I am unemployed and yesterday, had to close my bank account. I have an outstanding loan with cash call and I called to see what arrangements I could make to pay it, when I get a job. The woman on the phone told me I had to pay this month, in other words, beg, borrow or steal, because I do not have it. She told me to ask my friends, huh! She told me if I do not pay, I will have to suffer the consequences, does anybody know what consequences she is talking about? They cannot garnish my paycheck, right? I know they can put it on my credit report, what else? I am planning to try to pay it this month, but if I don't have a job or I just started a job, how will I pay?
2007-06-29 07:53:36 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
At this moment, if you truly own nothing, there isn't anything they can do right now, except sue you. However, if they sue you, you will not be able to get credit in the future, or for about seven years. Judgments are reported through the courts though and I think they last ten years.
If they get judgment against you, they, in most states, can seize anything you now or in the future own, though they must get an order to enforce in order to take an asset not explicitly secured in their existing loan contract.
You could declare bankruptcy, but from the view of your long term credit outlook, you are better off being delinquent and repaying as soon as possible. In many states, they will also be able to garnish future wages.
2007-06-29 08:12:42 · answer #1 · answered by OPM 7 · 0⤊ 0⤋
Well, what they can do, depending on state and local laws, is sue you and obtain a judgment and the granish wages. All of this takes time, I would say a good 60 days before you would see any type of legal action at all. I don't know how fast cash call works, they may turn it over to an attorney the first time you miss a payment, in that case it could be sooner.
At any rate you should be caught up before they start a lawsuit if you plan on getting a job soon.
Good Luck
2007-06-29 10:41:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Ultimately, they can sue you, and you will still owe the money, even after you get your next job.
The only way "out" is to declare bankruptcy, and the new laws make it much harder to have your debt erased. Even if you do manage this, your credit/future borrowing ability is pretty much ruined for the next several years.
The person you spoke with may have been rude, but her job is probably to indimidate you into paying up as soon as possible. Her threats, however, are very real and legal. It may be better to owe a few friends, for a while, than to have Cash Call report you as a bad debtor.
2007-06-29 08:05:04 · answer #3 · answered by Vince M 7 · 1⤊ 0⤋
It sounds like you dont care if your credit is destoryed so I wont address that part of it.
You dont owe your house, the bank does. You only own it in paper. You gave them a trust deed saying if I dont pay you this much the house is yours.
They will foreclose against you, normally this will take months. The last thing the bank wants to do is take over your house. If they do it will be sold to the highest bidder, normally at the court house.
Then you have 3 days to get out of the house, or a nice little police car will show up at your house and show you where the door is. They will charge you for trespassing.
Im sorry about your job but thats what will happen.
2007-06-29 08:07:51 · answer #4 · answered by financing_loans 6 · 0⤊ 1⤋
You would need gap insurance to cover the rest of the loan (the amount owed after the value of the car is paid off) Fire is not a good way to destroy a vehicle. Insurance companies will investigate the fire and find a reason not to cover it. They will find a way to blame the owner because most new vehicles do not catch on fire, and if they do, it would be due to a manufacturer issue.
2016-05-18 23:15:29 · answer #5 · answered by ? 3 · 0⤊ 0⤋
u can file for extensions and they may grant it if theyre nice. talking to the company and asking for a little extra time usually helps and theyre generally nice about it.
but they can foreclose on property that u have. i think they go after the item which you took the loan for.
if the loan was for tuition or something intagible theyre out of luck
however if your parents cosigned for the loan theyll go after your parents property and ask your parents for the money
worst case scenario file for bankruptcy it esentially clears ur debts but liquidates all your assets(things with you name on it)
2007-06-29 08:05:19 · answer #6 · answered by jcjunkact 4 · 0⤊ 0⤋