There are many options available to debtors looking to find a way to get relief from their debt. Debtors sometimes seek out payday loans which give them money now in exchange for future payment plus very high interest. You can learn more about payday loans here. If you fail to pay off your payday loans, your payday loan company may decide that it is time to sue you. If that happens you should contact a bankruptcy law firm to learn about all of the options available to you. Debtors who have payday loans may be eligible to discharge the unsecured loans through chapter 7 bankruptcy or chapter 13 bankruptcy. A bankruptcy lawyer can tell you which option is the best for you.
A chapter 7 bankruptcy can give you the fresh start you need and allow you to discharge all of your unsecured debt, including payday loans. Debtors do not have to worry about going to jail or face any criminal penalties if this debt is discharged. Payday loan companies may often tell debtors that this is the case, however it is not true. A chapter 13 bankruptcy will allow debtors to make payments to a bankruptcy trustee who administers their bankruptcy estate. In a chapter 13 payments are made based on a debtors disposable income available to pay their creditors. If a debtor is not trying to make up payments that they are behind on a vehicle or home, then a chapter 7 bankruptcy may be the best option. In order to qualify for a chapter 7 bankruptcy, a debtor must have a household income that is below their states median income for their family size.
Debtors often feel that they want to pay back their payday loans which is honorable, however if you are considering filing bankruptcy, you should know that all debts must be included. You cannot choose to pay one unsecured debt but not another.
If you have additional questions regarding whether your payday loans are dischargeable, set a free consultation today with Symmes Law Group by calling 206-682-7975
* This article was updated on August 21, 2016 *