What Happens If You Have Unpaid Payday Loans In Texas? 5 Important Points

Can you go to jail for unpaid payday loans

In Trouble For Unpaid Payday Loans?

In the state of Texas, are you able to go to jail for unpaid payday loans?

A recent article I read talked about whether or not you can be sued for not paying your payday loan.

This is a very common question in the state of Texas.

You have probably already asked yourself this question if you have ever had a problem with paying back a loan on time. I’ll talk about some interesting answers to that question.

State Laws for Unpaid Debt

You can be held in jail for unpaid debt. If the creditor has gone to court to get money from you, and you still haven’t paid, then you can be held in jail.

It really depends on the state where you live. Some states have very restrictive rules on how long you will be held in jail. Other states have no rules at all on this whatsoever.

The amount of time in jail varies. It depends on the creditor, and the state where you live. For an unpaid payday loan, the creditor may go to jail for up to six months, though it varies from state to state.

In some states, they may not even issue the loans in the first place if you cannot pay them back. You may have to appear in court, and your case may be sent to a bankruptcy court.

In some states, they may only issue citations. They may not issue you tickets. And you may not have to pay them at all. Many people think that this means their licenses will be suspended, but this is not necessarily the case.

Payday Loans and Legal Action

Most people who take out payday loans do end up having to pay these back.

Some people have been threatened with legal action if they don’t pay their loans back on time. Others have received death threats.

In most cases, if you have been threatened, you are probably not going to jail for not paying back this loan.

Unpaid State Tax Bill VS. Unpaid Payday Loans

Many people worry about people getting jail time for not paying their bills. But other states, including Texas, actually have specific laws about this.

They have taken the position that people who take out money under false pretenses should pay back those loans, even if they are ultimately unable to pay them back. In many cases, these bills are a great burden on already struggling families.

There is a big difference between an unpaid state tax bill and an unpaid payday loan. If you owed one, you probably could have used a tax lien. And in some states, the attorney general can take your license away for defaulting on a payment.

If you cannot pay an unpaid state tax bill, you should seek immediate legal relief. An unpaid utility bill, rent, or mortgage payment is not quite as serious of an infraction as a payday loan, although it is still a burden that should be cleared.

What is an unpaid loan?

The only time a loan can go unpaid is when the borrower does not appear at all.

Even then, there are several options available to you. You can report the lender to the IRS, which will issue a tax lien against your home. You can file for bankruptcy, and the court can order collectors to take your property.

All in all, there are very few reasons to go unpaid when you are in need of extra cash.

But still, can you go to jail for unpaid payday loans?

Here are some possible ways that your assets might be taken by the bank or the government:

unpaid payday loansFirst, you may have heard of asset protection and how it can protect your assets in the event of a divorce or other legal proceeding.

This type of planning can involve arranging your paycheck to give you enough money to survive until your next check. Some people go this route with their payday loans, but some do not.

But no matter what route you take, planning to go through a difficult financial time without extra income can only result in problems down the road.

Finally, some people think that they cannot be prosecuted for unpaid payday loans, since they never took the money out of their bank account.

The truth is that just because someone does not physically possess the money does not mean they did not commit an illegal act. Any time someone takes an illegal action, the government has every right to go after their assets.

The question is can you go to jail for unpaid payday loans? Only you and the bank can decide.

Comments are closed.

Post Navigation