Bankruptcy Payday Loans

Posted on November 16, 2008 
Filed Under Payday Loans

Bankruptcy Payday Loans

Bankruptcy

A chapter 7 bankruptcy filing will allow all debts of person to be wiped allowing the person that is burdened with massive debt a fresh start. The assets owned by the person will also be turned in to the trustee and converted to cash. 

The bankruptcy is recorded in your credit history for 10 years and the longer it is since declaring bankruptcy the less likely it is to affect the chances of obtaining credit.

 Payday Loans and Bankruptcy

A very common and important question that comes is, Are payday loans discharged when declaring bankruptcy? There is no simple answer to this question but there are a few considerations to be made. The state laws will determine whether payday loans can be discharged with the loan. A lot will depend on the circumstances of the bankruptcy. Does the number of payday loans, the amounts and the pattern in which it was obtained suggest the debtor is being fraudulent? On the other hand does the payday lenders practice suggest predatory behaviour? These are the questions that must be answered.

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