With interest rates that can run into triple digits, payday loans can create staggering amount of debt. If you have gotten in over your head with payday loans, filing bankruptcy may provide a way out.
At the Orantes Law Firm, in Los Angeles, attorney Giovanni Orantes is dedicated to helping consumers throughout Southern California obtain debt relief by filing bankruptcy. We offer a free initial consultation to look at the challenges you face and give you honest answers about payday loans and bankruptcy.
Chapter 7 Bankruptcy and Payday Loans
Payday loans are dischargeable when you file Chapter 7 bankruptcy. These loans can also be discharged when you file Chapter 13 bankruptcy, though you may have to pay back a portion of the loan.
In bankruptcy, a payday loan is treated like any other unsecured loan. Instead of a promissory note, the borrower typically gives the lender a post-dated check. The loan is still unsecured, because it is not backed by property such as your home or your car. You may want to stop payment on the post-dated checks or change checking accounts after you file bankruptcy.
Once you decide to file bankruptcy, you must not take out any more payday loans, as that could be considered bankruptcy fraud. If you pledged your car title for a loan, let attorney Giovanni Orantes know so we can deal with the loan as a secured debt.
Contact Los Angeles Bankruptcy Attorney Giovanni Orantes
For more information about dealing with payday loans in bankruptcy, call 213-389-4362 or contact us by e-mail to schedule a free lawyer consultation. Se habla español.