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BK is a Federal process, and while many FEDERAL district courts use definitions and rules that help facilitate things for the customs and laws of the areas they generally serve, most of the BK process is the same everywhere.

These debts can be a bit touchy...the problem is, a debt incurred within a few months of, or anticipation of BK can't be included for discharge (Federal rules)...and the way pay day loans are generally made, they actually are re-written every few weeks, so they are always new!

On the other hand, many courts look past that (especially as the lender may already have collected a large amount of the loan and these loans are considered almost predatory in nature), and will allow them. It just sort of depends. On you, your case and the court your in front of.

Certainly, like most things, they should be more acceptable as part of a C 13 than a C7. Obviously, once filing a C13 you are prohibited from making any new ones of these (or any new debt)...and that would likely incur the rath of the court and maybe have your case dismissed.

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Q: Can you include payday loans in a bankruptcy in IL?
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