Q: I obtained a loan for 1,000 in Dec 2019 and unfortunately defaulted. With added I retest and fees balances went to almot
6,000. They offered a settlement of around 1500. I was able to send in $550 but was unable to settle as soon as they wanted. I continued to stay in contact but they voided the settlement. I am in NC but the loan originator is out of state. My question is will they automatically garnish my wages or will this go before a judge and I can try to settle another way if they bring judgement against me?
A: More details are needed. Was this an internet "payday loan"? if so, they are unlikely to sue. If this was a local finance company or a bank, they might sue or they might not. We do not have wage garnishment in North Carolina. If this is an out of state lender they may sue you in that state and be able to garnish, but they have to sue you first. Specifically I see a lot of Virginia loans from the payday lenders up there or the finance companies if you went to an office up there, suing and garnishing. It all depends on how you got the loan.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.