Can payday loans be included in bankruptcy

can payday loans be included in bankruptcy

Michelle, from what you said, yes, bankruptcy would be able to get rid of your debts including payday loans. Be sure to consult with an experienced bankruptcy lawyer in your local area to be sure, because details (more than can be discussed here) are important. Any debts that are determined to be fraudulent by the bankruptcy court are generally non-dischargeable and cannot be included in a bankruptcy settlement. It is up to the PayDay loan company to prove that these loans were incurred after the cut off date. In most cases, you can wipe out (discharge) a payday loan in Chapter 7 bankruptcy or pay some part of it in Chapter 13 bankruptcy (often a small portion). Qualifying for Chapter 7 bankruptcy. Payday loans and other debts can be discharged (forgiven) in as few as four to six months. But first, you must meet income qualification requirements. Your bankruptcy attorney can help. A key feature of Bankruptcy is that you must include all of your unsecured debts in the arrangement. Payday loans are unsecured debts and so they will always be included and written off along side any other unsecured debts that you have. However given the nature of payday loans it is likely that you have only taken them out relatively recently. Can payday loans be included in bankruptcy? Yes, you can include payday loans in your bankruptcy. In fact, most debts can be included – here is a quick list of which ones you can include: Payday loans do present some potential hazards in a bankruptcy filing, however. These hazards arise from the peculiar qualities of payday loans described above: the provision of post-dated checks, location of the creditors involved, and the quick turnaround time required contractually for repayment of the loans. After 70 days, the creditor can still object, there's just no presumption. Long story short, the longer you wait the less likely you are to have a problem. Payday loans themselves get no extra protection in bankruptcy. 0 found this answer helpful helpful votes | 0 lawyers agree