Posts Tagged ‘payday loan debt in bankruptcy’

Laws Regarding Payday Loan Debt In Bankruptcy

There are certain laws to regulate how payday loan debt in bankruptcy should be treated. If you are filing a bankruptcy petition and are not sure whether the payday debt is also dischargeable, you must consult an expert bankruptcy attorney – someone also specializes in the payday loan laws applicable in your state. Here, it is important for you to keep in mind that the laws may vary significantly depending upon the state you are filing the petition in. Following is a brief overview on some of the important aspects associated with this issue.

Eligibility Requirements For Payday Debt Discharge

Many people have the misconception that payday loan debt in bankruptcy just cannot be discharged because it is not a conventional loan. Though it may be true in some states, but in many other states, things can be in your favor. Therefore, awareness about the state laws regarding this issue is very important. Your decision must be based on facts, not on false assumptions. In most states, even payday debts are dischargeable as per the bankruptcy laws. Even though payday loan programs arte often termed as cash advances, they are still structured as loans and are treated as any other unsecured loan.

Criminal Charges

Many people hesitate to include payday loan debt in bankruptcy because they fear that the lenders may file criminal charges against them on the basis of bad checks (bounced checks), but it is very important for you to keep in mind that most states prohibit lenders from taking any such action. Nonpayment of payday debt is not considered as a criminal offence. Since the check is issued as part of the structure of loan, even check bouncing in these loans does not provide any base to place criminal charges against the borrower. The lenders however have the right to file civil suits against you. Besides that, lenders also have the right to file a motion and challenge your request to get the payday debt discharged as part of the bankruptcy process.

Check Cashing

If you have included certain payday loan debt in bankruptcy where some check cashing agencies are the lenders, there are specific laws to deal with that situation. For example, if you have borrowed a cash advance from a check cashing agency and have now filed bankruptcy, the check cashing agency still has the right to send that check for collection. But even in this situation, the payday debts are dischargeable.

As you can see, things can be a little complicated when it comes to including payday loan debt in bankruptcy, it is always wise to have an expert legal representation for your case to make sure your rights and interests are well protected.

Custom Search

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?