How can I avoid being sued if I am unable to pay my payday loans? 10 Answers as of September 09, 2012

I get a phone call telling me that I have several allegations against me and that I will get serve if I do not pay. I can make small payments like $25.00 for each payday loan, but I cannot pay like $300.00 a month. I only get social security.

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Dennis P. Mikko Attorney at Law | Dennis P. Mikko
If you are not paying the creditor has various options including suing you to collect on the loan. Making small payments would not prevent a suit from being filed.
Answer Applies to: Michigan
Replied: 9/9/2012
Law Office of D.L. Drain, P.A.
Law Office of D.L. Drain, P.A. | Diane L. Drain
Social Security income is protected. That means under federal law (42 USC 407(a)) that no creditor can take the money. The creditor can call, write or sue, but they cannot take the money. Unfortunately, the creditor may harass you by calling multiple times a day. Check out for limits on debt collectors. Those limits do not control the original creditors. So, if the caller is the original pay day loan company they may call as often as they like. Depending on your circumstances you might want to talk to a community volunteer legal service. I don't know where you live, but your local attorney organization might have a lead. You can also look at bankruptcy. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answer Applies to: Arizona
Replied: 9/7/2012
Law Office of Bijal Jani | Bijal Jani
Your best bet is to negotiate a settlement with the collection company. Submit hardship letters and proofs of what you can actually afford to pay, so they will be more inclined to settle with you on an affordable payment plan.
Answer Applies to: New York
Replied: 9/7/2012
Harris, Yug & Ohlinger
Harris, Yug & Ohlinger | Roberta Ohlinger-Johnson
In Nevada, you would probably be judgment proof since you only receive social security. Judgment proof means that a judgment creditor such as your pay day loan people cannot collect on a judgment. You may want to discuss that with your local legal aid people. Good luck.
Answer Applies to: Nevada
Replied: 9/7/2012
Alan Smith | Alan Smith
1. Bankruptcy. Initial consultations are usually free. 2. Speak with a lawyer who does debt consolidation or debt settlement to see if they can negotiate for you. Initial consultations in this area are generally free. 3. Very often, debt collectors behave in ways that violate federal and state law. Find someone in your area who does Fair Debt Collection Practices Act suits, and see if the collectors have violated any laws. Again, initial consultations are usually free, and an attorney in either of the other practice areas should be able to connect you with someone who does FDCPA work.
Answer Applies to: Florida
Replied: 9/7/2012
    Law Office of Stuart M. Nachbar, P.C.
    Law Office of Stuart M. Nachbar, P.C. | Stuart M. Nachbar
    Try to set up a monthly payment schedule. If that does not work, then you may want to speak to a bankruptcy attorney and see if you qualify. Your income from social security is safe from them, but it may be a good way to go. Many attorneys who practice in this field, such as myself, offer a free consult.
    Answer Applies to: New Jersey
    Replied: 9/7/2012
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You can file bankruptcy or you can wait until they serve you and fight it in state court.
    Answer Applies to: New York
    Replied: 9/7/2012
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Payday loan companies are very aggressive so you can anticipate you will be taken to court. Get an attorney and be ready.
    Answer Applies to: Michigan
    Replied: 9/7/2012
    Victor Varga | Victor Varga
    If your only income is social security, and you have no valuable assets, then you are pretty much judgment proof anyway (they would be unable to collect from you). Your social security income is too low for a garnishment, so the only other option for them would be to place a lien on any property that you own that is worth something, and force a sale. Try to work out a payment plan, but if they refuse, there's not much that you can do, but there isn't much that they can do either. They can sue you and obtain a judgment, but how will they collect if you have nothing.
    Answer Applies to: Maryland
    Replied: 9/7/2012
    First, call the loan company, explain your circumstances and your willingness to pay. Then ask for some consideration, such as waiver of interest. Second, if you are sued, do the above with the collection attorney. They are usually fairly grounded in reality. Third, if a judgment is entered against you, remember that social security is not attachable in Michigan. Unless you have other assets, they will have a difficult time collecting.
    Answer Applies to: Michigan
    Replied: 9/7/2012
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