Bankruptcy Law
Personal and Payday Loans

If you file bankruptcy can you include payday loans?



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Here's the thing - Loans made within a short period (say a year or two, but certainly 90 days) 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. This is one of the main ways they get much higher than stated interest rates and these things can grow so large, so fast. Hence, they also really can't be discharged in BK.

However, a number of Judges/Courts, because of the abusive nature of Payday loans (and bad press...actions to control them), are simply looking through that and allowing them based on the "original" date that started the daisy chain of loans. It just sort of depends on your presentation....and the specific court your in. Even where a judge does allow it...the loan company can and will protest...and they do have a good firm legal case....but hopefully this can at least be resolved favorably for you.