Jump to Navigation

How Are Payday Loans Affected by Bankruptcy?

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.

How Can We Help You?

Bold labels are required.
Contact Information


The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Our Latest Blog Posts

Need help? Email Us Here! Live Chat

← Prev Step

Thanks for contacting us. We'll get back to you as soon as we can.

Please provide a valid name, email, and question.

Powered by LivelyChat
Powered by LivelyChat Delete History