Payday Loan Debt
If you are trapped in a cycle of payday loans, it can be difficult to see how you can possibly catch up. You might have one payday loan from a local company, and then another from an online source, and all your money is going to service those debts and their ridiculously high fees and interest rates.
Many people do not know that they can include payday loans within a bankruptcy, allowing them to catch up on their bills and get a fresh start.
What Kind of Debt is a Payday Loan?
Payday loans are an unsecured debt, which is the type of debt that bankruptcy specifically targets. In fact, in most cases you can completely discharge payday loans with a Chapter 7. The creditor may challenge your ability to wipe out the debt. But due to the predatory nature of most payday loans, bankruptcy courts are frequently unsympathetic towards payday lenders.
If you have had to submit a post-dated check to the lender for the full amount of the loan or given them the right to take an ACH payment, your bankruptcy lawyer can advise you on ways to deal with that obstacle.
If payday loans and bills are overwhelming you, call us today at 816-842-6200 to speak with an attorney. Or you can email us and schedule your free consultation.