Military Debt

I understand you are having problems in paying that amount, but I will highly recommend paying it on your own without using any professional help. If there is a possibility, borrow from someone close to you. Your credit scores will go higher after it's paid by you in comparison to using credit counseling. You are only 17. You have the full life in front of you. Besides, you are joining the military. Be self-dependent. (No pun intended)

You can do it if you want. :)

4 elements must be present for a contract to be enforceable; one of those elements is "capacity to enter into a binding contract." A minor does not have the capacity to contract.

Since you were a minor when you took out the debt, you have the option to avoid the contract when you become of legal age. To avoid the contract you would have to make your intentions clear to your creditor, by saying something like: "At the time I executed the contract I was a minor and did not have the capacity to enter into a binding agreement. I hereby disaffirm my agreement." And you would need to make sure they receive your disaffirm-ment, so you should send it certified.

In essence, you are taking back your promise, which you are entitled to do. BUT making a payment after you are 18 can ratify the contract, which would then make it enforceable, even though you previously were a minor.

DebtCruncher

Did I understand this right, a minor can ignore any debts before s/he reaches the legal age? Since there is no capacity to contract. Will the company forgive the debts on this ground even if it reaches the maximum credit limit?

Ignoring it would be a bad thing... a contract executed by a minor is not "void" but is considered "voidable". A voidable contract contract is presumed to be enforceable but for the presence of some factor ???????? here, the contractual capacity of one of the parties ???????? which permits a party lacking capacity to avoid his or her otherwise valid contractual obligations.

A minor needs to "disaffirm" their obligations in order to avoid the contract, and it must be done before they turn 18 or very soon thereafter. Time, of itself, will ratify the debt and make it valid; as will making a payment.

[quote]MINORITY: DISAFFIRMANCE

Disaffirmance: In order for a minor to avoid a contract, he or she need only manifest an intention not to be bound by it.

This intent to avoid, or ???????disaffirm,??????? the contract may be manifested by words or actions.

Generally speaking, a minor may disaffirm a contract at any time during minority or for a reasonable time after the minor comes of age.

When a minor disaffirms a contract, all property that he or she has transferred as consideration can be recovered ???????? even if it was subsequently transferred to a third party.

Disaffirmance must be timely.

The contract must be disaffirmed in its entirety.

Only the minor has the option of disaffirming his or her contractual obligations; any adult parties to the contract remain bound by it unless released by the minor????????s disaffirmance.[/quote]

To answer the second part of the question, the company would not want to forgive the debts, but they would not win if they tried to sue over it.

This is why most finance companies say you need to be 18 in order to take out a loan or credit card... because a minor would be able to get out of paying them.

I see... I just have a plan.. of course it's a bad one.. But I will say.. It's a hypothetical case. Maybe I can ask my son to sign a credit and before he reaches 18, he does all the formalities as you said above. I get what I wanted from company's expenses. Did I get through? And the company will not be a pain for me in the future?

Well if this is possible, the companies really shouldn't give credit to minors until they reach 18.

Most will not give credit to a minor. The above disaffirmance also cannot be used if a minor lies on a credit application. Meaning, if he's 17 but puts down 18 in order to get credit, then he can't use his minority as a defense.

Also, if an adult co-signs, then the adult would still be responsible for the debt even if a minor disaffirms it. My point being, this wouldn't work if you make him an authorized user on your account.

Go to google and type in "minor capacity binding contract". A bunch will come up.

Just my 2 cents, if my daughter some how got credit when she was 17 then I would hold her accountable for repayment of that debt. This teaches them that debt needs to be paid back.

I agree with Ashley. While not ethical, I just presented the legal side of it. I got a car loan, with my dad as a co-signer, when I was 17. If I wanted to be a real ****, I could have disaffirmed my loan and stuck my dad with the bill. But then he would have kicked my **** and threw me out of the house.

Adult term removed - Jason