Payday Loans

Can You Be Sent To Jail For Not Making The Debt Payments To A Payday Loan Company?

There are some harsh consequences that you may have to face for not making the debt payments to a payday loan company, such as wage garnishment, forced liquidation of some of the assets that you own, and other such things. But, none of the states in the US treat non-payment of payday loan debt as a criminal offence, which means your lenders can file a criminal lawsuit against you, which also means you cannot be sent to jail if you are unable to pay off the loans. Lenders have the right to sue you for the payments, but they can sue you only in a civil court, not in a criminal court. Following is a brief rundown on some of the different aspects associated with this issue.

Judgment In Civil Lawsuits

Here is no provision for jail imprisonment when the judgment comes as part of a civil lawsuit. In most of the cases, when a borrower is sued for not making the debt payments to a payday loan company, they first get a court summons informing him or her that he or she has been sued by a particular lender. When you get such a summons, you must file a response within thirty days from the date you receive the notice. If you do not respond within this time period, your lender will by default win the case. For example, if they had requested the court to issue an order of wage garnishment so that they could recover the debt, the request will be approved by the court without any objection. In fact, lenders often assume that the borrowers will never respond to such summons and that is the reason why they often win. In all such cases, where borrowers respond immediately and are ready to defend themselves, lenders find it very difficult to win the judgment in their favor. Therefore, filing an immediate response is very important. You must understand that the laws in such cases are usually in favor of the borrowers. But, you must appear for the court hearing and show your willingness to defend yourself in order to take advantage of the laws.

Proof Of Debt

When a lender files a lawsuit against you for not making the debt payments to a payday loan company and you receive a court notice in this regard, the first thing you should do is to file a motion with the court requesting them to ask the lender to provide the proof of debt. If the lender fails to prove that you legally owe the debts in question within thirty days after receiving a court notice, they will by default lose the case, which means they will lose the right to collect payments from you. In such cases, you can no longer be held liable to make the payments on those debt accounts. It is important to note that lawsuits are often filed by debt collection agencies, not by the lenders. These agencies often fail to gather necessary documents to prove that you really owe the debts. Therefore, if you are lucky enough, you may get rid of your payday debt problems even though the debts are legitimate ones. Another scenario is where the debt accounts are very old and the statute of limitations has already passed. If that is the case with you, you are not legally liable to pay those debts. You can simply state the facts in your response to court summons, attaching documents to prove that the statute of limitations has already passed.

Repayment Plan

When you are sued for not making the debt payments to a payday loan company and there is no way you can refuse to make the payments on legal grounds, you should simply provide proofs of the kind of financial hardship you are going through and request the court to allow you to make the repayment as per a new payment plan, which is more affordable to you based on your present financial condition. The court often accepts such proposals. This way, you still have a chance to avoid harsh consequences like wage garnishments and forced liquidation of assets.

Overall, you cannot be sent to jail for not making the debt payments to a payday loan company unless you borrowed the money as part of some fraudulent activities, such as by providing false financial or employment information.

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