Can I just walk away from the8 payday loans that I have?

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Can I just walk away from the8 payday loans that I have?

What are my options?

Asked on December 12, 2011 under Bankruptcy Law, Arkansas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you walk away from the loans, the lender(s) can sue you and obtain a judgment against you. Armed with that judgment, they can potentially garnish wages, put a lien on any real estate you own, levy on a bank account, and/or execute on personal property (e.g. force the sale of vehicles). Your credit rating will also be heavily damaged.

You may need to consider bankruptcy as an option, which will also damage your credit rating, but should also let you avoid most (possibly all) of your debts. Below is a link to an informative government website, though you should try to speak with a bankruptcy attorney to better understand this option and which type of bankruptcy (ch. 7 or ch. 13) is better for you.

Here is the link:http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you walk away from the loans, the lender(s) can sue you and obtain a judgment against you. Armed with that judgment, they can potentially garnish wages, put a lien on any real estate you own, levy on a bank account, and/or execute on personal property (e.g. force the sale of vehicles). Your credit rating will also be heavily damaged.

You may need to consider bankruptcy as an option, which will also damage your credit rating, but should also let you avoid most (possibly all) of your debts. Below is a link to an informative government website, though you should try to speak with a bankruptcy attorney to better understand this option and which type of bankruptcy (ch. 7 or ch. 13) is better for you.

Here is the link:http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx


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