How can you file bakruptcy if you get a lot of payday loans?

Can you file bankruptcy on payday loans? My friend wrote over 20 and she wants to file bankruptcy what will happen if she files chapter 7

Answer #1

Loans made within a short period of Bankruptcy generally aren’t included, as they are considered taken in anticipation of BK, so you won’t get relief. Payday loans are written in such a way that they actually renew every 30 days or so…and are entirely new loans…getting entirely new fee’s etc. So typically they really can’t be discharged in a BK.

However, a number of Judges/Courts, because of the abusive nature of Payday loans are simply looking through that and allowing them based on the “original” date that started the chain of loans. It just depends on your presentation and specific court your in. Even when a judge does allow it the loan company can and probably will protest. Hopefully it goes well for the BK but usually is does not.

Answer #2

zudano, if you’re going to copy and paste external information, you need to cite your source. Your answer came from wiki

Answer #3

As far as I know, you can, but there’s a time limit that those loans would have had to have been taken and I’m not positive what that is.

Does she realize that filing bankruptcy will destroy her credit and that you actually have to pay to go bankrupt?

It’s not always the best option…if she can arrange another possibility, she should do it.

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