CAN A PAYDAY

LENDER HAVE ME

JAILED FOR A NEW

JERSEY BAD CHECK?

TRAVIS J. RICHARDS SOUTH NEW JERSEY BANKRUPTCY ATTORNEY

Has a payday lender threatened to send you to jail for not repaying the loan?

Are you frightened about what will happen if you cannot come up with the

money to make the check good that the payday lender is holding? If so, you are

not alone. Payday lenders use “scare tactics” in order to pressure people to

repay the loan.

Unfortunately, they get away with these tactics in many cases. People who are

afraid of going to jail for a payday loan find a way to borrow money to make

these checks good so the payday lender will leave them alone. Payday lenders

prey on people’s fears of jail; however, they are lying to individuals.

What is a Payday Loan?

Payday lenders prey on people who are struggling to make ends meet and who

are living paycheck to paycheck. These include low-income and fixed-income

individuals such as senior citizens. Payday loans are a quick way to get money to

pay a utility bill or rent when the person does not have the money to keep the

lights on or get the landlord off their back until payday. These short-term loans

are used for unexpected expenses such as car repairs and by senior citizens to

buy groceries and medicine.

Unfortunately, payday loans come at a very high price. In many cases, the

interest rate charged for these loans are 10 to 15 times higher than the interest

rate on a personal loan or credit card. With such a high interest rate, individuals

who are already struggling to make ends meet are now forced to pay a huge fee

for borrowing a small amount of money for a very short period – in most cases,

a couple of weeks to a couple of months. For some people, paying off a payday

loan is impossible. When this occurs, the payday lenders resort to threats of jail

time to frighten the borrower to take drastic measures to find the money to pay

the debt.

Are Payday Loans Secured?

The debt owed to a payday loan company is considered an unsecured debt.

Some people confuse this type

of debt with a secured loan

because they provide the

lender with a postdated check;

however, the loan is not

secured.

In most cases, a payday lender

will require the borrower to

provide one of three types of

“security” to ensure the loan will be paid. This does not make the loan a secured

debt. It is only intended to make collecting the debt easier for the lender.

Require the borrower to provide a post-dated check in the amount of the

loan payoff;

Require the borrower to sign an agreement to allow the payday lender to

debit the payoff directly from the borrower’s bank account or debit regular

payments from the borrower’s bank account; or,

Require the borrower to sign a voluntary wage garnishment allowing the

borrower’s employer to deduct payments from his or her wages to pay the

payday lender.

Can I Go To Jail For A Payday Loan Check?

No, you will not go to jail for a payday loan check even though the payday

lender threatens to have you thrown

in jail for writing a bad check. If a

payday lender accepts a post-dated

check that the lender knows is not

good at the time it was issued, this

does not qualify as a bad check for

criminal prosecution. The lender is

accepting a check that the lender

knows is no good. A criminal

charge for a bad check is used

when the person issuing the check

knows that he or she does not have

the funds to cover the check but is

passing the check off as if it was good.

What Should I Do If I Cannot Pay A Payday Loan?

If you are being threatened with jail time by a payday lender for a bad check,

you need to contact our office immediately. Payday loan companies cannot

legally threaten this action in New Jersey. Furthermore, you may be able to

discharge these debts and other debts through a bankruptcy filing.

It is very easy to get into trouble with payday loans. Filing bankruptcy is often

the best solution to your financial problems when you do not have the money to

pay your debts after providing for your living expenses. We will discuss your

current financial situation to devise a debt solution that is affordable and in your

best interest.

Contact an Experienced Mount Holly Bankruptcy Attorney

Personal Approach, Professional Service, Affordable Payment Plans

The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy

law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt

consolidation, credit repair, tax liens, student loans and foreclosure. We

represent clients in Burlington County and throughout South Jersey.

Contact our office at 609-267-5297 to schedule your free consultation to

discuss bankruptcy and non-bankruptcy alternatives. You may also use our

convenient online contact form and one of our friendly, professional staff

members will contact you to answer your bankruptcy questions and/or schedule

a free consultation with Travis J. Richards.

About the Author

Travis J. Richards

Travis Richards is not your typical attorney. He understands the random curve balls life throws at honest, hard-working people. Growing up on farm in Southampton, New Jersey, money didn’t always come easy for many of his family, friends and neighbors. He saw that bad things often happen to good people. This background shaped his approach to the practice of law. Mr. Richards considers it a privilege to help clients from all walks of life recover from financial hardship. In doing so, he aims to provide every client with the same service he would provide a member of his own family. His mission is to get to know each client individually and provide the best legal advice possible for them to regain control of their lives.

“Over the past decade I have impacted the lives of hundreds of individuals and families in an extremely positive way,” he says. “Through bankruptcy I am able to show my clients a freedom that they thought impossible to achieve…My goal is not only wipe out the debt they have accumulated, but also help make sure they will never be in a situation to need my services again.” Mr Richards has helped hundreds of individuals eliminate debt, keep their property and return to financial stability. “Bankruptcy gives deserving individuals a second chance.”

Mr.Richards graduated with honors from Rutgers University, in New Brunswick, NJ where he majored in History. In 1999 he graduated, again with honors, from Rutgers School of Law, Camden, NJ. He was admitted to the New Jersey and Pennsylvania Bar in 1999, where he is licensed to practice law before the United States District Courts. Mr. Richards practices bankruptcy, mortgage loan modification work, debtor rights and credit card negotiations. He maintains memberships in the National Associate of Consumer Bankruptcy Attorneys, the Burlington County Bar Association, the New Jersey State Bar, the Pennsylvania State Bar, and the American Bankruptcy Institute

The Law Office of Travis J. Richards

141 High Street Mount Holly NJ 08060 Phone: 609 267-5297 Fax: 609 267-5295 Website: njbankruptcyinformation.com