place. Now, I can't afford to loan her any more money, firstly because we don't have it, and secondly, because she owes us alot already and I don't think she would take it, as she feels bad enough about how much she owes and how little she can afford to pay us back already, and wouldn't want to add to it.

So after all this ramble, what is causing me to lose sleep is this. Will the finance company bankrupt her to get the money? she says she has been in touch with them and they have told her not to sweat just yet, but I dunno.... Also, brother avoiding her phone calls, and I can't get involved this time, as I don't want to, and I'm not meant to know. I think the only reason why she told me is because she dosen't have anyone else to talk to. She is looking for fulltime work at the moment, as obviously her financial situation needs help, but I worry about the whole bankruptsy thing, as I know this can hinder job seeking as well... Even countdown does credit and police checks here!

So any advice would help, I am really worried. PM me if you don't want to be quite as open as I just have, but please don't put why in the subject, as rod checks our emails often like I do, and I really really can't tell him about this AT ALL.

I used to work for a finance company in the reposessions/collections area in fact, and I can tell you I never once got to the stage where I had to bankrupt anyone. I also don't recall it ever happening in the time I was there either so it is a rarity for them to go that far. Plus, for only $2000 and your mothers circumstances I believe as long as she keeps in contact with them about resolving things then they will be totally reasonable about it. That's the biggest thing about collections departments...as long as you don't lie about "cheque's in the mail" or anything like that, they will cut you some slack in terms of a financial agreement to repay money.

Unfortunately your mothers situation is all too common. It is possible her credit rating may already have been effected by this all as it sounds like things are very far down the track in terms of the car has already been sold. If the finance company don't come to an arrangement with your mum to repay the money then they will refer it to Baycorp so best not to let it get that far if she can help it.

Thanks guys. I went around there this morning to get to the bottom of it, as it was really worrying me, I am so angry at my stupid, selfish bro and SIL for putting mum in this situation (although she shouldn't have really gone g'tour, but thats her call..). Anyhow, she has been keeping in contact with the finance company, she has a reasonably good relationship with them, as she borrowed off them to buy their vehicle ages ago. She said they told her not to worry too much, that they had to send the letter as par for the course, as my bro and sil had made arrangements to pay the difference on what was owing after the car went to auction, but it turns out, they haven't recieved anything at all... the whole "cheques in the post scenario", AND to topt hings off, when they got evicted, of course, they never changed their addresses with anyone, so probably have creditors chasing them left right and centre. Mum was able to shed some light as to where bro and Sil have gone, and inform them that they had both bought "new" vehicles the week the car was repoed, so the finance company are more than happy with that, as they will now be able to resume collections with them instead of mum. Phew, I was just so worried, as it is really the last thing she needed right now. Hope it gets sorted. Damn stupid irresponsible brother. I'd be the first to admit I was never that flash with my cash when I was young, but at about 25 I woke up to myself and got myself sorted out, the difference here is that my bro is 28 with a family to support (when I was young and dumb, it was just me affected), so it makes me angry he can't see what a bad example he is setting for his kids, and how he could do this to his own mother. dick. this is the bludger one I was ranting about when Dad died, he never has any money and is always hinting about me flicking some cash his way "till next week". As if!

Yeah, thats what I told her as well. She felt bad about telling the company they both had gotten "new" cars (albeit both wrecks under $500)I said to her not too, as bro and sil obviously didn't feel bad about not paying the bills and putting her in this situation for a kick off. I think it had gotten to this point because they had moved and not changed address - obviously if you owe money to people and aren't paying, you don't do the change address thing? and also becasue they kept making promises to pay, then "dropped off the face of the earth". As the "gatekeeper" at my work, I'm always saying that I don't care if its only $5 a fortnight, as long as you are keeping in touch and making a small regular payment, and if you can't you are ringing me and telling me, not me chasing you!

hehe yeah I used to tell people that if i had to contact them again it would be to tell them Im starting legal proceedings so if the AP stops, you move or something goes wrong it had better be you ringing me to let me know.

Yeah but baycorp is way different to bankruptcy which i think was the major concern. And while they can go for bankruptcy, if you are on good terms with the company and make some attempt to repay its highly unlikely they will do the bankrupty thing unless they are pretty harsh.

I don't think she would be applying, I was more worried that they had gotten the run around from my bro and sil, and would just start proceedings to get the money, since she did sign a legal document accepting responsibility. Does Baycorp affect you for 7 years? I did not know that, I thought it was 2 or 3, but on your record for 5. I know bankruptcy affects you for a long time though. When we do fininace at work, we just have an automated system where we punch stuff into the computer, and it does its own checks without us ever seeing the persons records ( I feel bad enough turning people down, without having to see their sorry states!) Ah well, i guess she will live and learn. Thanks for the advice, Bombshell, I will pm you some more after she has spoken to the finace company again next week.

My BIL has been with Baycorp for years, and he is now 32 and is not able to buy anything on HP till he is 40, thats if a company will ever let him HP with his history.