Payday Loans and Bankruptcy

By continuing on to our website you are deemed to have agreed to these terms and conditions. Highly recommend this lawyer for all your bankruptcy needs! Loves this firm Mr Gentile and his staff are super helpful and caring and honest. He was not pleasant to speak with at all. If you are a Michigan resident and would like to explore your options for a Chapter 7 or Chapter 13 bankruptcy with an experienced Michigan bankruptcy attorneyplease contact us at or click the button below to schedule a free, initial consultation. The bottom line with regard to payday loans in bankruptcy is that you should avoid taking them in the first place. Everyone in his office provided superb customer service and they answered all our questions.

Payday Lending: Usury at its Worst

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In most cases, you can discharge a payday loan in Chapter 7 bankruptcy. This is because if you owe money to a payday lender, that debt is generally treated like that of any other unsecured creditor in your bankruptcy. 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. The average payday loan is usually $1, or less, so if your only debts are one or two payday loans, bankruptcy may not be your best option. A better approach may be to work out payment arrangements with the pay day loan company, where you pay them over a .

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Payday Loans in Bankruptcy: The Bottom Line

However, under this method, you do not lose any of your assets. Chapter 13 is ideal for those who do not qualify for Chapter 7, who have a significant amount of assets, or those who want to protect property under a loan. Payday loans are likely to be wrapped into the repayment plan if you file Chapter 13, along with your other debt.

Keep in mind that this option may be beneficial to individuals who have a personal loan that is secured by a vehicle or other asset. In some states, payday loans have transformed to become more asset-based. However, Chapter 13 can help you to protect the asset even as you file bankruptcy. Bankruptcy law does not protect individuals who have acquired the loan in the last 60 to 90 days.

If you have a new payday loan — even one that has been reestablished recently, this may impact you. Avoid taking out new loans and, whenever possible, work with a bankruptcy attorney.

What Are Payday Loans? Can Chapter 13 Help with Payday Loans? A Few Things to Keep in Mind Bankruptcy law does not protect individuals who have acquired the loan in the last 60 to 90 days.

Related Articles Student Debt and Bankruptcy. Top 5 Benefits of Bankruptcy. Child Support Debt and Bankruptcy. Gentile has been practicing bankruptcy and estate planning law for since Everyone in the office, from the receptionist and the supporting staff to Jim himself have always been professional, helpful and responsive.

Very friendly, very knowledgeable, and unlike some answer questions and emails super fast. You will have piece of mind after using their office. Special thanks to Allison and Matt, your the best. I am absolutely delighted to have chosen Mr. Gentile and his staff to help me with my BK.. Gentile, Allison and Chantelle were all very knowledgeable and honest thru out the entire process..

They were all very professional and very pleasant to work with. I would strongly recommend Mr. Gentile and his staff to my friends and family and anyone with bankruptcy needs.. The process from start to finish with this law office has exceeded my expectations.

Everything was explained in detail, all my questions were answered immediately or within 24 hours. I appreciated the time Jim Gentile and his entire office gave me and the patience as well. I highly recommend this office.

Gentile and his staff are truly the peoples advocate! When bad things happen to good people James is the one for you!! Mr Gentile and his staff are magnificent people, they are courteous, kind and very knowledgeable!!!

Gentile offered advice that has saved me thousands of dollars. Simply put, James and his staff are the best, period. It was such an absolute straight forward process with peace of mind from beginning to end. James and gus staff handled everything timely and professionally. Thank you again for all that you have done for me!

My husband and I highly recommend using the law office of Mr. Everyone in his office provided superb customer service and they answered all our questions. They are prompt when returning phone calls and emails. Gentile's office is the one to call. I am absolutely delighted with Jim Gentile and his staff. They provide personalized first-class service that is very difficult to find in today's world.

It is like having good friends who are also experts to help you and answer questions and concerns. My phone calls are returned quickly, and my emails are answered very promptly. I worked mostly with Jim and his assistant Shantel, and I can recommend them and their firm without reservation. These people and their law firm are genuine jewels! Please don't hesitate to contact them for your estate planning needs.

Great team and very friendly any time we had a question. Our case was taken care of fast and without issues. I would never recommend this lawyer to anyone. He was very impatient. He told me one fee then asked about my income and then told me the cost increased. He was not pleasant to speak with at all. James met me personally to discuss my situation and options. Reminders from his office to do the paperwork required on my end were very welcome--I would have forgotten by myself!

Gentile and his staff were very helpful with my bankruptcy they not only helped me through my bankruptcy but some of my family members as well. I highly recommend his outfit for bankruptcy and also Mr. Gentiles wife Debbie does taxes and that was another help for me being I was behind on my taxes but I am current now with Debbies help also on one more note I thought I was going to have to come up with the money for bankruptcy but Mr.

Gentile told me I would not owe him a dime being I had legal services through my work I never told him I had the services he figured it out himself.

Five stars for Mr. It is a common misperception that payday loans are not dischargeable in bankruptcy. This is false, as explained below, but they can present some practical complications. The US Bankruptcy Code breaks down different types of debt into several classifications and treats each classification differently.

Unsecured debt debt with no collateral securing it is divided into priority and non-priority classifications. Examples of this type of debt are child support payment deficiencies, recent tax debt, recent wages owed to former employees, and so forth.

Payday loans are, like all non-priority unsecured debt, totally dischargeable in bankruptcy. Payday loans do present some potential hazards in a bankruptcy filing, however. These hazards arise from the peculiar qualities of payday loans described above: Location of Payday Lenders presents the first challenge in a bankruptcy. Upon filing of a bankruptcy petition, all creditors are noticed of the bankruptcy filing by the Bankruptcy Court.

In order to ensure that this actually happens and that the creditor is noticed of the filing, you must include the name and address among other information in your bankruptcy petition. If you do not include the correct address, the creditor will not be properly noticed and will have a defense to actions your bankruptcy lawyer may take if they continue to harass you for collections after the filing. However, with payday lenders, the key question is always who the actual corporate owner of the lending service is and where they are located.

If they are located on an Indian Reservation or outside the territorial United States, it will be A difficult to notice them until a viable address is ascertained; and B even more difficult to execute a judgment for violations of the Bankruptcy Code with regard to post-filing collections attempts, etc. The post-dated checks many such lenders require to make you a loan also present an issue in bankruptcy.