When a person files Chapter 13 bankruptcy do the payday loan people have to change my loan to close instead? 9 Answers as of October 21, 2014

Or can they wait to close it after the 5 years of the payment plan? The payday loan was in 2004.

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After all the payments are made in the Ch 13 Plan you receive a discharge. At that time your credit report should indicate that the debts are discharged in bankruptcy.
Answer Applies to: Minnesota
Replied: 10/21/2014
Barnhart Law Office
Barnhart Law Office | Bruce C Barnhart
When someone files a bankruptcy, they should and must list every debt. Including pay day loan debts. Upon filing the bankruptcy petition, the "automatic stay" prohibits the payday loan creditor from any attempt to collect the debt. Once the case is discharged, the payday loan creditor must comply with the discharge order and make no attempt to collect the debt.
Answer Applies to: Nebraska
Replied: 9/23/2014
GARCIA & GONZALES, P.C. | Richard N. Gonzales
They can wait until you complete your Chapter 13 Plan. Why you might ask? Because if the Chapter 13 case is dismissed, they can restart their collection efforts again. There is a fairly high default rate on these Chapter 13's.
Answer Applies to: Colorado
Replied: 9/23/2014
Ronald K. Nims LLC | Ronald K. Nims
Most payday loans are unsecured (meaning you didn't give them your car title or a second mortgage). Unsecured loans in a Chapter 13 are prevented from taking any collection activity during the life of the chapter 13 and are discharged at the end of the Chapter 13.
Answer Applies to: Ohio
Replied: 9/22/2014
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
I am not understanding your question. The Ch13 plan should say how that loan will be treated. At the end of the plan it should be all done.
Answer Applies to: California
Replied: 9/22/2014
    D.J. Rausa, Attorney at Law | D.J. Rausa
    I am not sure of your question, but are you speaking about how the loan is to be reported on your credit report?
    Answer Applies to: California
    Replied: 9/22/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    It is unclear what you are asking. If the payday loan company files a claim in your bankruptcy, they may get paid something from your plan payments. If they do not file a claim, they will get paid nothing. In any event, upon the successful completion of your Chapter 13, this debt will be discharged. How the lender choses to show the debt on their books until you receive a discharge is something that is up to the lender. The bankruptcy stay does prevent the lender from taking any steps to attempt to collect.
    Answer Applies to: Nevada
    Replied: 9/19/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    The payday loan would have to file a proof of claim in order to get paid in the Chapter 13 and after you have finished the five years you will owe nothing.
    Answer Applies to: New York
    Replied: 9/19/2014
    Rhymer Law Firm
    Rhymer Law Firm | William Rhymer
    If the payday loan was obtained (even renewals) before you file a Chapter 13, then it is required to be handled in the Chapter 13 Plan.
    Answer Applies to: Georgia
    Replied: 9/19/2014
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