Can I include an Indian payday loan I got over the INTERNET in a Chapter 7 ? The interest rate was 785% and I could never pay it back much as I tried to .
Chapter 13 Bankruptcy Attorney
Absolutely it would be discharged in your Chapter 7, however, keep in mind that unfortunately these payday lending companies often operate "outside the law" and may engage aggressive collectors who will tell you that the debt wasn't discharged and that you still owe it or other similar tactics, including threats and harassment.
A lot of these payday loan companies utilize illegal tactics in their collection attempts. It might also be beneficial for you to contact an appropriate consume protection type of state agency, as a lot of states are going after these types of payday loan companies.
DISCLAIMER: Brandy A. Peeples is licensed to practice law in the State of Maryland. This answer is being provided for informational purposes only and the laws of your jurisdiction may differ. This answer based on general legal principles and is not intended for the purpose of providing specific legal advice or opinions. Under no circumstances does this answer constitute the establishment of an attorney-client relationship. For legal advice relating to your specific situation, I strongly urge you to consult with an attorney in your area. NO COMMUNICATIONS WITH ME ARE TO BE CONSTRUED AS ARISING FROM AN ATTORNEY-CLIENT RELATIONSHIP AND NO ATTORNEY-CLIENT RELATIONSHIP WILL BE ESTABLISHED WITH ME UNLESS I HAVE EXPRESSLY AGREED TO UNDERTAKE YOUR REPRESENTATION, WHICH INCLUDES THE EXECUTION OF A WRITTEN AGREEMENT OF RETAINER.
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Consumer Protection Attorney
The development of "tribal" claims of exemption from virtually all lending law is very troubling and the efforts to address this problem have met with mixed results. I am familiar with "tribal" claims that they are not required to follow federal lending laws like the Truth in Lending Act (disclaiming that they comply only voluntarily and are not required to comply). To date, I have not yet heard of a "tribal" claim that they are not bound by federal bankruptcy law.
However, I have found that most of the "tribal" loans are sent to collection agencies that are clearly bound by the Federal Fair Debt Collection Practices Act (FDCPA). Any abusive collection activity would give you a case against the collector.
As far as the bankruptcy goes, of course you should include the "tribal" loan in the bankruptcy. It will then be up to the "tribal" claimant to step forward and challenge its inclusion. If this "tribal" loan (or the collection activity about it) is the major reason for your filing bankruptcy, I would consider speaking with an experienced FDCPA attorney before resorting to bankruptcy. It is often possible to deal with the collection harassment without filing bankruptcy.
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Well said Kris!
I am an attorney licensed to practice law in Ohio and some Federal Courts throughout the United States. I am not answering your question to solicit you as a client and there is a good chance that I am not licensed to practice law in the state that you reside. I hope that you find my assistance beneficial and, at most, use my advise as a finger pointing in the right direction. An attorney client relationship is not established by posting back and forth online. One of the most beneficial aspects of working with an attorney is the attorney client privilege which does not exist when you post personal facts online to faceless strangers. Hire an attorney if you want specific legal advise. If you cannot afford one, call your local bar association or search "(your city) legal aid" online. The fact that you took the time to post your question online likely means that you could use the aid of an attorney. Call around your area and see if any local attorneys offer free consultations.
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Yes you may include the loan in your bankruptcy filing. The Native American loan company is part of a "sovereign nation" and if there is a dispute over the terms of the loan or the payoff, your contract likely stipulated that the forum for the dispute is in their home state, or before an Indian counsel. If you are considering bankruptcy, you should absolutely attempt to rid yourself of this extremely onerous loan. Many others have complained about their practices. You should seek the advice of your bankruptcy attorney.