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IL state law regarding payday loans and debt collection, will filing for bankruptcy stop collection process
Schaumburg, IL
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Posted about 1 year ago in Debt / Lending Agreements
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Payday loan debt:
I have gotten myself into trouble with payday loans. I was paying but am no longer able to do so. Received call from person claiming to represent a law firm offering me a settlement amt if I paid w/in 24 hours, he wanted my debit card #. I just finished school & have no money to speak of. Could find no record of lawfirm or matching phone number. I want to do the right thing but am unsure who to proceed, or if this was really legitimate. I am REALLY in trouble here! Is Chapter 13 an option? Will pay loan sharks work with bankruptcy courts?Pls advise. Thank you for your time. Jackie L Schaumburg,Il
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Answers (4)
Peter Francis Geraci
This attorney is licensed in Illinois and 5 other states.
Posted about 1 year ago.
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Jackie, don't ever give anyone on the phone your debit card number. Realize that payday loans probably already have your bank account information, so you will have to close that account if you don't want a deduction to hit. Or you can notify your bank in writing "do not accept ACH requests from...."
You can't file Chapter 13 unless you have sufficient regular income to pay your regular living expenses, and some left over for a Chapter 13 payment to your creditors. Payday loans don't even bother filing claims in Chapter 13 cases, and aren't usually listed on your credit report, so unless you are working full time and have a lot of other debt, Chapter 13 is not an answer. Chapter 7 may be available to you if you have a lot of other debt. Best advice: get working and pay them, usually payday loans are small. This answer is not legal advice on your particular situation: it is general advice that does not create an attorney client relationship. 
Mazyar Malek Hedayat
This attorney is licensed in Illinois.
Posted about 1 year ago.
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Payday Loan debt is like any other as far as the bankruptcy system is concerned. That is, it represents an unsecured obligation that will be eliminated (in the case of a Chapter 7 liquidation) or paid down at a vastly reduced rate (in the case of Chapter 13 reorganization). In short, it you choose to file then this payday loan will cease to be an issue.
Brett D Weiss
This attorney is licensed in Dist. of Columbia and 1 other state.
Posted about 1 year ago.
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Chapter 7 may be an option, and Chapter 13 may be an option. Payday lenders are normally the prey, not the predator, in bankruptcy court!
Do *not* give out your credit card number to anyone if you aren't 100% certain who it is. I strongly recommend speaking with a local bankruptcy attorney. 
Andrew Joseph Miofsky
This attorney is licensed in Illinois and 1 other state.
Posted 6 months ago.
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While it is possible to compromise a debt, you should not provide a telephonic or internet payment authorization. You should get the settlement offer in writing and you should receive a written release of liability for the remaining balance. It sounds like you have multiple issues. I recommend you contact an attorney in your area to discuss your entire financial picture.
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