I live in a house with 3 other guys, one of whom owns the house. When times were good he ran a business and somehow managed to borrow $500,000 with no security. The guy is 28 years old. He's an absolute moron, although I guess he managed to have a few good years with his business. If anyone wants an example of irresponsible lending, this guy is it. I wouldn't lend him a ball-point pen.

Anyway, when I decided to move in here, I had no idea and he gave no indication that he was in dire financial straits. I signed a contract and in order to negotiate lower rent, I paid a few months rent in advance. I've paid through December. The other two guys have paid through April.

So since I moved in a few months back, the wheels have come off. This guy is getting repo men and debt collectors and Sheriff's department people coming by all the time. He hides in the basement and tells us not to answer the door. He filed for Chapter 7 a little while back and his motorcycles and car disappeared. Big "FINAL NOTICE" utility bills and credit card statements are showing up. And then I find out he has some criminal trespass charges and potential fraud charges.

So last night he tells me "I just bought a plane ticket to Australia. Sorry man, you can stay here until the lights go out or until the sheriff evicts you." I think he's leaving today or tomorrow.

So any legitimate legal action is going to be basically useless since 1. he's gone and 2. I'm sure I'm in line behind a lot of other creditors for a chunk of his assets.

Now, my first inclination is to loot this house to the baseboards. He's got some nice A/V equipment, furniture, etc. Does anyone know the consequences if I do that? I don't want to get in trouble with the bankruptcy court or anything, but a little "self-help" would sure make me feel better.

I also thought about taking his passport and holding it hostage until he pays up.

I think there is a slim chance I could prevail on him to give me some of the A/V equipment, but would that still subject me to some consequence from the bankruptcy court?

Finally, should I call the police and tell him that he's absconding? Part of me feels bad for him and thinks that his creditors had it coming for lending to a complete idiot. But on the other hand...

This is just an absolute mess and I'm so irritated. If nothing else good comes of it, I've see what a financial melt-down looks like up close and personal and I thank God that I'm a FW'er who lives within my means.

Any thoughts or ideas are greatly appreciated.

Why is there such a slim chance he'd give you stuff to make up what he owes you if he's running off to Australia anyway?

He can't be too much of a moron if he got you and two other suckers to pay a bunch of rent up front.

yeah, have the other guys loot him.

I'd say, ask him for the AV equipment in exchange for your debt. He's not going to care either way and since he's not in bankruptcy yet, it is up to him how he wants to pay off his creditors.

Also, I think you'll be living rent free for a couple of months.

illmitch said:Part of me feels bad for him and thinks that his creditors had it coming for lending to a complete idiot. But on the other hand...
But on the other hand he's a douche.
illmitch said:So last night he tells me "I just bought a plane ticket to Australia. Sorry man, you can stay here until the lights go out or until the sheriff evicts you."
Also, as you mentioned, this guy's a moron. Going to Australia will not make his criminal charges disappear, and he can easily be extradited. His trip is just going to cost his creditors and the police more money, not keep the law from him. So the point is he's going to get what he deserves eventually, if his case is important enough for the involved parties.

I would hide his passport (don't hold it hostage, don't tell him you have it) to buy some time and put in an anonymous tip to the local police that he is trying to leave the country. Don't cause any physical damage to the premises, as your predicament is not his creditors' fault (other than perhaps lending to this guy) and you may be able to end up in a better position with "cash for keys". As for his personal property (furniture, AV equipment, etc.), I think the answer partly depends on whether it has been paid for or is one of his many unpaid debts. In the former case, claim it's yours; in the latter case, don't touch it with a 10-foot pole.

The police won't do anything. This is a civil matter.

I wouldn't hold on to the guy's passport.

YOU can't get in trouble with the BK court, since the guy is bailing, I seriously doubt he's filing for BK. Get it? I don't know why people just figure that BK's automatically happen or something. If he leaves the country then no BK. Think about it guys.

I'd give it a good possibility that you'll live rent free after december for a good while. What are you getting upset for?
Going to Australia will not make his criminal charges disappear

What criminal charges were those again?

catanpirate said:I'm not entirely sure about what is within your rights to do. It seems that he owes you at least 1 month rent. You're as entitled as any other creditor, in my mind, maybe more so.
What's the point of arguing about 1 month rent when you'll be living rent free for a couple of months.

catanpirate said:I'm not entirely sure about what is within your rights to do. It seems that he owes you at least 1 month rent. You're as entitled as any other creditor, in my mind, maybe more so.

that may be the case, but he should not be making that decision himself. As others have said, he will most likely be able to stay past December, which will make him even, so I would follow other's advise and do nothing at this time.

Tell him to stay away from the jellyfish in Australia when he's diving...they're tiny, and they reap massive pain.

Also, some years ago I was in a relatively similar situation. I was renting in a house whose owner defaulted on his payments and the bank took ownership of the house. Initially they wanted to kick us out immediately but we went in front of a judge who basically asked us how much longer we wanted to stay. We asked for 6 months and it was approved - we didn't pay any rent on it.