Need Advice on Handling a Deadbeat

[CC53]

What is the name of your state? KY

I own and operate a used car dealership in a town of 8,000 population. The majority of my sales are done with in-house financing. I have been in business over 15 years, and small towns being what they are, I am generally successful in collecting repo deficiencies. Employment locations are readily known, and I have an attorney who gets the judgment and then proceeds with wage garnishment. If people have become unemployed, I work with them to the best of my ability.

Now about my deadbeat. I remember him from school. He was a star athlete, and honor student. He got admitted to West Point, and became an Army Officer. He retired from the Army about 2 years ago. Most people who leave here and have success, never come back. This guy came back, supposedly "wanting a simple life".

Most of my customers are working folk, making $8-$12 an hour. So when the Army Officer walks in, shows me the paperwork giving him a $3800 a month pension as proof of income, I wonder what he's doing here? Any car on my lot can be bought for 1/3 down. This guy gives me $6000 CASH down on a 7 year old BMW, and I finance him $12,000 for 36 months at $440 a month.

All my cars are sold as is. The guy comes back in 2 months, drops the keys on my desk. Says "the car's a POS and to stick it----", and walks out. Well, I waited about 30 days and contacted my attorney. We filed suit for the $12K and won.

I don't know much about the military, but have always been told they enforce collection of debts against their members. My attorney has found that not to be the case. We have tried to garnish his pension and the military refuses to approve it. He has accounts in some Credit Union in TX. They come back as "exempt funds" (whatever that means) when we try to levy them.

Like I said, he has a $3800 a month income. He's single, rents a small apartment for $350 a month and his property has little value. His furniture, computer, TV, are all from the rent-to-own place. And listen to this! He's now paying around $800 on a month to month rental with the local Enterprise office on a new Cadillac CTS!

If this was a struggling family man, I would cut him some slack. But he's in his 40's, doesn't work, and lives like a bum. I want my money.

We've done a debtor's exam and everything else. The judge says nothing can be done. I think he cuts the guy a break being a veteran and everything.What is the name of your state?

[annajosie]

as far as I know, you can't touch a government pension. That is considered exempt money. The only way that money can be touched is by the IRS, child support or perhaps a government student loan.

As far as I can see, there is really nothing you can do about this situation.

[CC53]

Originally Posted by annajosie

as far as I know, you can't touch a government pension. That is considered exempt money. The only way that money can be touched is by the IRS, child support or perhaps a government student loan.

As far as I can see, there is really nothing you can do about this situation.

He's 45, in good physical condition, and doesn't work. The court should force him to get a job to pay this debt.

[annajosie]

I agree that the guy should pay you the money. But the fact of the matter is, the court is not going to force him to get a job. He's obviously living very well on his military retirement pension. Even if you tried to take his personal belongings, you have to remember that each state has debtor exemptions that the debtor can assert.

This guy probably knows that if he does get a job, his creditors could then garnish part of his paycheck. He is a deadbeat and he's proving it. Unfortunately, as I stated before, there doesn't seem to be much you can do about getting your money.

Good luck to you.

[CC53]

Well, as a follow-up, 5 months later, the guy has now filed a complaint against me and my business with the state's AG office. It's for harrassment relating to my collection efforts.

This isn't right. I have a judgment and he owes me money, and now he's turning the tables on me.

[debtcollector`]

He is retired military.

Sieze his checking account on the first of the month and make him file his exemptions. Then seize all non-exempt property. Bring him in for a judgment debtors exam and put him under oath.

This is your money. Go get it.

DC

[ecmst12]

DC, did you even read the post? He has already done everything you suggested.

The military is vigilant about making ACTIVE DUTY members pay their debts. They don't have the same kind of control over retired service men. And do give the guy a tiny bit of credit - he probably worked very hard for 20-25 years in very dangerous conditions to earn that pension so he can live like a bum now. That doesn't excuse him trying to stiff you on your loan, but I think it excuses him from having to work if he doesn't want to.

You may have to be patient though. Judgements are good for a long time. Watch him. Eventually he's gonna want to buy something.

[debtcollector`]

Originally Posted by ecmst12

DC, did you even read the post? He has already done everything you suggested.

The military is vigilant about making ACTIVE DUTY members pay their debts. They don't have the same kind of control over retired service men. And do give the guy a tiny bit of credit - he probably worked very hard for 20-25 years in very dangerous conditions to earn that pension so he can live like a bum now. That doesn't excuse him trying to stiff you on your loan, but I think it excuses him from having to work if he doesn't want to.

You may have to be patient though. Judgements are good for a long time. Watch him. Eventually he's gonna want to buy something.

I read it. The OP is going to have to get creative. There is always a way. He obviously doesn't like being contacted -- that would indicate that it is time to start pushing buttons. Instead of spending $500 on an investigator, put a 6 foot billboard in the back of a truck and park it in front of his house. A collection agency can't stand up and say that Joe Snuffy doesn't pay his bills -- but OC can (subject to the limits set by state law and truth).

Push the buttons.

DC

[CC53]

Originally Posted by debtcollector`

I read it. The OP is going to have to get creative. There is always a way. He obviously doesn't like being contacted -- that would indicate that it is time to start pushing buttons. Instead of spending $500 on an investigator, put a 6 foot billboard in the back of a truck and park it in front of his house. A collection agency can't stand up and say that Joe Snuffy doesn't pay his bills -- but OC can (subject to the limits set by state law and truth).

Push the buttons.

DC

That sort of activity is what's got the state AG's office on my tail.

[CC53]

Originally Posted by ecmst12

DC, did you even read the post? He has already done everything you suggested.

The military is vigilant about making ACTIVE DUTY members pay their debts. They don't have the same kind of control over retired service men. And do give the guy a tiny bit of credit - he probably worked very hard for 20-25 years in very dangerous conditions to earn that pension so he can live like a bum now. That doesn't excuse him trying to stiff you on your loan, but I think it excuses him from having to work if he doesn't want to.

You may have to be patient though. Judgements are good for a long time. Watch him. Eventually he's gonna want to buy something.

I've been told my only hope is that he gets married, and she wants to buy a house.

[racer72]

Originally Posted by CC53

He's 45, in good physical condition, and doesn't work. The court should force him to get a job to pay this debt.

Slave and forced labor are a violation of our Constitution.

[No Gravy]

Originally Posted by CC53

I've been told my only hope is that he gets married, and she wants to buy a house.

When he returned the car after 60 days, was it in the same condition as when he bought it? Is it in resell-able condition? I could see coming unglued over losing $12k if you didn't have possession of the vehicle or it can't be resold, but at 60 days, I'd consider it an unwind/buy back, take the loss as a tax write-off and put your energies towards something more productive.

From your description of him (star athlete, honor student), it sounds more like a personal grudge than a business decision that's fueling this. Consider it a rental, where you got $3k a month.