Can you be arrested for unpaid payday loans?

Asked 11/2/2009 under Bankruptcy | 738 View(s) | More Legal Topics

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Bankruptcy Law Answers

Not generally, no; people are not arrested for unpaid debts. One narrow exception: IF you never intended to repay the loans at the time you took them out, so that taking them out was fraudulent, and the lender knows or believes they know that; and on top of that, there is evidence that you did not intend to repay the loans ever, in that one situation, you might be subject to criminal charges or arrest. However, as long as you did not commit fraud and intended to repay the loans, then even if circumstances became such that you could not, you are ok.

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