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Can I have a judgement placed against me for unpaid payday loans over a year old in the state of CALIFORNIA?

Lancaster, CA |

about a year ago I took out a pay day loan for 300$ to Check N Go. Unfortunately i could not pay the loan off due to financial hardship. I am currently seeking consultation about filing chapter 7 bankruptcy, but until that happens, i have continued to receive calls about papers needing to be served to me regarding the unpaid loan. Can i get a judgement based off this? Are these claims true in the state of CA?

Attorney Answers 4

  1. Yes, once served with a summons and complaint the creditor can get a judgment against you. I assume the terms of the Pay Day loan were in writing. In California the statute of limitations on such a claim is four years.

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for general information only. They are not legal advice. Answers must not be relied upon. Legal advice must be based on the interplay between specific exact facts and the law. This forum does not allow for the discussion of that interplay. My answer to any specific question would likely be different if that interplay were explored during an attorney-client relationship. I provide legal advice during the course of an attorney-client relationship only. The exchange of information through this forum does not establish such a relationship. That relationship is established only by personal and direct consultation with me followed by the execution of a written attorney-client agreement signed by each of us. The communications on this website are not privileged or confidential and I assume no duty to anyone by my participation on Avvo or because I have answered or commented on a question. All legal proceedings involve deadlines and time limiting statutes. So that legal rights are not lost for failure to timely take appropriate action and because I do not provide legal advice in answer to any question, if you are an interested party you should promptly and personally consult with an attorney for legal advice. Also, see Avvo's terms and conditions of use, specifically item 9, incorporated by this reference

  2. Yes, they can seek and obtain a judgment against you for an unpaid debt. Once you file your Ch 7, if you choose to do so, the creditor can no longer seek the judgment or take any other actions to collect the debt. However, if your only debt is $300 or so to Check N Go, I don't know that spending $306 to file a bankruptcy, plus attorney fees, is necessarily the most prudent choice.

    Eric Ridley can be reached by phone: (805) 244-5291, by email:, or at This answer is intended to provide general information only. It does not create an Attorney-Client relationship, nor should it be construed as legal advice or an opinion on specific situations. Eric D. Ridley is licensed to practice law in California. The Law Offices of Eric Ridley emphasizes Estate Planning, Bankruptcy and Consumer Law & Litigation.

  3. While I cannot give you legal advice in this forum, until the bankruptcy is filed the creditor is free to pursue a judgment. If you signed an agreement, which is generally the case, the statute of limitations is 4 years. If so, there is no defense simply because 1 year has passed.


  4. Yes, it's correct that the creditor (Check N Go) can sue you for this debt. However the cost to file a "limited jurisdiction" lawsuit in Los Angeles County is $370, so they are not likely to file a lawsuit until interest and penalties have made the debt much larger. It's more likely that you'll be contacted many more times by collection agents before any suit is filed.

    You may be able to settle the debt if you were able to pay a small amount each month ($20 or $25), but only offer what you can realistically pay without sacrificing necessities. You might also check to see if there is a legal aid office in your area that could provide some guidance.

    This answer is for information purposes only based on limited information, and is not legal advice. No attorney-client relationship is intended or formed by the posting of this answer.

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