If you have taken out payday loans and having trouble paying them back filing bankruptcy can be helpful. In a chapter 7 or a chapter 13 bankruptcy  you can have payday loans forgiven. The key to successfully discharging a payday loan is that you haven’t taken out the loan to soon before filing. If you have the payday loan company may try to object.

Objecting to Bankruptcy Discharge:

For this to happen the payday loan company will have to file an adversary proceeding. In this proceeding the payday loan company  must show you took the loan out with intent not to repay it. The time between taking the loan and filing is what matters. If you’ve taken out a payday loan its best that you wait 90 days before filing bankruptcy. The bankruptcy trustee scrutinizes loans acquired within 90 days of filing bankruptcy.  In the event you’ve taken out the loan within the 90 days you may be able to discharge the debt. If you used the current loan to pay a past loan from them you’re okay.

What About a Post Dated Check:

Many payday loan companies require you to write them a postdated check as security for them giving you the loan. Although they can do this, holding your check doesn’t mean that you can’t file and still discharge the debt. Once you file the check payday loan companies cannot cash it.  But beware–cashing the check once the payday loan company receives notice of the bankruptcy filing violates the automatic stay. The automatic stay forbids collection on a debt once you file the case. Once the bankruptcy is filed, cashing the check is an attempt to collect this debt. Truth be told, for you to get your money back your bankruptcy attorney will have to file an adversary proceeding against the payday loan company. In this proceeding, there is a good chance of required repayment to you by the loan company.  However, this is time consuming. To save time I advise many of my clients to stop payment on the check once we file or to simply shut the account down and reopen another checking account.

Payday Loan Harassment, Call a Bankruptcy Attorney:

If you are drowning in debt and consider filing a bankruptcy South Tulsa Bankruptcy Law Office can help. Our Tulsa bankruptcy law attorneys have helped thousands of people find their way through oppressive debt and get a new financial start on your financial life. Call today and get a free bankruptcy consultation