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Question
Hi, my mom owes approx. 2500 from 6 different pay day loans in the state of wisconsin.She went to a consolidation company and set up a payment plan. After 2 months she was unable to continue payments. I have tried to find out on the web if she could go to jail, or if its considered worthless checks. I think I read something about having a judgement put on her, is this true and would she have to go to court.Also what would the length of time of the judgement be on your credit? The bottom line what could happen to her.
In most cases you cannot go to jail for bouncing a check on a payday loan. This is because it is a civil matter since the company uses checks as a promissory note. Besides no prosecutor wants to be their collection agency. They have more important cases to try.
They could get a judgement and potentially garnishee her paycheck and attach bank accounts. However, if she is in a hardship and they sue her she can take a copy of her budget to court with her and possibly set up a trusteeship where she can turn over her bills and a part of her check to make payment to creditors through the courts. This would stop any garnishments.
Any arrangements she makes needs to be realistic. You cannot pay what you don't have.
A judgement can remain on the credit for up to 10 years.
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.
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