The Law Office of M Grater LLC | Mark O. Grater
All debts and loans are dischargeable in bankruptcy. However, there are various exceptions depending on the type of loan which you should always seek legal advice about. For example, any money borrowed within 90 days of filing bankruptcy gives the creditor the benefit of a presumption that you took out the loan with the intention of discharging it in bankruptcy.
Answer Applies to: Connecticut
C Page Hamrick Attorney at Law | C Page Hamrick
FOR WEST VIRGINIA ONLY: #1 You must list ALL your debts on your bankruptcy petition. #2 Bankruptcy law determines whether a debt is dischargeable or not, not the creditor. #3 Unless the pay day loan is secured by some security interest there is no apparent reason why it would not be dischargeable. Is there some fact you have not told us?
Answer Applies to: West Virginia
Russell & Heffner, LLC | Lawrence E. Heffner, Jr.
Unsecured payday loans are dischargeable in a Chapter 7 bankruptcy. Notwithstanding the above, please note, however, that debts incurred within 90 days of your bankruptcy filing that were for the purchase of luxury goods or services owed to a single creditor in excess of $650 are presumed to be nondischargeable. The same goes for cash advances that accumulate to $925 or more if made within 70 days of your filing.
Answer Applies to: Maryland
Rosenberg & Press | Max L. Rosenberg
Yes, you can list a payday loan on your bankruptcy schedules, however you should realize that it will have little to no effect. Payday loans by their very nature are illegal. Filing bankruptcy to remove payday loans is like asking your mugger to put his gun away and leave you alone because you have diplomatic immunity. The mugger doesn't care. Worse than that, you have given over all of your personal information to some nameless people in some distant country. They have sold your information countless times and are very likely engaging in identity theft all over the world with your formerly good name. You would be well advised to consider checking your credit report regularly now and perhaps even putting a freeze on it. Some of the people that I have come in contact with recently that are con-artist/pay day loan people are O'Bannion and Water Arbitration and Private Courier. They use innocuous names like Patrick and claim to be working out of the Sears Tower in Chicago, but in reality these payday loan people are working out of their homes on burner cell phones in India and Asia. They will lie and tell you they are government agencies or even the police. They use fear and intimidation to steal your money. And many scared people willingly part with their money in hopes that they will go away. Unfortunately, they are like cats. If you put out a bowl of milk, the street cats will remember to come back time and time again looking for more. It just shows them you are an easy mark. The moral of this story is never under any circumstances take a payday loan. Half the time they do not send the money. When they do, they charge usurious illegal interest rates and they steal your identity and threaten you forever like a loan shark. They say you can't con an honest person, but its debatable when you look at the payday loan schemes.
Answer Applies to: Connecticut
Garner Law Office | Daniel Garner
You must list all creditors to whom you owe money on the date of filing, regardless of whether you intend to repay them or not. If you borrowed the pay day loan within 90 days of filing bankruptcy, the creditor could challenge the discharge of that debt but often they don't bother, depending upon the amount at stake. If it was within 30 days of filing, I counsel people to plan on paying it back. If it was within 90 days and the creditor challenges it, I usually counsel people to settle it rather than fight it, because most people filing bankruptcy can't afford to litigate the dischargeability of a debt.
Answer Applies to: Oregon
Michael B. McFarland, P.A. | Michael B. McFarland
Generally, yes. In some places, though, there can be an issue regarding the check (if any) that was used to "secure" the loan. In Northern Idaho, the prosecuting attorney will not press charges in these cases - but that may not be the same in all jurisdictions. A question of good faith may also be a potential problem. It would be best to check with an experienced bankruptcy attorney in your area in advance of any bankruptcy filing.
Answer Applies to: Idaho
Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
Yes you can but don't be surprised if you don't have a fight on your hands. The less than honest ones immediately submit your check to be cashed and either you end up with an empty bank account or they report you for writing a bad check.
Answer Applies to: Michigan
Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
You can include pay day loans in your bankruptcy but if you took out the loan recently and it wasn't used for necessary expenses then you could have a fight with the creditor. Typically it would need to be for more than $600.00 within the past 70 days but if it was for necessary expenses (groceries, gas, etc) it would be dischargeable.
Answer Applies to: Indiana