Can you put a payday loan in a chapter 13 bankruptcy?
If I got a payday loan, can I put that in bankruptcy.
Yes, you can put pay day loans into bankruptcy, whether it is a chapter 7 or 13. This type of debt is an unsecured debt. Once you determine you are going to file for bankruptcy, please do not pay any of your unsecured creditors like a payday loan creditor. They will be addressed in your bankruptcy.
I agree with all of the above. I suggest that you disclose why you needed those funds. If you tell your lawyer that the funds were used for "necessities for life", then that explanation would be received much more favorably than if you used the funds for discretionary goods. Examples of necessities of life are groceries, car repairs so that one could obtain transportation to employment, and school clothes for children.
As stated by others you can. The issue I see in my practice is that these payday lenders often make threats when you don't pay about having you put in jail. If this has happened to you I would encourage you to speak with a bankruptcy attorney about it. You cannot be put in jail for failing to pay a civil debt.
Thank you for the question. This is something that we see often in our bankruptcy law practice. For educational purposes only at this point (because of a limited fact pattern given), pay day loans are unsecured debts and are dischargeable in a bankruptcy as such. However, you should first consult your chosen bankruptcy attorney and specifically discuss the timing, contractual terms, and repayment history for your particular loan. For example, if the pay day loan was taken out about 3 weeks ago and no (re)payments have been made yet, then it is likely that the company will object to the dischargeability of this particular debt, which may cause this particular debt to survive the bankruptcy and remain your responsibility. Your bankruptcy attorney will be able to help you better understand this particular type of loan. Hope this helps.
The aforementioned "answer" is not considered to be legal advice. You are advised to contact an experienced attorney for legal advice pertaining to your specific needs. Furthermore, the above does NOT constitute an attorney-client relationship. France Law Group is a debt relief agency and helps people file for relief under the U.S. Bankruptcy Code.
Sure you can. And to expand on that, every person or business you owe money to needs to be "put in" a bankruptcy case, meaning you will list them on your schedules as a creditor, so long as there is an unpaid debt or claim you owe them on the date the bankruptcy petition is filed. For further information, consult with a qualified bankruptcy attorney in your area.
Disclaimer: As always, you get what you pay for. Be sure to talk to a qualified attorney in your area about your specific situation before you choose to rely on any information you get from internet discussion boards such as this one. I am a Michigan attorney and I do not give advice about state law other than Michigan law. If you live outside of Michigan the information presented here is based on federal law and general legal principles, and should not be construed as advice specific to your state's law.
