Payday Loan Jail: Can It Really Happen?
One of the biggest fears that a person have in their heart after taking a payday loan is that they would have to go to jail if they fail to make the payment. So the question arises can anyone be put behind the bars if the loan amount is not cleared on time. This is certainly a very good question and those people who are hooked up with this financial aid program should know that under no circumstances would you have to go to jail; maybe your salary can be garnished and nothing more would happen if you fail to make the payment on time. You can calm down your fears and need not have to suffer from the nightmare of put behind the bars anymore.
 When an individual takes out the payday loans, s/he are legally bounded by the agreement that they have to pay the borrowed sum as well as the additional interest levied on it within a certain time period. If under any circumstance you are unable to make the repayment, then you can be hold liable for a breach of contract. Although no criminal charges can be charged against the borrower but the lender can file a civil suit against them. It is the right of the lending agency that the sum that they have disbursed has to be paid back but under no circumstance can a person can go to jail if they deny to payback the loan amount. 
When the borrower takes out the payday loans, the lender keeps a check in the borrower’s file so that in the future if the payment is due and money is not paid, then the lender has the right to access the individual’s account and take out the sum. The person who has taken the loan cannot be prosecuted by the law nor any kind of criminal charges be levied against them. According to the laws, a person cannot be thrown into jail if the loan documents are breached. The lender can file a civil lawsuit and it would take place in small claim courts where the presiding judge can order the person to pay back the amount in full in addition to the interest rate and other court costs; if applicable. At that point of time, the person who has taken the payday loan can refuse to make the payment and the court decision is in the favor of lender, then garnishment of the salary would take place and the person would not be faced with any other charges that can make them go to jail.
The individual cannot go to jail for not paying the payday loans, but the lender has that much power in their hands that they can sell the assets or any other property of the borrower if there is no salary or wages to be garnished. If you don’t want your paycheck to be garnished, then you can choose for a repayment plan called Hardship Repayment Plan in which you pay back the amount in monthly installments over a certain time period. The amount that you have borrowed along with the interest rate is split into payments not more than 4 and it has to be paid back in the coming 4 months. So, next time you get a call from your lender who says that you can go to jail for not paying the payday loan, you need not get nervous and afraid because now you know how to answer this question to your lender and act according to the situation.
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