[Ruthanne3]

Son (over age 21) was gullible. Long ago acquaintance introduced him to person who supposedly wanted to invest in new business. Son and acquaintance set up small business and investor put $25,000 in bank. Son signed all bank papers (without really understanding). Money showed in account. Acquaintance spent money (son signed checks) for supposed business set-up. Acquaintance skipped town. Money was never really there -- showed on bank internet, but apparently was bad check. Son is now served with civil warrant. Son has nothing. He has called several attorneys and they say they never heard of such a thing. Acquaintenance in jail for other charges. Investor's location, ID, unknown. In no way can son pay - already over his head in long ago stupid debt. Admits he has to learn every lesson the hard way! What does he do now? Civil warrant says to appear in court next week. Tennessee mom.

[Fr_Chuck]

Don't know why they have never heard of this, check schemes are done every day to 1000's.
So he has to pay the money back, he can sue the other person and try and get some money, but he needs to work out a payment plan, or they will get a garnishment on him.

[Ruthanne3]

I thank you for your prompt answer. Ethically he would like to pay as he knows he was stupid to believe this old acquaintance really knew someone who wanted to invest and start a company. The reality is that he can't pay. The old acquaintance is in jail for another matter. He was listed as a "partner" in the new business license. The investor was known by this old acquaintance and her location and possible true identity is unknown to my son. Since this was a business checking account and the other person was a partner is he at least only responsible for half? The final check of about $12,000 was written directly to this old acquaintance. My son was finally getting bad feelings and when the old acquaintance ask for the money my son (stupidly) wrote the check and said here take it, we're through. He never thought about the fact that the money that showed in the bank account would be withdrawn because the deposit was withdrawn. This whole mess happened in a matter of about 3 weeks. Is bankruptcy an option? He really cannot pay this. He has no assets (renter). Thanks for any advice you can give.

[excon]

Hello R:

You say he can't pay, but he can and he will. That's because when they get a judgment against him, they'll attach his bank accounts and garnish his wages... I know you say he doesn't HAVE assets, but the judgment will last 10 years and they can renew it for another 10 years and then maybe another 10 years after that.

So, unless your son plans on becoming an outlaw for the rest of his life, he's GOING to pay.

Bankruptcy?? I don't think $25K qualifies, but you can check it out. I'd call a couple lawyers and ask, plus I'd ask how much they'd want to represent him. Plus, if there's a criminal problem (see below), he won't be able to discharge the debt in bankruptcy.

Is the partner responsible?? Was it a JOINT checking account?? That's the only issue here in terms of his relationship with the bank. Yes, your son can sue the partner and the other guy too, if he can ever find him (good luck with that).

Even if it WAS a joint checking account, the bank can still go after your son for the full amount. That's what the term "jointly and severally" means. They can go after either party for the full amount.

Now, he might be able to make a deal with the bank for a settlement that is LESS than he owes, but it's going to take some CASH to do that. I don't know. They might settle for $10K. It's certainly better than a sharp stick in the eye which is what they'll get if they try to sue...

Another issue to be concerned about is the cops... Somebody cheated somebody, and if somebody calls the cops, somebody might go to jail. Your son is a likely candidate, cause he's the one holding the bag... I don't know if the bank is going to call them. Wouldn't you??

What I WOULDN'T do is just sit back and let things take they're natural course. I'd intervene as quickly as I could. If you just let things go, nothing good will happen.

excon