I Took Out a Loan I Can’t Pay to Consolidate a Loan. – David

“Dear Steve,

I took out a loan to consoladate other loan that i had out . Right after i took out the loan which was for 3000 dollars i lost my job a wasn’t able to pay them back. I got so depressed and scared because this was the first time i have ever been in this kind of debt. So i didn’t call or come by the loan company to let them know what was going on. I’m just now finding a steady job in 2009,but i took out the loan in 2008. I don’t even have money to my cost cost or get a lawyer. this is really scary.

What will most likely happen to me at my case hearing thursday? Will i be garnish? Will i go to jail? Can I set up a payment plan.


Dear David,

You are not going to jail. No need to wear clean underwear for your court visit. There will be no strip search.

I certainly understand the feelings of being depressed and scared. it is common and normal to feel that way.

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I am not a lawyer and can’t give you any legal advice. But I can offer what I have observed over the years.

It sounds like this hearing Thursday is the result of you being sued and invited for a chat at the courthouse. It is what it is.

I think that you should go to the hearing armed with a comprehensive list of what your income and expenses are so you can share how much you can REALLY afford to pay each month towards this debt.

I suspect that will will happen is that the judge will look at the facts and rule in favor of the lender. The facts are that you borrowed money, signed a promise to repay, were unable to honor that promise, and now the agreement between you and the creditor will need to be resolved according to the terms of the agreement, which was written to favor the lender. You will probably lose, but this does not make you a loser. It’s just a matter of law.

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But, if asked, tell the judge what you can afford to pay towards this debt on a monthly basis. Let’s see if the judge can provide a suggestion that the lender accept that payment. I’ve seen it happen before.

Before you start worrying about a wage garnishment, let’s get through the hearing first. Let me know what happens.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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