Can you file bankruptcy on pay day loans?

Answer 1

Here's the thing - Loans made within a short period (say a year or two, but certainly 90 days) of Bankruptcy generally aren't included, as they are considered taken in anticipation of BK, so you won't get relief. Payday loans are written in such a way that they actually renew every 30 days or so...and are entirely new loans...getting entirely new fee's etc. This is one of the main ways they get much higher than stated interest rates and these things can grow so large, so fast. Hence, they also really can't be discharged in BK.

However, a number of Judges/Courts, because of the abusive nature of Payday loans (and bad press...actions to control them), are simply looking through that and allowing them based on the "original" date that started the daisy chain of loans. It just sort of depends on your presentation....and the specific court your in. Even where a judge does allow it...the loan company can and will protest...and they do have a good firm legal case....but hopefully this can at least be resolved favorably for you.

Answer 2

You have to write them a check to get the loan. If your check doesn't clear they can get you for passing a bad check. Probably not a good idea to put them on your bankruptcy. It's not like a regular loan company. You have no choice of what to include in your BK filing...everything in your finances MUST be included...debts and assets. They are all then given certain priorities and some may be excluded for relief...BY THE COURT...you do not make that decision. Most all debts incurreds a short while before Bk are exluded from being relieved...the thought being they were made in antici[ation of BK...and that would be abusive. Pay dfay type loans are made in such a way they actually renew every 30 days or so...that is how they get to charge so much fees (instead of interest) and why they are considered such bad ideas...and abusive themselves. Becuaseof this, if presented well, and especially if the loan originates a while back and continued renewing...many Judges try to find a way to include them for discharge.

Answer 3

For each bankruptcy case, there is a judge who resolves to be presiding over the case. The judge will be one who settles on if the company case will be discharged or dismissed. Bankruptcy is not carry out like any usual law cases. If the company which are filing, they do not need to be in attendance in front of the judge. The judge will reconsider all the documents and evidences accessible to him/her by the trustee and grant or reject you the bankruptcy discharge. The bankruptcy judge makes the last determination on your bankruptcy case even though the bankruptcy trustee can make proposal to the judge.

Answer 4

Probably not. In fact, if you're in Chapter 13 it might get your case dismissed as most new debt must be approved by the trustee; they certainly won't approve payday loans.

Your best bet may be to dismiss the case voluntarily, then re-file with the loan included.

Answer 5

Yes, such loans are considered to be unsecured creditors.

BK is always done under FEDERAL Laws, in a Federal Bankruptcy Court. Basically State makes little difference. (Yes the BK Courts operating in certain areas have certain special exemptions and such, minor in the overall, generally intended to make things adhere to the local laws and customs better). Federal Bankruptcy Courts handle cases in their jurisdiction, which is determined without any real regard to State lines or such. There are many, many Districts, made according to what the Feds feel are their needs.

In a personal bankruptcy, YOU go bankrupt. Not a debt, not a loan...not a car...not a house or a this or that. ALL of your assets, of all types, MUST be disclosed and reported in BK, and ALL of your liabilities/debts must be too. No exceptions, no picking and choosing. They are all, always involved in some way.

BK may stall off a foreclosure for a short while, but it is entirely different than one, and will NOT prevent the ultimate loss for long. Which is to say, in simple terms, you either pay for your house AND all the liens against it, or you lose it...there is no magic or legal action that will have a different outcome.

After filing and disclosing everything, the court will then order each of them in priorities according to the laws. Some things may be exempt from use or discharge (like your personal furniture and retirement accounts are exempt and child support and most court imposed fines or penalties cannot be discharged) - and the rest may be used. With one to pay the other. AGAIN - THEY ARE ALL INCLUDED AND LISTED - how or if the BK will effect them is decided by the Court & Laws. (All possible creditors are contacted and asked to say what they are owed....you may be required to even take advertisments out to make sure everyone is notified). Not including everything is lieing to the Court and probably won't have the effect you want anyway.

And think about it...it's on your credit report, ot its on a credit application you made (and that creditor wants to know what happend to it...unless you lied on the application = criminal fraud). Any deal you've done for several years is open to scruitiny and review. The court can reverse them, take them out of the BK, or even have them prosecuted as trying to defraud your creditors. (So, no you can't sell your boat to your brother and then declare BK).

PAYDAY loans, while under the actual law may be denied discharge (as they renew every 30 days and are therefore too close to filing and are considered made in anticipation of BK), because of how abusive and unfair they are, if taken out a bit before filing, most judges will indeed allow them to be discharged - regardless of the many good arguments the lender has.

Virtually all legal penalties and fines can not be discharged as that is against the "public good'...BK is not intended to allow you to avoid paying for your misdeads and avoid the consequences of prior actions of that type. No, it won't lessen your jail term either.

Debts secured by an asset (say a car or house mortgage) have first call or right to the money received from that asset. If it isn't enough to pay the debt, the remainder of that debt becomes a general or unsecured claim against the BK., and has a chance to payment on that level too (albeit a lower priority than those who have yet to receive anything). The end/remaining amount that can't be satisfied is generally discharged by the court...meaning you no longer owe it. You get a fresh basically debt free start....many of those you owe don't get paid what they had expected and relied on, if anything.

There are many other considerations too. BK will severly hurt your ability to get credit for a very long time for example. It is on your credit report for at least 10 years...and employers refer to that too, as do landlords and more. Many do not trust people with bankruptcies in their past, especially in the last few years. Many more things.

That you have done so is actually available to all, as a matter of public court records, for much longer than the 10 years it is on your credit report.

Not disclosing all items is frequently tried and easily discovered, in which case - as you are swearing under oath to the court you included all info - your case is dismissed, and regularly, fraud charges are pursued. (Courts don't take to being lied to well).

Many seem to fall into the trap thinking that they can trick or change or especially shortcut the system, or want to believe what they wrongly understand overrides things (like I don't have to report that asset because it is exempt). It simply ain't going to happen.The courts, Judges, laws, bankers, all those zillions of attornies, etc, have been through this thousands of times for many, many years. The processes are fairly well worked through and prepared for tricks and games. It is unlikely you would discover one that hasn't been tried a zillion times before!

The Cos that claim they can change your record, or make magic happen (either before or after BK), are scams, and getting caught doing something unsavory (intentional or not), other than screwing up your bankruptcy filing, is frequently considered and persued criminally. (Think your financial troubles are bad, try adding in criminal ones).

The legal process and system is demanding even for those experienced with it. Many of your creditors will have an attorney to assure they get as much as possible, even groups of lawyers, who specialize only in bankruptcy. Simply you should/better/need to have one too

Answer 6

You can. The important thing to remember is that some of these internet payday lenders are not necessarily in the United States. They don't concern themselves too much with US law. In a normal bankruptcy proceeding, they would be barred from any further collection activity against you by law. If they don't care about the law, nothing is to say they won't keep harassing you anyway. I wouldn't necessarily consider bankruptcy just yet, if the payday loans are your only problem. Some states have made payday loans illegal, or at least set interest rate caps. Most internet payday lenders won't be licensed in your state to make loans. The courts have decided that an internet payday loan is deemed to have taken place in the state where YOUR computer is at the time of the loan, not where the lender is. Check with your attorney generals office or consumer protection agency to find out more specific state laws pertaining to payday loans. Legally, they may not even be allowed to collect from you. However, if you wrote a check at a storefront location, then you wrote a check. You can't file bankruptcy on that.

Answer 7

If you file BK, include EVERYTHING, especially unsecured debt.

And whilee Pay Day type loans must be included, they may not be dischargeable.

Answer 8

Yes.