Can I default on Internet payday loan without wage garnishments & prosecution?

M

Michael Avalos

New member
I live in NM & I am on the verge of total financial collapse with payday loans. I am on the verge of being homeless. I read on this forum an previous answer from Badonkadonk & the answer was to close my bank account & to take control of my whole check. I think I cannot be prosecuted in NM. What will happen if I do close my checking account, thus not allowing ACH payments & opening up another account. What if I choose to default completely? Will it be reported to the credit bureaus? Will I be forced to pay no matter what? I need some good answers please. I am desperate.
 
I believe you would be committing fraud if you did that. They will further ruin your score, and WILL sue and win. The only way I can see that you can get out from under this is to declare bankruptcy. Granted you will have to see a lawyer about this, to see if you qualify for this, but this might be the only option I see. Oh and this will be reported to the credit bureaus (although you probably trashed your score with payday loans) and it will hurt for a while. Next time, it would be best not to play with money you don't have and don't buy stuff you can't afford.
 
Creditors have no direct power to garnish wages. They have to serve you a summons and take you to court and win a judgment first.
The main issue here is that this firm has your bank routing and checking account #'s and they're going to try to debit what is owed regardless of whether the money is there or not. If it's not, you'll have another problem of negative bank balances to deal with. Close the checking account and pay back when you can.
 
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