Walk It Through: Behind On Everything
A payday loan, an old card debt, the car, and the storage unit.
Short before payday, a worker takes a payday loan, then wants to renew it a fourth time.
Two things a person in this spot might do. Picking one shows what the law says about it.
One bad year. Bankruptcy, the federal debt collection rules, deficiency after a car sale and wage garnishment are not worked through here.
A practice walkthrough, not a prediction of how any real one will go. Legal information, not legal advice.
Words this turns on
Terms with a legal meaning that is narrower than the everyday one. Each links to the definition and the authority behind it.
- Breach of the peaceWhat a creditor repossessing without court must avoid: it may take collateral only without entering a dwelling and without force or other breach of the peace.
- Operator's lienA storage operator's lien on what is stored, enforced by a sale only after sixty days of continuous default and a notice giving at least ten days to pay.
- Acknowledgment of a debtA written, signed promise to pay that restarts the time limit on a debt. Any payment of principal or interest counts as one.
- Certificate of titleThe document without which a person who acquires a vehicle acquires no right, title or interest in it. A new owner who presents it for transfer more than thirty days after the sale pays a $20 penalty.
- Payday loanA short term loan secured by the borrower's check, limited to $1,000 in principal per borrower and no more than 25% of gross monthly income, renewable no more than three consecutive times.