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  • Know About Payday Loans During Bankruptcy

    Know About Payday Loans During Bankruptcy

    Call: 888-297-6203

    If you are worried about the inclusion of your payday loans in bankruptcy, you need to consult experienced bankruptcy lawyers at 888-297-6023 as there is no specific rule regarding their inclusion and discharge. A payday loan is when an individual ask for a loan from an institution which is repaid through a portion of their next paycheque. To avail this kind of loan, a paycheque stub is required to show that you can pay back the loan. As and when you receive your pay, you are required to pay the loan company. Generally, these companies take PDC (Post-dated cheques) or opt for an automatic debit from your account.

    One of the most important question that is asked from lawyers of Dallas based bankruptcy law firm Recovery Law Group is whether payday loan can be discharged in bankruptcy or not. This depends on several factors including when was the loan taken. If the loan was taken just a few days prior to filing for bankruptcy, it can be assumed that the debtor was trying to defraud the creditor. In such case, the loan is not discharged unless the intention of the debtor could be proved. The best situation in this case would be to show good faith and try to repay the said loan before filing bankruptcy papers. If the payday loan included in bankruptcy is found to be obtained for defrauding the creditor, the loan is not dischargeable, and the debtor will have to pay the loan.

    Sometimes, payday loans are considered illegal. This happens when they are charging too much interest over a specified period (generally, 1 year). Many times, companies charge 20% interest rate for a loan offered for 2 months and calculate the interest percent for the 2-month duration. When calculated for an entire year, the loan amount repaid over 1-year period would be in the range of more than 200%! Such high interest might be the reason for bankruptcy. In such cases, there is possibility of the court siding with you if you can prove the situation has been unfair. Thus, if your intentions are clear and there is no way that fraud has been proved, you might be able to get your payday loan discharged in bankruptcy.


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      *Do you own a home?

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    • How to Prevent Payday Loans Creditors Through Bankruptcy?

      How to Prevent Payday Loans Creditors Through Bankruptcy?

      Call: 888-297-6203

      When people have accumulated huge amounts of debts and run out of options to get cash, they resort to extraordinary measures. A payday loan is one such method which has been used by scrupulous lenders to trick people who have been facing monetary issues out of their hard-earned money. Payday loan has an interest rate of a whooping 99% but dire circumstances require dire measures, hence people agree to this form of a loan. According to Dallas based bankruptcy law firm Recovery Law Group, people who opt for payday loans are often left at a worse condition than before.

      Stopping payday loans is quite difficult, even with bankruptcy. Although bankruptcy can hold most collection actions including foreclosure, repossession, and wage garnishment; when it comes to payday loans, an automatic stay is not enough. This is because, in lieu of a payday loan, you are required to give post-dated cheques to the creditor for the repayment of your loan. Thus, if you wish to prevent those cheques from encashment, you need to make extra efforts. Mere bankruptcy filing won’t be enough in this case.

      Though payday loan lenders can cash the post-dated cheque, an efficient bankruptcy lawyer can ensure that your funds are safe. You can either opt for stop payment on the cheques given to the payday loan lender or close the concerned bank account. Bankruptcy lawyers can guide which would be the better option from the two choices.

      The timing of bankruptcy filing is also important. If you borrow more than $750, and you wish to include this debt in your bankruptcy, you need to wait a minimum duration of 70-90 days. A bankruptcy lawyer Dallas can help you get your papers in order and ensure that most of the debts you have incurred are included in your bankruptcy papers. If you haven’t hired an attorney for your bankruptcy case, you can call 888-297-6023 to schedule an appointment for a consultation.


        *Are you more than 60 days past due on your mortgage?

        *Do you own a home?

        Are you currently working?

        By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.