I owe the bank what is going to happen?

Question

i did something very stupid i opened and bank account online and then after awhile i overdrafted and after that i just keep buying stuff and it was going through now all this stuff adds up to like 1,000 or 1500 they dont have my current address or phone number but can they find me? can they take it out my pay? i know this was dumb and i regret it im young and always do stupid things on impulse but now im scared whats going to happen? i cannot pay back now but maybe in like 5 months someone help please

Answer 1

OK, don't panic.

The worst that will probably happen is that the bank turns it over to a collection agency who will call and send you nasty letters trying to get you to pay.  They may be rude and threatening, but since the amount is "only" $1500 they probably won't sue because it would cost them more than $1500 to take you to court.  

It is illegal to knowingly write bad checks, but unless you wrote a particularly large amount to one particular merchant it's doubtful that anyone is going to go to the trouble of filing a police report against you.  If your bank account had overdraft protection, then the merchants still got their money and your bank was left holding the bag.

As for finding you, banks and creditors can find you pretty easily by pulling your credit reports and checking phone listings, asking your neighbors, etc.  In fact, they probably will find you.  But again, they won't do much besides try to ask you to pay them and put it on your credit report and checking history, where it'll stay for several years.

Don't panic now.  If you can pay them in 5 months, then pay them in 5 months and relax in the meantime because that's all you can do.  They won't take you to court to garnish your wages over this amount, but it will show up on your credit report where it'll look very bad, and it will probably be impossible for you to open up another checking account until this is paid.  Even then, some banks may refuse to let you have another account for several years.  

When you do get the money to pay these back in 5 months, I recommend you call the bank or the collection agencies that will be handling the checks and try to cut a deal with them.  You can find out who they are by pulling your free annual credit report at www.annualcreditreport.com.  Try to work out a settlement that keeps you from paying the full amount.  Start by offering 20%.  Try to avoid paying over 50%.  Tell them this is all the money you have and you can't afford to pay more.  Then don't pay them ANYTHING until they send you something in writing confirming the arrangement.  Most collection agencies get paid on commission or buy bad debts at 10-15% of its total value, hoping to make a profit by working out some kind of settlement.  Since you're legally obligated to pay them, they don't have to settle with you, but most will because they understand it's better to get paid something than nothing at all.

Good luck.

Answer 2

$1500 is nothing to them. 50:50, if they cannot easily find you right away, nothing is going to happen. And if they do find you, negotiate with them, because they are generally willing to wait for five months if they think you will pay $100 cents on the dollar. All you have to do is offer them a good faith payment in the mean time of say $50.00 a month, promising the balance in full after the five months.

Because really, banks are losing billions on the bad mortgages they made. Your $1500 is a not a big deal.

But if you do not offer the good faith payment until you can pay it off in full, they will sell the debt to a collection agency and those people will not leave you alone. They will hound you day and night until you are willing to sell a kidney to get them off your back. And they will happily f up your credit rating.

Don't hire a lawyer though. The lawyer will cost you more than you owe and  you will still end up having to pay the debt.

Answer 3

You need a lawyer.