Question
my dad can't pay a loan will he go to jail!!!??? omg noo plz help?
ok so here is the story. my dad made twon loans one in speedy cash and the other one in cash advance america. ok. the fees are killing us! because of paying them (actully he has been paying the fees for like 3 month now!) 205$ is one fee and the other one is 152$ that is more than 300$. ok so tomorrow. he Must pay the fees (again) he gets his paycheck every 2 weeks. this is the first time he CAN'T pay his loans. like he always is able to pay. but work and no much hours is getting bad. so he is Not getting that much any more. ok, my questions are this: If he doesn't pay the 2 loans, will he go to jail? He just can't like we have a 400 dollar bill and..100 phone and 700 rent, food gas imagine. so ok. I know that when people are not able to pay the deposit the check to this bank account. and because he won't have any money in his account the check will bounce right? then what happens? will police come to the house and arrest him! omg I don't want that. I WILL pay is Not like he won't but not now. can they just report it in his credit and pay later like next year. when he receives this huge bonus from the company. Please help I am just worry. thank u so much. Only serious answers please! =D Best answer gets all the Points! ok sued like what. he can pay until Next year only.. like the company will always gives him like a hge bonus! so he can pay from there. yeah is Not like he won't pay He will. but until Next year. can they just put the money in collections and just wait until he can pay. my dad will pay people. thank you all who are answering. best answer will take all the points. btw new mommy congratulations!
5 months ago - 3 answers
Best Answer
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no. he won't go to jail after missing his payments. It will however affect his credit score. Not paying at least your minimum payments every month can significantly hurt your credit. I am going through a similar situation right now, rest assured, a lot of people are right now! It's not just your family! Keep your head up, something will give eventually and you will be able to get caught back up. Good Luck! p.s. he could get sued if he keeps the debt going for a long time and doesn't pay back what he owes. For example, you owe me $10,000 and you stop making payments on that, I could turn you in and it could go to collections. If you don't then pay it, I could sue you for the amount you owe plus penalties. Usually this doesn't happen right away. Especially if your father communicates with whoever he owes this money too. And if he is at least attempting to make payments. Hope that clears it up for ya!
5 months ago
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Other Answers
No, people do not go to jail for not paying their debts. It will hurt your dad's credit obviously, and he could be sued later on down the road if he doesn't pay, but no jail. Edit: Hmm, hard to say how long it would take for him to be sued, if it happens. Right now, this is a small debt, and people are rarely sued for debts under $1000 (though it does happen occasionally). The thing is, the interest charges will continue to pile up and the debt will get larger and larger, so it could end up being much higher than it is now. If this were a credit card debt, I would say that it would take *at least* 6 months for him to be sued (and probably a lot longer). But with payday loans, I'm not sure if that works the same way, sorry. Edit again: Yes, more than likely, this debt will go into collections for quite a while before your dad would ever be sued. As I said above, for a credit card, 6 months is the shortest possible time before this would happen, and usually it is much longer than that. If your dad pays by early next year, I think it is pretty unlikely that he would be sued. I just mentioned it because even though it's not likely, it *is* possible.
by Prove It Or Lose It!- 5 months ago
No you can't go to jail for bad debts. The problem is that he took out payday loans which have a very high interest rate and the companies are acting like loan sharks. Someone should never take out that type of loan unless they are 100% sure they can pay the loan back fully the following payday. Click on your state on the bottom of the following link to determine the laws governing payday loans for your state. The important thing to look for is Rollovers Permitted for your state. www ... About 80% of the states allow 2 or less rollovers but a few allow unlimited rollovers. What the payday loan company was doing with your fathers payday loan was charging your father monthly for the interest and fees and then rolling over the principle and then adding interest and fees for the new period again. If your state has 0 Rollovers Permitted, that is illegal or in your fathers case, they can't do it any more if your state allows 3 or less rollovers. What should happen if your state allowed 0 rollovers is that your father would need to pay interest, fees, and principle and then reapply for a new payday loan if he still needed one. If he couldn't afford to pay all that back, the payday loan company would then need to cap future interest rates at the usury rate orf some other low interest rate defined by the state. If the states didn't limit the number of rollovers allowed, a $500 payday loan could become a $1,500 debt in 6 months and over $5,000 in 1 year. Not every state limits the number of rollovers allowed. However, it appears that payday loan companies are probably ignoring state laws and constantly rolling over the loan even though they are not permitted to roll them over. I'm not sure if your father has an automatic withdrawal from his bank account for the payday loans. If that is the case, go to the bank and ask the bank to stop those withdrawals (insist upon that). If the bank will not stop the withdrawals, make sure your father does not put any money in that bank account or else it will be withdrawn by the payday loan companies. Then call the payday loan companies and tell them they are rolling over the loans illegally (if they are). Tell them you want the accounts to be frozen at their current value (no more fees and only a small amount of interest added) and a payment plan to be set up (get it in writing). If they won't do that, ignore them and wait and see if they will file a lawsuit. If they do, it is unlikely that they will get very much since they are likely breaking the law. Read the following article: caveatemptorblog ...
by Michael T- 5 months ago