I took out a payday loan about 6 years ago. I fell on hard times and was unable to pay back therefore I was advised by my bank to close my bank account and open a new account. I attempted to pay back through a debt collection company but the payments became to much and I couldn't continue. Now I'm being contacted by a collection company or law firm that their going to appear at my place of employment with legal charges. Is this possible? Should I be concerned. The amount owed is $800.
1 Answer from Attorneys
A collection agency cannot threaten any type of criminal charges against you to pay the debt. They could, if they don't know your home address, file a civil lawsuit against you and have the papers served to you at work. Other than that, they cannot come to your work and threaten you or demand payment from you. I would not recommend that you file for bankruptcy if this is your only debt, but if you are having difficulty paying bills you may want to consult a bankruptcy attorney.